California Statute of Limitations on Debt Collection

A statute of limitation is a law that is different for each state and this law establishes a set time limit from when a breach of contact happens to when a lawsuit can be filed to force the debt to be paid. Breach of contract is a very common type of claim in a lawsuit. For contract cases, the statute of limitation will start after the contract has been broken (when the consumer is not paying the debt). The ultimate breach happens after the account has been delinquent for 180 days. Before a consumer agrees to pay off their debt, they should check what the statute of limitations is for their state to ensure that the debt is still due and payable. In California:

• Oral agreements: 2 years.
• Written agreements: 4 years

If the debtor makes a payment on their account after the limitations period has expired, the statute of limitation will end.

If you want to get any more information or if you have questions about the Statute of Limitations in California, contact The Consumer Advocacy Center at 312-782-5808.