Louisiana Statute of Limitations on Debt Collection
Creditors have a limited period of time in which to file suit
over an unpaid debt. Each type of debt has a specific time
period in which a lawsuit can be filed against someone who owes a
debt, so that the one who is owed can obtain a judgment. The
judgment allows one to pursue assets and wages, and force payment
through involuntary means.
That limited time period is known as the statute of
limitations. Once that limitation period passes, and no
lawsuit was filed, the debt does not need to be paid by the
consumer. As a rule of thumb, a creditor relinquishes its
right to file suit and collect a debt that it is owed after this
time period has expired.
In Louisiana, the statute of limitations for contracts whether
oral or written is 10 years.
Open accounts, like credit card agreements have a much shorter
statute of limitations period of 3 years as do lawsuits, which are
filed but not pursued. Judgments both domestic (in state) and
foreign (out of state) have a limitations period of 10 years and if
not the judgment is not renewed within the ten years, it becomes a