Under Massachusetts law, a debt incurred is valid until repaid. However, a creditor that seeks to compel payment from the debtor through the legal process must take action in a timely manner or his right to sue "expires." The Massachusetts statute of limitations provides that a civil action to enforce payment of a debt owed must be filed in court within a specified period of time. Any action for repayment of delinquent debt that is filed beyond this designated period is considered time-barred and may be dismissed by the court.
Breach of Contract
Because a creditor/debtor relationship usually arises from the existence of a binding legal agreement, the applicable Massachusetts statute of limitations period is that established for breach-of-contract actions.
Six-Year Limitation Period
Massachusetts General Laws, Ch. 260, 2, provides a six-year limitations period for breach-of-contract actions. A creditor seeking to compel repayment of a delinquent balance owed must file his suit against a debtor within six years.
Computing the Limitations Period
For purposes of computing the limitations period for filing actions to recover debt owed, the legal cause of action accrues on the date the contract for repayment was breached. The six-year statute of limitations clock begins on this date and ends on the date a civil action is filed in the clerk's office in the appropriate district court.
Procedures
Pursuant to Rule 8(c) of the Massachusetts Rules of Civil Procedure, the statute of limitations is an affirmative defense and must be raised by the debtor/defendant in his answer to the creditor's complaint after it's filed in court. Once properly raised, the debtor/defendant can request that the court dismiss the action for the creditor's failure to comply with the statute of limitations timely filing requirements.
Considerations
The statute of limitations operates as an absolute bar to bringing a civil suit. Once it's determined that the civil action was filed in court beyond the designated six-year limitations period, the court must dismiss the action --- the creditor has no further legal recourse against the debtor. A civil action that's filed outside the relevant six-year limitations period doesn't extinguish the debt or render it invalid; it does, however, preclude the creditor from using the court system to compel repayment.
0 comments:
Post a Comment