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Introduction
Statute of limitations is the time limit for a creditor to sue a debtor for an unpaid debt. Once the statute of limitations has expired, the creditor cannot successfully sue the debtor for non-payment of the debt. The statute of limitations on debt varies from state to state, and in this article, we will focus on the statute of limitations on debt in Tennessee.
Statute of Limitations on Debt in Tennessee
The statute of limitations on debt in Tennessee varies depending on the type of debt. The following are the various types of debt and the corresponding statute of limitations in Tennessee:
1. Written Contracts: The statute of limitations on written contracts in Tennessee is six years. This includes credit card debts, personal loans, and any other debts that are based on a written agreement.
2. Oral Contracts: The statute of limitations on oral contracts in Tennessee is three years. This includes debts that are based on verbal agreements, such as personal loans from family members or friends.
3. Promissory Notes: The statute of limitations on promissory notes in Tennessee is six years. This includes debts that are based on promissory notes, such as mortgages or car loans.
4. Open Accounts: The statute of limitations on open accounts in Tennessee is three years. This includes credit card debts and any other debts that are not based on a written agreement but are considered open accounts.
5. Judgments: The statute of limitations on judgments in Tennessee is ten years. Once a creditor obtains a judgment against a debtor, they have ten years to collect the debt owed.
It is important to note that the statute of limitations clock starts ticking on the day that the debt becomes due. So, for example, if you missed a payment on a credit card debt in January 2015, the statute of limitations would start on that date.
Consequences of an Expired Statute of Limitations
When the statute of limitations expires, the creditor cannot sue the debtor for repayment of the debt. If the creditor tries to sue the debtor after the statute of limitations has expired, the debtor can raise the defense of the statute of limitations, and the court will dismiss the case. However, it is important to note that even if the statute of limitations has expired, the debt still exists, and the debtor can still be contacted by the creditor. The creditor can still send letters requesting payment of the debt, but they cannot take legal action against the debtor.
Exceptions to the Statute of Limitations in Tennessee
While the statutes of limitations are strict for most debt in Tennessee, there are some exceptions that extend the limitation period. The following are the exceptions:
1. Minority: If the debtor is under 18 years old, the statute of limitations will not apply until the debtor turns 18.
2. Disability: If the debtor is disabled, the statute of limitations will not apply during the period that the debtor is disabled.
3. Fraud: If the creditor can prove that the debtor committed fraud, the statute of limitations will not apply.
4. Acknowledgment: If the debtor acknowledges the debt by making a partial payment or committing to paying the debt in writing, the statute of limitations will start again.
Frequently Asked Questions (FAQs)
1. Can creditors still contact me after the statute of limitations has expired?
Yes, creditors can still contact you after the statute of limitations has expired, but they cannot take legal action against you.
2. What should I do if a creditor sues me after the statute of limitations has expired?
If a creditor sues you after the statute of limitations has expired, you can raise the defense of the statute of limitations in court, and the case will be dismissed.
3. Can a creditor garnish my wages after the statute of limitations has expired?
No, a creditor cannot garnish your wages after the statute of limitations has expired.
4. Will the statute of limitations restart if I make a partial payment?
Yes, if you make a partial payment, the statute of limitations will start again from the date of the partial payment.
Conclusion
Understanding the statute of limitations on debt in Tennessee is essential for debtors to protect themselves from harassment by creditors. Debtors should be aware of the different types of debt and the corresponding statute of limitations to avoid falling into debt traps. If you have unpaid debt, it is essential to understand your rights and the options available to you. It is always advisable to seek legal advice if you are uncertain about your rights and options.
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Article Summary:
The statute of limitations on debt in Tennessee varies according to the type of debt. Written contracts, including credit card debts and personal loans, carry a six-year statute of limitations, while oral contracts have a three-year limit. Promissory notes, such as mortgages or car loans, also have a six-year statute of limitations. The expiration of the statute of limitations prevents creditors from suing the debtor for non-payment. Exceptions to the statute of limitations include disability, fraud, and partial payment or written acknowledgment of debt by the debtor. Creditors can still contact debtors after the statute of limitations has expired, but they cannot take legal action.
