Is There a Statute Of Limitation For Debts?

: Reese Baker & Associates

  Filed under: Debt

limitWhen you are filing for bankruptcy it doesn’t matter whether it’s a Chapter 13 or Chapter 7 you have a lot of information that you must provide to the bankruptcy courts. You have to give a list of all of your debtors that you want included in your Houston bankruptcy. The rules are different for the Chapter 7 and Chapter 13, and it first has to be determined what you are eligible for.

Asking The Right Questions

One of the questions that often is raised is if there is a statute of limitation for debts? Some individuals owe money to a debtor that they have not paid on for several years and the creditor has not made any steps to take action against them. The statute of limitations varies from state to state and the particular circumstances of the debt itself. This is just one of many reasons why you really need to rely on professional services as you want to make sure that all of your applicable a debts are going to be included in your bankruptcy action.

The type of debt is in important and when trying to determine the statute of limitations as for example a credit card which is a revolving accredit, it may have a longer statute than a promise very note made. In your Chapter 13 bankruptcy you were going to have a repayment plan that you have to follow.

You most certainly do not want to leave a debts out that you are responsible for that could crop up and put extra pressure on you for payment that is going to interfere with your current repayment plan. In the case of a Chapter 7 bankruptcy it could be that this particular debt will end up getting discharged which will bring a closure to the debt. If it is not brought into the bankruptcy there is a good chance you could still be obligated to pay it particularly if the statute of limitation does not apply to it.