Staute of Limitations on Debt in Nevada

Nevada's statute of limitations on debt reduces the options that creditors and lenders have for collecting delinquent debts after a certain amount of time. Yet the statute doesn't relieve consumers of paying legitimate debts. Still, Nevadans need to know debt-collection restrictions to protect themselves from overzealous collectors who may violate laws to settle delinquent accounts.

Statute of Limitations

The statute of limitations on debt in Nevada varies based on the debt involved. The statute restricts the amount of time a creditor or lender has to sue a consumer to collect a delinquent debt. The statute of limitations on credit-card debt and debt linked to verbal agreements is four years. That increases to six years for debts cited in written contracts, but it drops to three years for debts outlined in promissory notes. A debt-collection company can't legally sue a consumer to recoup a debt if the statute of limitations has expired, but it can use other means to recover the money owed. Consumers aren't relieved of any debts they owe unless a debt has been forgiven by the lender or discharged in a bankruptcy.

Collection Practices

Collectors have the right to contact Nevada debtors to demand payment when accounts become delinquent. According to the Legal Aid Center of Southern Nevada, collection companies can accept partial payment from debtors, renegotiate payment terms or take legal action to recoup the money owed. However, it's a violation of the U.S. Fair Debt Collection Practices Act to sue or threaten to sue a consumer after the statute of limitations on a debt has expired.

Debt Verification

Nevadans have the right to request verification of a debt they don't believe they owe. Such requests should be made in writing and within 30 days of receiving the first collection notice. The collection agency must then send documentation that proves the debt in dispute is accurate. Collectors must stop contacting debtors if they lack the proof to verify a debt. However, Nevadans can require a collection company to stop contacting them under any circumstances, but the company may then pursue legal action to collect a verified debt if the statute of limitations hasn't expired.

Considerations

Creditors also can execute repossession rights in Nevada to settle delinquent debts. According to the Legal Aid Center, creditors don't need a court order to repossess vehicles, furniture or other items that customers are paying off in installments if their accounts are delinquent. Consumers who refuse to consent to a repossession essentially force their creditors to sue them. Nevadans who want to avoid a lawsuit may be able to negotiate a voluntary repossession in which creditors agree to forgo a financial settlement if their merchandise is returned.