If you have an old outstanding debt in Florida, you might be worried that your creditor or a collection agency will come after you. However, the statute of limitations plays a significant role in\u00a0debt collection.\u00a0In most cases, the maximum statute of limitations for Florida debt is five years, although some debts only have a statute of limitations of four. This means a creditor only has four to five years to sue you for the debt you owe.\u00a0<\/p>\n\n\n\n
A statute of limitations is a law that sets a maximum time during which a party can begin legal proceedings, such as a lawsuit, against another party. The statute of limitations typically starts from the day the event occurred. There\u2019s a statute of limitations for various offenses, including failure to pay debts. Each state can set its own statute of limitations on debt collection lawsuits. <\/p>\n\n\n\n
Generally speaking, the statute of limitations exists because evidence and the likelihood of a strong case deteriorate as time goes on. The law doesn\u2019t want to allow or reward people for inaction, so individuals are given a reasonable period when they can bring forward legal action. <\/p>\n\n\n\n
After the statute of limitations passes, debt becomes time-barred. When someone refers to \u201ctime-barred debt,\u201d it means money was borrowed and never repaid but is no longer legally collectible because the statute of limitations has passed. <\/p>\n\n\n\n
Tolled is also known as \u201cextending the statute.\u201d Debt can be tolled when a consumer takes an action that legally allows the statute of limitations to be extended.<\/p>\n\n\n\n
For example, let\u2019s say an individual ignores all communication attempts from their creditor and moves to another state because they know there\u2019s only one year left before the statute of limitations is up. In this case, the creditor can take action to toll the debt, and if the person ever moves back, the creditor gets that year back on their statute. <\/p>\n\n\n\n
In some states, debt can be tolled if the borrower admits they know about the debt or makes a partial payment. For this reason, consumers must be cautious when dealing with creditors. <\/p>\n\n\n\n
Note that tolling a statute of limitations only applies to debts with a written contract, such as a loan or credit card agreement. <\/p>\n\n\n\n
If your debt is in collections, whoever currently owns the debt can file a lawsuit against you as long as the statute of limitations hasn\u2019t passed. This means that even if your original creditor has written off the debt and passed it on to a collection agency, that agency can still take legal action within the allowable five-year statute. <\/p>\n\n\n\n
Once the statute of limitations has passed, a creditor can no longer take legal action against you. If they try to, you can file a motion to dismiss the case. The court won\u2019t have your account records, so the responsibility will be on you to prove the statute of limitations has passed. Once you can show that, your case will be dismissed. <\/p>\n\n\n\n
Note that while the creditors can\u2019t take legal action, they can still try to contact you for collection on the account, and it can still appear on your credit report. <\/p>\n\n\n\n
Be careful in engaging with your creditors, as you can accidentally reset or \u201ctoll\u201d the statute of limitations. Don\u2019t try to communicate with them about dropping the lawsuit, offering partial payments or acknowledging the debt, as this can have undesired consequences. <\/p>\n\n\n\n
Florida has one of the lowest statutes of limitations for debt in the country. The majority of states have a statute of six years. In Florida, the statute of limitations for debts is:<\/p>\n\n\n\n
The statute of limitations typically starts from the last activity on the account, whether that\u2019s a payment, a charge or a credit. <\/p>\n\n\n\n
Note that the statute of limitations only applies to legal action for consumer debts in Florida. This means a collection agency or creditor can continue to attempt to collect on the debt even past the statute\u2014they just can\u2019t file a lawsuit. <\/p>\n\n\n\n
Additionally, in Florida, making a partial payment on a debt will toll the debt, resetting the statute of limitations. <\/p>\n\n\n\n
One important distinction is that if a judgment has been entered against you in court, the statute of limitations for Florida debt expands to 20 years and will continue to accrue interest until it\u2019s paid. In some cases, creditors can have certain assets seized or wages garnished to recover what\u2019s owed.<\/p>\n\n\n\n
The debts that fall under the statute of limitations include:<\/p>\n\n\n\n
Some debts have no statute of limitations, including federal student loans and unpaid child support.<\/p>\n\n\n\n
If you\u2019re being sued for\u00a0old debt\u00a0in Florida, the first step is to figure out the date of the last activity on the account. Depending on the type of debt, you know you have a four- or five-year statute of limitations. If you feel confident that the statute of limitations has passed, don\u2019t speak with the creditor and don\u2019t make any payments. Instead, hire an attorney to review your case and file a motion to dismiss the lawsuit.\u00a0<\/p>\n\n\n\n
On the other hand, if you\u2019re being sued for an old debt but the statute of limitations hasn\u2019t passed, you\u2019ll need to come up with a plan. If the debt is accurate, the judge will likely side with the creditor. As a result, you might find that you receive a judgment, such as a wage garnishment or a lien put on your property. The total amount you\u2019ll owe may cover the original debt, as well as any interest, fees and potentially attorney fees. <\/p>\n\n\n\n
It\u2019s highly recommended that you show up to court and try to defend yourself, even if you know the debt is accurate. Showing up to court increases the chances the judge will give you a lighter penalty. <\/p>\n\n\n\n
Let\u2019s say you have debt in collections that hasn\u2019t passed the statute of limitations but you haven\u2019t been served a lawsuit, either. The important thing here is not to wait around and hope the creditor doesn\u2019t take legal action against you. Instead, it\u2019s essential to communicate with the creditor and try to rectify the situation. <\/p>\n\n\n\n
If the debt is accurate, you have a couple of options:<\/p>\n\n\n\n