Missouri Statute of Limitations for Unsecured Debt

Unsecured debt typically arises from transactions involving credit cards, revolving credit accounts and installment agreements. If a debtor fails to pay an unsecured debt, the only legal action the creditor can take against the debtor is to file a lawsuit and obtain a civil judgment. In Missouri, as in all states, the law sets a time limit---called the statute of limitations---by which the creditor must file a lawsuit to collect an unsecured debt. If the creditor does not file a collection lawsuit before the statute expires, the debtor can defeat the lawsuit.

Missouri Law

The statute of limitations on unsecured debt in Missouri depends on how the debt was incurred. For example, if the debtor signed an installment agreement for a major appliance, the debt is based on a written agreement. Missouri law gives the creditor 10 years from the date the debtor defaulted in payments on a written agreement to file a lawsuit. For unsecured debts based on an oral agreement or an open-ended account, such as a credit card account, the law only gives the creditor five years to file.

Asserting the Statute

When the statute of limitations on an unsecured debt expires, the debtor has a valid legal defense against a lawsuit filed to collect the debt. However, this does not mean that the debt is automatically extinguished. The debtor must be vigilant in asserting his rights under the statute. For example, a creditor can file a lawsuit on an expired unsecured debt and serve the debtor with the lawsuit. If the debtor fails to respond to the lawsuit and raise the statute defense in court, the creditor can obtain a default judgment on the debt. In this situation, the debtor's inaction amounts to a waiver of the statute of limitations defense and effectively revives the debt as a court judgment.

Judgment

Civil judgments in Missouri are also subject to a statute of limitations, which is 10 years. As a practical matter, when a creditor obtains a judgment on an unsecured debt, this reset the limitation period to 10 years. However, unlike the statute of limitations on filing a lawsuit to collect the debt, the creditor with a judgment can extend the statute to collect the judgment. Missouri law permits a judgment creditor to file a motion with the court to revive the judgment before the 10-year period expires. If the court grants the motion, the judgment is collectible for another 10 years.

Debt Collection

A creditor or debt collector is not prohibited from engaging in collection activity on unsecured debt that is expired under the statute of limitations. So long as the creditor or debt collector acts reasonably in calling or writing to the debtor requesting payment, the fact that the statute has expired does not make such action impermissible. However, a debtor must be cautious when communicating with a creditor or debt collector about an expired debt. If the debtor acknowledges the validity of the debt, makes a promise of future payment or makes a partial payment---no matter how small---the statute of limitations on the debt may be revived.