Have you ever been in a situation where you just kept getting harassed by a debt agency or debt collector, who keep telling you that they are going to file a lawsuit against you? Well, there is such a thing called a statute of limitations on debt in all states. What this means is that once a debt passes this statue of limitations, a debt collector no longer has the right to sue you for payment. However, this does not mean that the debt just magically disappears. You still have to pay the debt back, but you just cannot be sued over it.
|Oral Contract||3 years|
|Written Contract||5 years|
|Promissory Note||5 years|
|Open Accounts||3 years|
There are four different kinds of debts, with each having its own specific statue of limitations. The first type is oral contract. An oral contract is an agreement that is made verbally, with no contract that is written or signed on paper. These are legally binding, but the hardest to prove in court because of the lack of evidence.
The next type of debt is a written contract. This agreement is similar to oral contracts but it is on a printed document, which is signed by both parties. However, before the signing happens, both the lender and borrower should recognize the agreement as a legitimate contract and be understood by both parties to be valid. These are also legally binding and easier to prove in court. A few examples of this type of debt are automotive loans and other installation agreements.
The third type of debt is a promissory note. This is a type of written contract, where the borrower signs a written promise to repay a loan or debt under specific terms. A promissory note has more specific details on it though. It states the method of payment, how much the payment will be, the interest rate, and the full amount that is being borrowed. It may also include something called an accelerate clause, which will make the entire amount of the loan due if a payment is missed. An example of a promissory note is a mortgage.
The last type of debt is an open-ended account, also called a revolving account. This is a type of account where the consumer’s balance and monthly payment fluctuate. An open-ended account does not just close when the balance shows zero, but rather when the lender or borrower chooses to close it. A primary example of this type of debt is a credit card account.
In the state of Oklahoma, the statute of limitations for these debts, respectively, are 3 years, 5 years, 5 years, and 3 years. If you believe the time has passed on any of your debts, do not just stand by and take being harassed by debt collectors. Bring up this point in court to get your case dismissed.
Every summer, Archana works at Kumon, a math and reading workshop, tutoring children between the ages of three and 18 in these subjects. She used to be enrolled in this program herself, so this allows her to connect with the students and give them the one-on-one help that they need. Archana is also currently a member of NC State’s Psychology Club, Rotaract Club, and EKTAA (NC State’s premiere South Asian Student Organization).
Archana was born in India, and moved to North Carolina with her immediate family when she was 7 years old. She speaks mostly Tamil, the native language of South India, and English in her home. In addition, having taken Spanish classes since 6th grade, she can speak and understand it pretty well too. Archana enjoys spending time with her family and friends, watching movies, listening to music, and going to the gym. She also loves to travel, and hopes to travel the world one day and learn about all the different cultures!
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