What is the New Jersey Statute of Limitations for debt?

Answer 1

Statute of Limitations

A statute of limitations is a law that sets forth the maximum period of time, after certain events, that legal proceedings based on those events may be initiated. For debt, the statutes of limitation apply to the maximum period of time after a consumer has become delinquent on their payments. The key point to remember is that you are considered delinquent not from the date of your last payment, but rather the day after you have gone past due. In other words, if you made your last payment on 3/3/03 and your next payment was due the same day of the next month, the statute of limitations on the debt would not start running until 4/4/04. The statutes of limitations vary from state to state and depend on the type of debt and where the original transaction took place (i.e. if you took the loan out in California but currently live in New Jersey, the applicable statutes of limitations would be California's.)

Oral Agreements: 6 years

Written Contracts: 6 years

Promissory Notes: 6 years

Open Accounts (credit cards): 6 years

New Jersey Statutes of Limitation Laws:Conversion of an instrument for money: 3 years, (N.J.S.A.12A: 3-118(g)).

Sale of goods under the UCC: 4-years, (N.J.S.A. 12A; 2-725).

Real or personal property damage, recovery and contracts not under seal: 6 years (N.J.S.A. 2A: 14-1).

Demand Notes when no demand is made: 10 years. If demand made: 6 years from date of demand, (12A: 3-118(b)).

Obligations under seal for the payment of money only, except bank, merchant, finance company or other financial institution: 16 years, (N.J.S.A. 2A: 14-4) actions for unpaid rent if lease agreement is under seal, (N.J.S.A. 2A: 14-4).

real estate: 20 years, (N.J.S.A. 2A: 14-7); Judgments: 20 years, renewable, (2A: 14-5); Foreign judgments: 20 years (unless period in originating jurisdiction is less), (2A: 14- 5).

Unaccepted drafts: 3 years from date of dishonor or 10 years from date of draft, whichever expires first, (12A: 3- 118(c)).

Answer 2

It varies in some states based on the type of instrument that creates the debt. However, New Jersey has set a single rule for all types. Written agreements, including Promissory notes, Oral agreements and open ended accounts (credit cards) are all set at 6 years.

Answer 3

Credit Card debt is considered an Open Line of Credit. The Statute of Limitations for collection in New Jersey is 6 years. That is usually from the last use or payment.

Answer 4

Credit Card debt is considered an Open Line of Credit. The Statute of Limitations for collection in New Jersey is 6 years. That is typically measured from the last use or payment.

Answer 5

6 years