Most businesses do not want a delinquent commercial account on their record, nor do they yearn to file a lawsuit to collect money. It is critical, however, that commercial debt collection be handled efficiently and with speed to ensure that a business does not suffer financially or have its reputation tarnished because of unpaid accounts. Indeed, filing a commercial collections lawsuit is often the final – and critical – step in collecting monies owed.
In many cases, and certainly given our current economic climate, the longer a business waits on collecting from debtors who have failed to fulfill their commitments, the more difficult it can be to obtain the entirety of what is owed. We want to help you collect all that is rightfully yours.
Recovering the Funds You are Rightfully Owed
Companies who have entered into a loan agreement have legal obligations to fulfill when it comes to paying back short-term loans, long-term bonds, mortgage loans, and other financial agreements with creditors. However, do to various reasons, sometimes the debtors fail to keep current on their payments. Many businesses try to keep the debt collection process in-house, sending emails and reminders, to no avail. At some point, legal recourse is critical.
Statute of Limitations for Debt Collections
So, what is the statute of limitations for debt? The answer is… it depends. The length of time varies from state to state and in some cases depends on the type of contract. Generally speaking, California has a statute of limitations of four years for all debts except those made with oral contracts. For oral contracts, the statute of limitations is two years.
With the increase in interstate and international commerce there can be some gray area as to whether the statute of the state (or country) where the debt was incurred is followed or whether it should be the statute of the state (or country) where the debtor lives. If you have a debt that crosses state (or national) lines, you should consult with an experienced collections lawyer who understands the nuances of commercial collections law.
To discuss your potential case, contact our experienced collections attorneys today.