Missouri is one of many states in the United States that have laws governing the statute of limitations for debts. The statute of limitations refers to the time period within which a creditor can legally sue a debtor for an outstanding debt. After the statute of limitations has passed, the creditor can no longer sue the debtor for that particular debt. In this article, we will explore the Missouri statute of limitations for debts in detail, people also tend to compare bankruptcy vs debt settlement.

What is the Missouri Statute of Limitations for Debts?

In Missouri, the statute of limitations for debts is five years. This means that a creditor has five years from the date of default (the date when the borrower first failed to make a payment) to file a lawsuit against the debtor. If the creditor fails to file a lawsuit within this time period, the debt becomes time-barred. Once a debt is time-barred, the creditor loses the right to take legal action against the debtor to collect the debt.

It is important to note that the statute of limitations for debts in Missouri varies depending on the type of debt in question. Here are some examples:

• Written contracts: The statute of limitations for written contracts in Missouri is five years.
• Oral contracts: The statute of limitations for oral contracts in Missouri is five years.
• Promissory notes: The statute of limitations for promissory notes in Missouri is ten years.

It is also worth noting that the statute of limitations clock starts ticking from the date of default, not from the date of the last payment made on the debt. This means that even if a debtor makes a partial payment on the debt after default, the statute of limitations clock does not reset.

Can Debt Collectors Still Contact You After the Statute of Limitations Has Passed?

Even after the statute of limitations has passed, debt collectors may still attempt to collect the debt from you. However, they cannot sue you for the debt. If a debt collector contacts you about a time-barred debt, they must disclose that the debt is time-barred and that they cannot sue you for it. Debt collectors are also prohibited from using deceptive or unfair practices to collect debts, even if the debt is not time-barred.

If a debt collector violates these rules, you may be able to file a lawsuit against them. It is important to note that if you make a payment on a time-barred debt, the statute of limitations clock may reset. This is because making a payment on a time-barred debt can be seen as an acknowledgment of the debt and can restart the clock.

What Happens If a Creditor Sues You After the Statute of Limitations Has Passed?

If a creditor sues you after the statute of limitations has passed, you can raise the statute of limitations defense in court. This means that you can argue that the creditor’s claim is time-barred and that they cannot sue you for the debt. If the court agrees with you, the case will be dismissed and the creditor will not be able to take legal action against you for that particular debt.

It is important to note, however, that if you do not raise the statute of limitations defense in court, the creditor may still be able to obtain a default judgment against you. A default judgment is a court judgment awarded to the plaintiff (the creditor) when the defendant (you) fails to appear in court or respond to the lawsuit. If a default judgment is obtained against you, the creditor can use it to garnish your wages or bank accounts.

How Can You Protect Yourself From Time-Barred Debts?

There are several steps you can take to protect yourself from time-barred debts:

1. Keep records of all your debts: Keeping accurate records of your debts can help you keep track of when the statute of limitations for each debt expires. This can help you avoid paying a time-barred debt or being sued for one.
   
2. Don’t make promises to pay: If you cannot afford to pay a debt, do not make promises to pay it in the future. Making promises to pay can reset the statute of limitations clock and make you vulnerable to legal action by the creditor.
   
3. Consult with an attorney: If you are being harassed by debt collectors or are unsure about your legal rights and options, consult with an experienced debt collection attorney. An attorney can help you understand your rights and options and can represent you in court if necessary.
   

Conclusion

Understanding the Missouri statute of limitations for debts is important for anyone who has outstanding debts or is being pursued by debt collectors. By understanding the law and your legal rights, you can protect yourself from time-barred debts and the legal consequences that come with them. If you are unsure about your legal rights and options regarding a particular debt, consult with an experienced debt collection attorney who can provide you with guidance and representation.

FAQs

What is the definition of statute of limitations for debt?

Statute of limitations for debt refers to the time period within which a creditor can legally file a lawsuit against a debtor to collect a debt.

What is the statute of limitations for debt in Missouri?

The statute of limitations for debt in Missouri is five years for most types of debt.

Is the statute of limitations for debt the same for all types of debt in Missouri?

No, the statute of limitations for debt can vary depending on the type of debt. For example, the statute of limitations for written contracts is ten years in Missouri.

When does the clock start ticking for the statute of limitations for debt in Missouri?

The clock starts ticking for the statute of limitations for debt in Missouri from the date of the last payment or activity on the account.

Can a creditor still attempt to collect a debt after the statute of limitations has expired in Missouri?

Yes, a creditor can still attempt to collect a debt after the statute of limitations has expired in Missouri, but they cannot file a lawsuit to collect the debt.

Can a creditor restart the clock on the statute of limitations for debt in Missouri?

No, a creditor cannot restart the clock on the statute of limitations for debt in Missouri by accepting a partial payment or making an agreement with the debtor.

What happens if a creditor files a lawsuit after the statute of limitations has expired in Missouri?

If a creditor files a lawsuit after the statute of limitations has expired in Missouri, the debtor can raise the statute of limitations as a defense and the case will likely be dismissed.

What is the impact of the statute of limitations for debt on a debtor’s credit report in Missouri?

The statute of limitations for debt does not impact a debtor’s credit report in Missouri. The debt can still appear on the report, but the creditor cannot legally collect on it through a lawsuit.

Can a debt collector continue to contact a debtor after the statute of limitations has expired in Missouri?

Yes, a debt collector can continue to contact a debtor after the statute of limitations has expired in Missouri, but they cannot threaten legal action or take any action to collect the debt.

What should a debtor do if they believe a debt is past the statute of limitations in Missouri?

If a debtor believes a debt is past the statute of limitations in Missouri, they should consult with an attorney to understand their rights and options. They may also want to request validation of the debt from the creditor to confirm the date of the last payment or activity on the account.

Glossary

• Statute of Limitations – A law that sets a time limit on when legal action can be taken.
• Debt – Money owed by one party to another.
• Missouri – A state located in the Midwestern region of the United States.
• Creditors – An entity to whom you owe money.
• Collection Agencies – Companies hired by creditors to collect debts.
• Consumer Credit Protection Act – A federal law that regulates debt collection practices and protects consumers.
• Default – Failure to repay a debt as per the agreed-upon terms.
• Written Contract – A legally binding agreement between two or more parties that is documented in writing.
• Oral Contract – A legally binding agreement between two or more parties that is not documented in writing.
• Promissory Note – A written promise to pay a debt.
• Revival – A process by which a debt can be brought back to life after the statute of limitations has expired.
• Affirmative Defense – A legal defense that allows a defendant to avoid liability even if the plaintiff’s claim is true.
• Fraud – Deception or misrepresentation for personal gain.
• Unjust Enrichment – A legal principle that prevents one party from benefiting at the expense of another without justification.
• Garnishment – A legal process by which a creditor can collect debts owed by a debtor through wage or bank account seizures.
• Bankruptcy – A legal process by which a debtor’s assets are liquidated to repay creditors.
• Exemptions – Assets that are protected from being seized by creditors during bankruptcy.
• Judgment – A legal decision made by a court of law.
• Default Judgment – A judgment made against a defendant who fails to respond to a legal summons or complaint.
• Discovery – The process by which both parties exchange information before a trial.