That’s exactly what happened in a case decided by the New York Court of Appeals, the state’s highest court, which allowed the three year statute of limitations in Delaware to apply rather than New York’s six years in a credit card debt case because the bank that issued the credit card was located in Delaware. If you need to find out when the SOL on a debt has expired, do the following: Take the date cause of action begins (date of last payment or demand letter): Add the number of years of the statute of limitations in your state. So how long the statute of … You have three years to collect to recover chattels, or personal property other than real estate; damages for injury to personal property; or damages for malpractice claims other than medical or dental malpractice under section 214. The statute of limitations period is different from the credit reporting time limit. Once the statute of limitations expires, the creditor can continue to ask the debtor for payment, but can't legally enforce collection of the debt. Generally, the statute of limitation begins when you last made a payment, but it can also be the date you last used the account, made a promise to pay, entered a payment agreement, or even acknowledged liability for the debt. The statute of limitations on debt incurred on a store-specific card, such as those issued by Sears or Walmart, is four years. Finally, creditors and debtors should pay attention to how the statute of limitations is computed, which is covered by Section 203 of the CPLR. This is known as the accrual date. Statutes of limitations can be complicated, especially as they relate to debt, so here’s what you need to know in order to make the best choices for your unique circumstances. Once a debt passes beyond the statute of limitation in your state, a debt collector no longer has the right to sue you for payment. Since Discover Bank is a Delaware Corporation, a 3 year statute of limitations would apply to your New York Discover Bank credit card debt, even if your credit card debt is transferred to a local third party debt collector, such as Portfolio Recovery Associates, LLC. If a creditor does file a lawsuit after the statute of limitations is up, the debtor can cite that as an affirmative defense and ask the court to dismiss the case. Lainie Petersen writes about business, real estate and personal finance, drawing on 25 years experience in publishing and education. A good attorney. Failure to start a legal action within the prescribed time period usually means that the plaintiff (the party bringing the lawsuit) has permanently lost the right to sue. There are 50 of them — one for each state, and they’re all very different. In this video we explain how long the statute of limitations for a debt is in New York. Among the budget’s provisions is one that reduces the statute of limitations from six years to three years for collections lawsuits on medical debt. ^Prior to 2012, all categories of debt in Ohio had a 15-year statute of limitations. Proc. W A Harriman Campus, Albany NY 12227 www.tax.ny.gov Technical Memorandum TSB-M-11(10)C TSB-M-11(10)I TSB-M-11(11)M TSB-M-11(3)MCTMT TSB-M-11(4)R TSB-M-11(15)S All Taxes September 9, 2011 20-Year Statute of Limitations to Collect Tax Liabilities This memorandum explains the recently enacted legislation that amends the The statute of limitations is simply a rule that sets a deadline for somebody to file a lawsuit or, in criminal law, to charge someone with a crime. The Consumer Finance Protection Bureau (CFPB) defines the statute of limitations on debt as “the limited period of time creditors or debt collectors have to file a lawsuit to recover a debt.” If you’re delinquent on certain types of debt and the statute of limitations on that debt runs out, it’s considered time-barred debt. If you’re not sure whether a debt’s statute of limitations has expired, consult a consumer law attorney or nonprofit credit counselor. In debt cases, it’s used as a defense to avoid a judgment ordering the debtor to pay up. All people are equal before the law. New York debt relief programs. A statute of limitations is the limited period of time creditors or debt collectors have to file a lawsuit to recover a debt. A few states follow the IRS standards while others have more or less time to collect. The State of New York has 20 years from the date a warrant could have been filed to collect on a tax debt. That law still applies to debt incurred in 2012 or earlier. 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