Unpaid debt has become a significant problem in Missouri and elsewhere in the U.S. When it comes to late payments, there was a 4.27 percent 60-day delinquency rate and a 13 percent default rate in the U.S. as of April 2010, according to CreditCards.com. This leaves a debtor open to many potential financial problems, including a lawsuit, judgment and wage garnishment.
Identification
Credit card debt is considered an open account in Missouri because it has no set time limit, and the money is available as long as the limit has not been reached. It is different from written and oral contracts and promissory notes, which are other types of time-barred debt.
Significance
The statute of limitations on Missouri credit card debt is important because a creditor can no longer obtain a judgment against you once this time has passed. If you want to settle a large debt for a lesser amount, you should do so after the statute of limitations is up to avoid triggering a lawsuit.
Time Frame
The statute of limitations on an open account in the state of Missouri is five years. The clock starts ticking from the date of first delinquencythe date on which you became 30 days late on your account.
Considerations
If you paid money or agreed to pay money on the account after your first 30-day late mark, then the statute of limitations clock will start over and not start again until you are again 30 days late on the account. Therefore, it is important not to set up payment arrangements, once this clock begins, if you do not intend to follow through and send payment.
Warning
Your credit card company can sue you for the unpaid balance owed on your cards if it does so before the statute of limitations has been reached. In Missouri, you can have up to 10 percent of your weekly wages garnished if you are head of household or up to 25 percent if you are single with no dependents, according to BCS Alliance.
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