Legal Question in Credit and Debt Law in Maine

Re: statue of limitation on credit card debts

On the current judgment, you face the process of �disclosure,� namely, disclosing your ability to pay in light of non-exempt assets and income versus living costs and other financial obligations. In the disclosure proceeding, your statute of limitations argument is irrelevant.

It was relevant in the underlying suit in 2007. But by not attending, you largely waived your right to raise that defense. There is a small chance that the court may entertain a motion to vacate the default judgment if you could show good cause why you defaulted together with a likelihood of success had you not defaulted.

The limitations period should be 6 years unless your debt is based on a contract under �seal,� a witnessed promissory note, or evidences of debt issued by a bank, in which case a 20-year limitations period exists. Either way, the limitations period runs from when the creditor�s action �accrued.� Generally, accrual for installment payments is separate for each installment, which suggests that all installments due since 2001 would be fair game. More specifically, your credit card likely qualifies as an open account under 14 M.R.S.A. 852, whereby accrual for limitations purposes is at the time of the last payment. If so, and if your last payment was in 2005 as you suggest, the entire debt should be fair game even under a 6-year limitations period.