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Statute of Limitations on Debt in New Jersey

By Archana Sabesan on February 11, 2013

New Jersey
Oral Contract	6 years
Written Contract	6 years
Promissory Note	6 years
Open Accounts	6 years

A statute of limitations on debt is a law that states the maximum time limit a creditor has to file a lawsuit against a consumer because of an unpaid debt. If you were never aware of this, it would definitely be beneficial to read through this article as well as others to get the information that you may need. This article deals specifically with the statute of limitations set in the state of New Jersey.

If a creditor could file a lawsuit at any given time, the court system would probably be overflowing with cases. It also protects debtors from a surprise lawsuit for a debt that they stopped receiving bills for years before. This does not mean that your debt just vanishes when the time limit runs out. Your debt still exists, but you are just no longer legally required to pay it off.

There are four types of debt that have a statute attached to them: oral contracts, written contracts, promissory notes, and open-ended accounts. Oral contracts are those made verbally, with neither party having to sign or write down anything on paper. However, they are still legally binding. Written contracts are agreements made on paper, and signed by both parties. Promissory notes is a type of written contract, but includes specifics about method of payment, interest rate, how much the payments will be, etc. Open-ended accounts are those that have a varying, revolving balance. An example would be a credit card account.

In the state of New Jersey, the statute of limitations on all four of these debts is 6 years. If you believe the time has passed on any of your debts, you can bring it up while in court to help get your case dismissed. However, there are some tips you should keep in mind if you ever find yourself in this situation.

Remember to never ignore a lawsuit just because you believe the statute has run out. If a creditor has asked you to come to court, you can't just not go. You still have to show up, but you can use the argument that the statue of limitations has run out on your debt as a valid reasoning to get your case dismissed. Also, make sure that you do not make any promises or acknowledge that you will pay a debt that is beyond the statute of limitations. Even if you make a very small payment, you are still at a risk of starting the whole statutory period over again.

Make sure you do your research and always keep yourself updated about this information. Knowing when the statute of limitations ends can come in handy!

Do you live in a state other than New Jersey?

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