Statutes of limitations are laws that govern the deadline or maximum period of time in which a claim or lawsuit may be filed. The deadline for cases will vary depending on the circumstances of the case and the type of case or claim. The period of time may also vary from state to state and depending on whether a suit is filed in federal or state courts. If a lawsuit or claim is not filed before the statutory deadline, the right to sue or file a lawsuit or claim is barred. It is possible that under certain circumstances that the statute of limitation will be extended.
There are several reasons for having statutes of limitations. For example, fairness. The diminishing value of evidence; after an event takes place, over time, memories fade and important evidence may be lost or misplaced. The best time to bring a lawsuit is as close to the event as possible so as to have the best evidence available to prove a lawsuit or claim (or, to defend a lawsuit or claim). Furthermore, people want to get on with their lives without legal interference from the past. It is only fair that suits and claims be filed in a timely manner.
The injured party should be required to pursue an action diligently with speed and efficiency, both because of the diminishing value of evidence and because of the importance of closure for all parties.
Categories of Statutes of Limitations are typically divided into civil and criminal claims and depend on state or federal law.
For specific questions regarding the statute of limitations in your business, we suggest that you contact a competent legal professional. Remember that since the statutes vary by state, you may be required to abide by the laws governing the state in which the debtor is domiciled.