The Indiana Court of Appeals recently concluded that creditors pursuing monies owed to them pursuant to an agreement must do so within six years of either the last payment or the date the last payment was due. The specific case involved a credit card holder. The court examined the credit card agreement in Jason Smither vs. Asset Acceptance, LLC and held that these types of agreements for lines of credit are contracts. As such under Indiana law, a lawsuit must be filed within six years of the breach of contract. If the creditor fails to do so, it has waived its opportunity to pursue the debtor for the debt.
If you have any questions about your attempts to collect an outstanding accounts receivable or monies due to you under (more…)