Statute of Limitations for Consumers in Mississippi

A consumer with delinquent debt payments is likely to be sued at some point by the creditor or a debt collector to enforce the debt. However, the time period to use the court system to collect consumer debts is limited. In Mississippi, as in all states, the statute of limitations requires the creditor to commence court action within a certain number of years or the creditor can be barred from enforcing the debt.

Written Contracts

Consumer debt is frequently incurred through a written agreement to pay for goods or services. Mississippi law specifies a general statute of limitations of three years where no other specific statute applies. Consumer debts based on written agreements fall under this statute. If the written agreement is for a loan, such as a promissory note, a specific statute of limitations applies, and that one is six years. In either of these cases, the period of limitation starts on the date a payment is due but was not paid.

Oral Contracts

If the consumer debt is not based on a written agreement, Mississippi law specifies a three year statute of limitations. Such debts are typically incurred by consumers using credit card or charge card accounts. The statute of limitations on these accounts begins on the date that a charge is incurred, but was not paid. An account with multiple unpaid items on different dates will have a different limitation end date for each item.

Deficiency Debts

The issue of deficiency debts applies to consumers who incurred the debt as a result of security against their real estate, such as a mortgage or deed of trust. In situations where the consumer's property was foreclosed, but the sale price was insufficient to pay the debt in full, the creditor may take action to collect the balance or deficiency. Mississippi specifies a one year statute of limitations on deficiency debts. The statute begins to run on the date of the foreclosure sale.

Enforcement of Judgments

A creditor who successfully sues a consumer will obtain a court judgment on the unpaid debt. At that point, a new limitation period applies. Mississippi law gives the creditor seven years from the date the judgment is made to enforce it using the court process, such as wage garnishment or bank levy. However, unlike the other limitations periods, the creditor can extend the seven year period by renewing the judgment with the court. Only after the judgment has been dormant for more than seven years will it become unenforceable.