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 by Tony | More in Debt Relief | Comments (0)
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