ccbongo Posted March 17, 2005 Report Share Posted March 17, 2005 The most critical factor in collecting any debt is TIME. If too much time has passed, your rights to legally enforce the debt may have expired. Attorneys refer to this concept as "statute of limitations" or as it is called here in Louisiana, "prescription". Most debts are based either on an open account (the debtor is extended credit for goods or services ordered over a period of time) or under contract. You must file a lawsuit on an open account within three (3) years of the debtor's last purchase or last payment. A credit card account is an excellent example of what Louisiana courts consider an open account. This is true even if there is a written agreement signed by the cardholder. Promissory notes are a form of contract and have a five (5) year prescriptive period. A note payable on demand must be enforced within five years of the date the note was signed. An installment note also has five years but the period is calculated from the date each installment becomes due and has not been paid. If all unpaid, future installments are accelerated by the holder, the five year period runs from date of acceleration. Link to comment Share on other sites More sharing options...
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