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Maine Statute of Limitations on Debt
By Archana Sabesan on July 20, 2012

Maine
Oral Contract 6 years
Written Contract 6 years
Promissory Note 6 years
Open Accounts 6 years
Bush2-(2).jpgDo you keep getting calls and messages from debt collection agencies about an old debt that you thought was written off years ago? These people are called scavenger debt collectors, and are known for using illegal methods to collect time-barred debt. However, you should know that you do not have to pay debt that is considered too old by your state. This is what is called as the statute of limitations on debt.
Every state has laws governing the time in which a person can file a lawsuit to collect debt. There are four types of agreements to which the statute of limitations can apply to - oral contract, written contract, promissory note, and open-ended account - and in the state of Maine, all four have the time limit of 6 years.

An oral contract is an agreement that is made verbally. No contract is written, or signed by either party when the agreement is made. These contracts are legally binding, however they are harder to prove in court since you do not have any hard evidence (papers, signatures, etc.).

A written contract is like an oral contract, except that the agreement is printed on paper that has been signed by both the lender and the borrower. These contracts are also legally binding, and are easier to enforce than oral contracts.

The third type is a promissory note. This is a written contract that includes a specific promise to pay. It has in detail the interest rate, repayment schedule, and consequences of default. A mortgage is an example of a promissory note. The fourth, and final, type of is an open-ended account. This is an account that has a varying balance, for example, a credit card.

In conclusion, once a debt passes beyond the statute of limitations for your state (in this case, 6 years in Maine) a debt collector no longer has the right to sue you for payment. You may still have a moral obligation to pay back this debt, but you cannot be sued over it. Any debt collector who tries to get you to do so is in direct violation of the Fair Debt Collection Practices Act.
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