Category: Regulations & Compliance

Statute of Limitations (SOL) is a time period allowed by the state for a creditor to assert their claim on a debt. The time period varies greatly depending on the type of contract (oral, written, promissory note or open-ended) and the state where the debtor resides. For example, the SOL can range from two years for an oral contract in California to 15 years for a written contract in Kentucky or West Virginia. If the debt is not paid within the time frame allowed, suit must be initiated.

What is a Proof of Claim?
A Proof of Claim is a written assertion to the bankruptcy court, trustee, debtor and other interested parties that you, the creditor, wish to assert your rights to a distribution in a bankruptcy case. Filing a Proof of Claim may be your only avenue of potentially being paid by a bankrupt debtor.

Entrepreneurs, specialists and CEOs who operate companies did not open their respective businesses to collect on past-due accounts. Each started their business to provide a good or service to fill a need. Often, there is not sufficient time, resources or understanding of the best way to collect on past-due payments.

Scenario: You have a customer who owes you money for a product provided months ago. They have ignored your letters and avoided your phone calls. Finally, you’re able to speak to your contact and she tells you, “Talk to my lawyer, Bill Jones at Jones & Associates!” This is followed by a prompt click and dial tone.