The statute of limitations for unsecured debt in Nebraska varies by the debt's specific classification. An unsecured debt may fall into almost any debt category depending on how the loan or other extension of credit was created. Each type of debt has a corresponding statute of limitations that serves as a creditor's timeline for debt collection should the debtor default on the loan or line of credit.
Credit Card Debt
Credit card debt is usually considered unsecured because the creditor has no collateral to seize in the event of account delinquency and default. Credit card debt is commonly considered an open account in Idaho and other states. An open account has an open-ended term of repayment, and the debtor may continue to use the credit available in the account as long as he makes timely payments on his account balance. The statute of limitations on an open account for debt collection purposes in Nebraska is four years.
Written Contracts
A written agreement is considered unsecured when no collateral, including a home or automobile, is available for the creditor to seize and liquidate. The creditor has little choice but to pursue the debtor directly to recoup some of the extended credit or payment for services rendered under contract. The statute of limitations for debt collection for a written contract in Nebraska is five years. A creditor may sue a debtor in civil court to obtain a judgment to garnishee up to 25 percent of the debtor's weekly disposable income or up to 30 times the minimum wage in the debtor's weekly earnings, whichever is the lowest amount. Only 15 percent of disposable income for a debtor who files his taxes as head of household is subject to wage garnishment in Nebraska.
Court Judgments
A court judgment is a ruling by a court requiring a debtor to repay a debt. A creditor obtaining a judgment from an Idaho court has five years to collect the debt. A creditor with a foreign court judgment also has five years. The statute of limitations for a domestic court judgment is renewable upon appeal to the court. This allows the creditor more time to recoup the debt owed. The statute of limitations for a foreign court judgment is non-renewable in Nebraska.
Statute Expiration
A creditor can no longer successfully sue a debtor in civil court once the applicable statute of limitations on the debt expires. A debtor may point out the time-barred status of the debt to the court if a creditor sues after this expiration date to have the lawsuit dismissed. The statute of limitations only applies to a creditor's right to obtain a court judgment. A corresponding negative notation on the debtor's credit report may remain for up to seven years.
0 comments:
Post a Comment