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 nullity.