When an individual incurs a debt to a creditor, the creditor has the right to seek repayment of this debt through various means. However, according to U.S. law, the creditor can only legally seek repayment of this debt for a certain period of time. This statute of limitations on debt collection is set at the state level. In Oregon, most consumer debts can only be pursued by creditors for up to six years.
Statute of Limitations
In Oregon, the time period marked by the statute of limitations begins when a debt first goes delinquent. After the debt has become delinquent, a creditor in Oregon will have six years to collect it. After this time has elapsed, the debtor no longer has any legal obligation to pay the debt and the creditor is no longer allowed to take collection actions. However, if additional payments are made on the debt after the debt has been declared delinquent, the statute of limitations will reset.
Contract and Liabilities
Many states have different statutes of limitations for different types of consumer debt. However, in Oregon, all consumer debt accrued through a contract, either written or verbal, has a statute of limitations of six years. In addition, debts accrued through other means, such as unpaid bills, can also only be collected for six years. However, counterclaims made by buyers against sellers do not have a statute of limitation in Oregon.
Legal Judgments
A creditor owed money by a debtor has the right to sue the debtor in court. If the creditor does so, a judge will award him a legal judgment if he finds the case to have merit. Once a debtor receives a legal judgment ordering him to repay the money he owes, then a new statute of limitations goes into effect. The statute of limitations on legal judgments in Oregon is not six, but 10 years.
Federal Debt
Theoretically, the personal debt accrued in Oregon may be owed to the federal government. For example, a debtor may have failed to pay his taxes in full, defaulted on student loan payments or neglected to pay child support. In the case of debts owed to the federal government, there is no statute of limitations. A debtor will owe this money until he dies -- and sometimes even longer. In some cases, the government will attempt to take this money out of his estate.
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