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.
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.
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