The Statute of limitations is the law setting out the maximum period of time that a debt can legally be pursued for payment. Once this period expires the debt becomes “Statute Barred” and it is impossible to take legal action to recover it. These time periods vary between Australian states and territories so understanding the jurisdiction a debt was incurred in is very important.
For simple contracts in Tasmania a debt may be pursued within a period of 6 years and the time frame for when the limitation period commences is generally from the date:
- a debt becomes overdue
- of the last payment
- the customer or their representative acknowledged the debt in writing
Where a default Judgment has been obtained the limitation period can be extended to a maximum of 12 years in Tasmania.
When a debt is referred to Tasmanian Collection Service for recovery action, we check the information provided to ensure that it is lawful for us to proceed.
If your debt is older and you are not sure if you should refer it to us please contact us at [email protected] or call your account manager on 6213 5599 and we will be happy to discuss this with you further.