Do you have debts that might be past the statute of limitations? 

Are you unsure whether it's too late to file a collections lawsuit?

Here's what you need to know about how the statute of limitations works, and what can happen if you pursue a claim that's already expired.

The Basics: Affirmative Defense

The statute of limitations is what's called an affirmative defense. That means the defendant has to raise it on their own, and they carry the burden of proving the claim has run out of time. If they don't bring it up, and the court doesn't notice on its own, it's technically possible to get a judgment on an expired claim.

But in practice, debtors usually know about the statute of limitations, and it's an easy defense to raise. Filing a lawsuit on an expired debt can come with real consequences:

Dismissal and sanctions. If a judge realizes a claim is past the statute of limitations, they may dismiss it on their own initiative or on the defendant's motion. In some cases, they may even assess a fine or penalty for filing a suit with no legal merit. The defendant might also be awarded attorney fees.

Counterclaims. Filing litigation beyond the statute of limitations can open the door for the defendant to file a counterclaim for violations of the Fair Debt Collection Practices Act or similar state or local consumer protection laws.

A few states go even further and forbid collections lawsuits entirely after the limitations period has run — so ignoring the deadline can put you in front of a judge who isn't happy about it. It's worth understanding the consequences before you act, and consulting a debt collection attorney about your rights before taking the next step.

Can I Renew an Expired Debt?

The easiest way to renew a debt is to get a partial payment on the account before the statute of limitations runs out. Collection agencies often try to get a debtor to make a payment — no matter how small — because it helps keep the statute of limitations from expiring on a debt that's still owed.

We Specialize in Michigan Debt Collection

Our Michigan debt collection experts can help you build a strategy tailored to your business's needs. Our goal is to help you get the best possible outcome in pursuing your case.

Since 1961, our top-rated lawyers have been dedicated to pursuing the money you're owed professionally, aggressively but ethically. With offices in Birmingham and Grand Rapids, we handle claims against debtors located in Michigan, even if you're located out of state or even out of the country.

Ready to collect what you’re owed? Call 248-645-2440 or click here to submit a contact form.