A statute of limitation is a state or federal statute that limits the maximum time allowed on certain situation.  There are several statutes of limitations.  Some may deal with mechanics liens, some deal with personal liability issues, criminal activity, etc.

It is felt that if too much time passes before action is taken then  facts maybe lost or events forgotten.

In the case of credit there are various statutes of limitations depending of the type of agreement. These statutes dictate the maximum time a creditor can wait before taking legal action. 

We have compiled a list of the states and their statutes of limitations on the most common forms of credit. Click here to review the list. 

Each statute also dictates when the statute time begins.  In the case of credit it maybe when you last paid, or when you last charged, or when you last verbally reaffirmed the debt.  Each state is different.