Q: Statute of limitations on debt in California
A:
In California, the statute of limitations on debt varies depending on the type of debt involved. For written contracts, including most types of loans and credit agreements, the statute of limitations is four years. This means that if a creditor or debt collector wants to file a lawsuit to collect on the debt, they must do so within four years from the date the contract was breached, or the date of the last payment, whichever is later.
For oral contracts, where the agreement was not put in writing, the statute of limitations is shorter, at two years. It's important to note that the clock on these statutes of limitations can be paused or "tolled" under certain circumstances, such as if the debtor leaves the state.
Knowing the statute of limitations on your debt is crucial because if a creditor or debt collector files a lawsuit after the statute of limitations has expired, you can use it as a defense in court. However, the expiration of the statute of limitations does not eliminate the debt; it only limits the legal remedies available to creditors for collecting the debt. If you're dealing with debt collection efforts for old debts, it may be beneficial to discuss your situation with a legal professional to understand your rights and options.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
