Out of the several statutes that exist in the society, one such statute is the Statute of Limitations on Collections. It is one of those statutes about which people are quite ignorant and most of the people do not know that there exists something as the Statute of Limitations. 

It is a common case to be seen everywhere today that there is a defaulter debtor. It means that one person has taken loan or borrowed money from another person and has not paid it back to the person. The creditor can be an individual person or a company, etc. Whoever the creditor may be, the benefit of the Statute of Limitations on Collections goes to the debtor. According to the Statute of Limitations on Collections, one cannot be compelled via a court case to pay the unpaid debts after the expiry of certain period of time. The option of filing a suit before any court is barred after the expiry of the statutory term of limitation according to the Statute of Limitations. This however is not known by maximum debtors and most of the creditors. Because of the lack of knowledge about the statute of limitation, many debtors pay their unpaid debts under the fear of being dragged to the court in a civil suit and thus getting trapped in an endless and lengthy procedure that the court follows. Creditors who do not have knowledge about the Statute of Collections, at times do not pay too much heed to the early collection of their credits. This causes the time period of limitation to elapse and once the period elapses, the creditor cannot drag the debtor to the court. It is therefore always recommended that the credits given be recovered at the earliest. The period of limitation starts when the debtor gets at default i.e. when the debtor stops clearing his debts. 

Although the Statute of Limitations gives all the benefits to the debtor alone, the lack of knowledge of the statute by the debtor becomes the reason that he is unable to take the benefits of the Statute of Limitations on Collections. One thing has to be kept in mind by the debtor, that there should not be any transactions done through the concerned bank account even if they are not related to the clearing of debts otherwise the time period of limitation starts anew.