How long you have to file a lawsuit depends on what is called the Statue of Limitation that is applicable to your fact. The Statute of limitation varies depending on the type of contract or claim at issue.
– Oral Contracts – you have two years.
– Written Contracts – you have four years.
– Common Count – The Statute of limitations for all common counts based on a writing is four years. Without a writing, the statute is two years.
So what does that all mean? It means that if you have a written contract with the debtor and they fail to pay then you have 4 years from the date they failed to pay to file your lawsuit. If its an oral contract like, I will sell you 4 dozen apples and you pay me $100 by January 15, 2008, then you have two years from January 15, 2008 to file your lawsuit.
Lastly, what is a Common Count? Well stay tune and we will address that question shortly.