Illinois statute of limitations on debt

Q: Can you please spell out Illinois statute of limitations on debt? What is the statute, the times and what is what.
A: I will try ... if I got the question correct, you want also the types of debt described. First thing first - statute of limitations on debt limits the time you can be sued for a debt. In Illinois, the latest statutes are as follows - oral contract is 5 years, written contract is 10 years, promissory note is 6 years and open-ended account is 5 years. As far as defining what exactly each debt type means, Illinois statute of limitations is quite similar to other states.
Oral contract is a verbal agreement with no contract written or signed when the agreement was made. While it is legally binding, an oral contact is harder to prove in court.
Written contract is a printed or written document that is signed by both the lender and the borrower. Written contracts are legally binding and easy to enforce.
Promissory note is a written contract with a specific promise to pay. The promissory notes includes the interest rate, repayment schedule, and consequences of default. Mortgage is the best example.
Open-ended account is an account with a varying, revolving balance. Credit card agreement is an open-ended account
Fri Nov 28, 2008 12:11AM | Copyright: www.bad-credit-advisor.com | More in Relieving Debt | Comments (0)
Recent Entries
- Capital One Secured Credit Card to Improve Credit Score - Review
- How to get approved for mortgage - loan approval help
- Spouse average FICO credit score is higher?
- Why average credit score?
- Getting mortgage after bankruptcy - go FHA
- Debt settlement and how it affects credit score
- Debt settlement with Citibank
- Can I settle with credit card company with no late payments?
- Credit card limit lowered, credit score goes down
- Gold price will rise in 2011