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The Missouri Statute of Limitations Debt: Understanding Your Rights
Debt can run up on anyone regardless of age, race, or financial standing. It can all start with a simple credit card purchase or a personal loan, but if left unattended, it can snowball into an overwhelming amount that becomes impossible to repay. The laws surrounding debt can be complicated and stressful to navigate, especially when a creditor is attempting to collect it from you. In Missouri, there is a statute of limitations on debt, which means you have a certain amount of time to pay off your debts before they become unenforceable. Knowing your rights and the laws surrounding debts is essential if you are dealing with a collection agency, or you want to know your options.
What Is the Statute of Limitations on Debt in Missouri?
The statute of limitations on debt in Missouri is the amount of time in which a creditor can take legal action against you. The clock starts ticking from the last payment or default date, and they have a specific period to sue you for the debt. Once the statute of limitations is over, the debt becomes time-barred, which means the creditor can no longer attempt to collect the debt through the courts. You can still be contacted by a debt collector, but they cannot threaten or coerce you to pay the debt.
The statute of limitations for different types of debt in Missouri is as follows:
1. Written contracts: 10 years
2. Oral contracts: 5 years
3. Promissory notes: 10 years
4. Open-ended credit accounts (credit cards, line of credit): 5 years
5. Consumer debts (medical bills, utility bills, etc.): 5 years
What Happens If Someone Tries to Collect a Debt That Has Passed the Statute of Limitations?
If a debtor tries to collect a debt that has passed the statute of limitations, they can be sued for violating Missouri’s Fair Debt Collection Practices Act. It is illegal for debt collectors to threaten, harass, or mislead you in any way to collect a debt that is time-barred. If you receive a collection call or a letter for a debt that has passed the statute of limitations, you should inform the collector that the debt is no longer enforceable. You can send a written cease and desist letter to the collector and ask them to stop contacting you. It is important to keep track of all communication, including phone calls and letters, as evidence if a lawsuit is filed against you.
Can the Statute of Limitations Be Restarted?
The statute of limitations can be restarted if you make a payment on a time-barred debt or acknowledge the debt in writing. If you make any payment, even a small amount, on a time-barred debt, the clock starts ticking from the date of the payment. The same applies if you admit to owing the debt in writing, such as an email or letter. It is important to be cautious when communicating with debt collectors and not give them any reason to assume that the statute of limitations has been restarted.
What Are My Options If I Cannot Pay My Debt?
If your debt is still within the statute of limitations, the best option is to communicate with your creditors and negotiate a payment plan. You can request reduced interest rates or ask for an extension on the payment deadline. If you are unable to make the payments, you can consider debt consolidation or hiring a debt settlement company. Debt consolidation involves taking out a loan to pay off your debts, while a debt settlement company negotiates with your creditors to settle the debt for less than the full amount owed. It is crucial to research debt settlement companies thoroughly and only work with reputable ones.
If the statute of limitations has passed, you are under no legal obligation to pay the debt. However, if you want to remove the negative impact on your credit report, you can try to negotiate a settlement with the creditor. You can offer a lump-sum payment or negotiate a payment plan that works for you. It is essential to make sure that the creditor agrees to remove the negative mark on your credit report in exchange for the payment.
Conclusion
The Missouri statute of limitations on debt can be complex and confusing, but it is essential to understand your rights as a debtor. Knowing the specific statute of limitations for different types of debt can be significant, especially when dealing with a debt collector. If a collection agency attempts to collect a time-barred debt, they can be sued for violating the Missouri Fair Debt Collection Practices Act. If you are unable to pay your debts, you can negotiate a payment plan, consider debt consolidation or settlement. It is crucial to know your options and research before making any decisions.
FAQs
1. What is the statute of limitations on a personal loan in Missouri?
The statute of limitations for a personal loan in Missouri is ten years.
2. Can a debt collector sue me after the statute of limitations has passed?
No, a debt collector cannot sue you after the statute of limitations has passed. Debt collectors can still pursue the debt, but they cannot file a lawsuit against you.
3. Can the statute of limitations be extended?
The statute of limitations cannot be extended, but it can be restarted if the debtor makes a payment or acknowledges the debt in writing.
4. Will the statute of limitations on a debt start from the day I pay it off?
No, the statute of limitations starts from the date of the last payment or default, not the date you paid it off.
5. Can a creditor garnish my wages?
Yes, a creditor can garnish your wages if they obtain a judgment against you. However, they cannot garnish wages for a debt that has passed the statute of limitations.
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Article Summary:
In Missouri, the statute of limitations on debt varies depending on the type of debt, ranging from five to ten years. After the time limit has elapsed, the debt becomes time-barred, and the creditor can no longer pursue legal action to recover the debt. Debt collectors are not allowed to threaten, harass or mislead consumers into paying time-barred debts. The statute of limitations can be restarted if the consumer acknowledges the debt in writing or makes even a small payment on a time-barred debt. Consumers can negotiate a payment plan or consider debt consolidation or debt settlement if they cannot repay their debts.
