A statute of limitations for civil court is the legal time period in which a collector has a right to sue. The reason for a statute of limitations is that, after a certain amount of time, evidence begins to become misplaced or disappear, witnesses are lost and files are misplaced or destroyed. Every state has laws that govern statutes of limitations, and Michigan is no different.
Bills of Debt
The Michigan statute of limitations for bills of debt, such as loans or credit cards, is six years. Although negative credit can stay on your credit report for seven years, credit reports are not legal documents that say you owe money. Therefore, even if a creditor is asking for money more than six years and less than seven years after your account closed, any civil suit that they could bring against you would be dismissed by the court for surpassing a statute of limitations.
Breach of Contract
In Michigan, bills that arise from a breach of contract have a six-year statute of limitations. Examples of bills that arise from breach of contract are bills from a landscaper or contractor. A breach of contract includes payment schedule, but can include a great deal more. If you are a contractor and you receive notice from a collector that a customer is seeking restitution, that bill would fall into this category.
Breach of Sale
The statute of limitations for bills arising from a breach of contract for the sale of goods under the UCC is four years. This would include any bills whereby someone sold you something directly and you failed to pay.
Civil Judgments
The statute of limitations for civil court judgments is 10 years.
Real Estate
Any real estate mortgage or loan bill has a statute of limitations of 10 years. This is different from the statute of limitations for rent money due, which is six years.
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