When you owe a debt in New Jersey, including consumer and business debts, it is critical to have a clear understanding of the amount of time that the creditor can chase you for the debt or the length of time that a debt collector can pursue you in order to collect the debt. The length of time that a party can legally be chased for debt in New Jersey concerns the statute of limitations on the particular type of debt or the specific type of contract that resulted in you or your business owning the debt. Generally speaking, once the clock on the statute of limitations runs out, you cannot legally be chased for debt in New Jersey, but it is critical to understand that there are various ways in which a debtor can unknowingly restart the clock on their debt.
If you have any questions at all about handling a debt, or you need more information about the statute of limitations on NJ collections for a specific debt, it is essential to get in touch with an experienced NJ collections attorney who can provide you with additional information.
Understanding the Statute of Limitations
To understand how long you can legally be chased for debt in New Jersey, it is important to understand how a statute of limitations works and how it applies to debt collections. For every type of debt collection in New Jersey, there is a specific statute of limitations (and, in fact, there is a statute of limitations on nearly every type of civil claim that a party may be able to file). The statute of limitations is a specific time limit for taking a particular type of civil action. Generally speaking, when statutes of limitations are discussed, parties often refer to the “clock” on the statute of limitations.
For each statute of limitations, there will be a “clock” or time limit, and that clock will start to “tick” on the date that a contract is signed, for example, or another action occurs that starts the clock. The action that starts the clock will be specified in New Jersey law. There are only limited circumstances in which a clock on a statute of limitations can be paused (known as “tolled”), and parties should never assume that the statute of limitations has been tolled unless they have discussed the case with an attorney. Once the clock on a statute of limitations runs out, any potential claim becomes time-barred. In terms of debt collections, once a debt collection claim is time-barred, a creditor cannot file a lawsuit in order to seek a judgment to recover the debt. However, there are circumstances in which a debtor can restart the clock (often unknowingly) on a statute of limitations, which we will explain in more detail below. Once the clock runs out, a creditor or debt collector cannot legally chase the debt in court.
Statutes of Limitations for Different Types of Debt Collections in NJ
For most types of debts in New Jersey, the statute of limitations is six years. However, the statute of limitations is 20 years on judgments, and there are other specific types of debts that may have a different statute of limitations. To determine the specific statute of limitations associated with a particular debt, you should have a New Jersey collection lawyer assess your case.
Restarting the Clock on the Statute of Limitations
There are different ways in which a debtor might unknowingly restart the clock on the statute of limitations, giving a creditor or debt collector another length of time to chase the debt and file a lawsuit against the debtor. In general, the clock might restart, thereby reviving the debt, if the debtor does one of the following:
- Makes a payment;
- Agrees to pay the debt or a portion of it;
- Sets up a payment plan; or
- Makes another charge on the account.
Contact a New Jersey Collections Attorney Today
If you have any questions about debt collections and statutes of limitations in New Jersey, it is essential to seek advice from an experienced collection attorney in NJ. At Snellings Law LLC, we know how complicated it can be to determine the statute of limitations for a specific debt and to understand how the clock on the statute of limitations can be restarted for various types of debts. Whether you need assistance determining whether you can continue to collect on a debt in New Jersey lawfully, or if you have questions about whether a creditor or debt collector can continue to chase you for debts, our firm can help. Contact Snellings Law LLC today for more information.