Acknowledgement of Debt and The Statute of Limitations
In 44 states and the District of Columbia there are specific state laws that require your acknowledgment of a debt to be in writing in order to revive or toll the statute of limitations.
This is very important information for consumers who may have otherwise thought that a verbal conversation would renew their legal exposure to being sued due to a debt collector’s claim or something they may have read on the Internet.
As this article will demonstrate, in the majority of our country, this just isn’t true.
If you have been dealing with a debt collector that is claiming otherwise, in an effort to leverage this misinformation against you, please feel free to utilize the chart below that links to each state’s specific law regarding this.
In most states, the requirement to acknowledge a debt and revive or extend the statute of limitations is dependent upon you making a written promise to pay with your signature included.
In some states, this written acknowledgement and promise to pay alone will not renew the statute of limitations. These particular states also require that a payment is made as well.
In a few states, acknowledging the debt with a refusal to pay will renew the statute of limitations.
It is also important that you understand, in virtually every state, you will renew the statute of limitations when making a payment. However, in some states you will not renew the statute of limitations if the payment is made after the statute of limitations originally expires.
If you are dealing with debt collectors, preparing to buy a home, or if you just want to clean up your credit report, I can’t emphasize enough, how vital it is, for you to become familiar with your state’s specific law regarding this so you have a firm understanding of what will and won’t expose you.
In the 6 states that don’t clearly define a written requirement in their law, I highly recommend that you reach out to an attorney to become familiar with these state’s particulars. There is some case law for these particular states. However, you should reach out to an attorney who is qualified to decipher the case law so you may gain the accurate information that you are looking for.
If you would like expert help with negotiating with your debt collectors, please feel free to contact me. I’m a small one-man company, so you will be working directly with me. I charge no upfront fees and my fee is based on a small percentage of the money that I save you.
However, before you decide that settling your debt makes sense, please read through my 4-part series about how debt settlement really works. This series is designed to help you learn the pitfalls that you probably wouldn’t know to think about.
I hope this information about acknowledgement of debt and the statute of limitations helps you. Please feel free to comment below with any questions or comments.
Please understand that this article and the links that it contains are for information purposes only and should not be relied upon. It is always advisable to consult an attorney previous to moving forward when dealing with such things.
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|State||Verbal Acknowledgment||Written Acknowledgment|
|Alaska||No||Yes – See 09.10.053|
|California||No||Yes – See 360|
|Connecticut||No||Yes – See 52-576 – 136 C. 187|
|Delaware||No||Yes – See 8109|
|Florida||No||Yes – See 95.04|
|Hawaii||Consult an attorney||Yes – See 18 H. 569; 23 H. 696|
|Kentucky||Consult an attorney||Yes|
|Maryland||Consult an attorney||Consult an attorney|
|Nevada||No||Yes – See 11.390|
|New Hampshire||No||Yes – See 382-A:3-103 Para 9|
|North Carolina||No||Yes – See 1-26|
|North Dakota||No||Yes – See 28-01-36|
|Oklahoma||No||Yes – See 12-101|
|Oregon||No||Yes – See 12.230|
|Pennsylvania||Consult an attorney||Consult an attorney|
|Rhode Island||Consult an attorney||Consult an attorney|
|South Carolina||No||Yes – See 15-3-120|
|Tennessee||Consult an attorney||Consult an attorney|
|Texas||No||Yes – See 16.065|
|Vermont||No||Yes – See 591|
|West Virginia||No||Yes – See 55-2-8|
|Wisconsin||No||Yes – See 893.45|
|Wyoming||No||Yes – See 1-3-119|