State laws known as ________ limit the time within which a party is allowed to bring suit to collect a debt.
A)promises not to sue
B)charitable pledges
C)option contracts
D)statutes of limitation

Question

Quizplus · Accepted Answer

Statutes of limitation are state laws that restrict the amount of time an individual has to file a lawsuit to recover a debt. These laws vary by state and by the type of debt, generally ranging from 2 to 10 years. Once the statute of limitations has expired, the creditor is no longer legally entitled to collect the debt through legal action.

State Laws Known as ________ Limit the Time Within Which