What’s the Louisiana Statute of Limitations on Paying Old Debts?
Did you know that after a certain amount of time in Louisiana you can wipe out debts? True story!
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In Louisiana, we're not known for our financial health. But did you know, that according to ProtectingConsumerRights.com, in Louisiana, the statute of limitations for contracts whether oral or written is 10 years?
Now just because you've had a certain bill or debt for ten years or more, it doesn't mean that you automatically don't have to pay for it anymore. After all, most mortgages are 30-year loans. However, ProtectingConsumerRights.com says, 'Creditors have a limited period of time in which to file suit over an unpaid debt. Each type of debt has a specific time period in which a lawsuit can be filed against someone who owes a debt so that the one who is owed can obtain a judgment. The judgment allows one to pursue assets and wages, and force payment through involuntary means.'
What is a 'Statute of Limitations?'
ProtectingConsumerRights.com adds that a 'statute of limitations' as referenced above, 'That limited time period is known as the statute of limitations. Once that limitation period passes, and no lawsuit was filed, the debt does not need to be paid by the consumer. As a rule of thumb, a creditor relinquishes its right to file suit and collect a debt that it is owed after this time period has expired."
Is the 'Statute of Limitations' the same for all kinds of debt?
No. The 'statute of limitations' is different with regard to different kinds of debt. ProtectingConsumerRights.com says, 'Open accounts, like credit card agreements, have a much shorter statute of limitations period of 3 years as do lawsuits, which are filed but not pursued. Judgments both domestic (in-state) and foreign (out of state) have a limitations period of 10 years and if not the judgment is not renewed within the ten years, it becomes a nullity.'