What is Statute of Limitations on collection cases in Massachusetts

If you are trying to collect a debt, it is important to know certain information before you begin collections. One of the many questions we get from our clients is what is the Statute of Limitations on collection cases in Massachusetts? The statutes allow you to continue to bill a client for past-due bills but there are limits on when you can file a lawsuit to seek a judgment. In general, the law in the Commonwealth of Massachusetts allows creditors to sue a customer for up to six years to seek a judgment.

When does the six year period start?

The six year period starts beginning on the last day the customer has made a payment. Keep in mind, any payment the customer makes will restart the six year time period, regardless of how small the amount you collect. Any amount of money you can get a customer to pay will allow you an additional six year period.

What happens after six years?

Provided the customer has not filed for bankruptcy protection and had their debt discharged, you may continue to bill the customer. The primary difference is you can no longer go to court requesting a judgment for the debt.

It is also important to note that all rights granted to consumers regarding debt collection must be adhered to strictly, even when the consumer is a business. Keep in mind, the best thing you can do is to start the collections process early enough so that court action can be initiated if necessary. This will improve the chances of collecting the monies that are owed to you.

How soon should collection activities start?

In general, studies prove the sooner you start collection activities, the higher the chances of collecting on past due debt. The longer you wait, the harder it is going to be to collect the debt. If you have billed a customer for more than two months with no response, it is probably a good time to consider more aggressive collection activities.

Whenever you are in a position where a customer owes you money for past due invoices, you should contact us right away. It is never a good idea to allow debts to age while you try to decide how to begin collection proceedings. The longer you wait, the less the chance of recovery.We will work aggressively to ensure we get the money you are owed and if necessary, do everything possible to collect on a judgment issued by the court.

Contact us now, so that we can tell you how we can help you collect the money you are owed. There is no charge for us to review your claim.