When an individual is in debt, they will do pretty much everything to keep the creditor away. They may even begin contemplating the worst-case scenario – filing lawsuits to keep the creditor at bay. And sometimes, they might just sit back and buy time.
While simply sitting back and doing nothing will not wipe away the debt in question, it can bar a creditor after some time. This is because Florida, just like the other states, has a statute of limitations on debt.
Understanding Florida statute of limitations on debt
The statute of limitations on debt in the Sunshine State is typically five years. Basically, this means that once the five-year period runs out, you may not pursue the debtor to recover the debt in question. Do keep in mind, however, that this only applies to debts that have written agreements. Some of the exceptions to the five-year statute of limitations rule include:
- Debt that results from civil lawsuits like personal injury and property damage as well as those that had no written agreements. The statute of limitations for these debts is four years.
- Debts that result from fraudulent actions. These debts have up to 12 years to settle.
- Debts resulting from tax liens or unpaid property tax. These days have up to 20 years to settle.
- Debts resulting from unpaid alimony and child support have no statute of limitations.
So when does the clock begin to tick?
The statute of limitations begins on the date the debt was incurred (in the case where a signed agreement exists) if the debtor has made any payment or when the debtor made their last payment. And if the debt arises from a successful civil lawsuit, the statute of limitations kicks off the day the injury happened.
Protecting your rights
Debt recovery can be tricky business. Learning more about Florida’s limitations on debt collections can help you protect your rights and interests while recovering what you are rightfully owed.