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Maverick, Attorney
Category: Business Law
Satisfied Customers: 5749
Experience:  20 years of professional experience
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Please review the issues below (if you have access to them)

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Please review the issues below (if you have access to them) about an earlier issue. I may be getting sued for this debt; the attorney's representing their cleint tell me the statute of limitations is 7 years, not 3 years. Could you look into this for me please. You had told me the statute was just 3 years. I need what to do before I put my company in jeoprody - one way or the other.


Depending on the type of debt, the SOL appears to be 3, 4 or 6 years in Delaware. See the link above.



Customer: replied 6 years ago.

This is an insurance policy from 2005 ending spring of 2006; it was a business policy for automotive and liability insurance. I cannot tell by looking at the link you provided were this falls in the statute of limitations.

MOst likely this is a debt under a written contract so the SOL would be three years. However, I have a question, how do you owe money on an insurance policy? I thought you had to pre-pay for the insurance coverage for the next term or else the insurance policy gets cancelled for non -payment..; so how did you incur a debt in this case?

Customer: replied 6 years ago.
You are 100% correct! There must have been a major screw up in there office. My staff called the company (a broker whom we had worked with for ~ 20 yrs) at least 5 times through the course of that year requesting a bill - we knew we could not handle a huge bill (in this case $40k) at one time with a threat to cancel. We have no idea how this "slipped through the cracks" on their end. We stopped pursuing them for bills after a while (however, we even had 2 claims filled that year by the auto insurance) and a year later, left that broker altogether. The entire issue was forgotten and then out of the blue (~ 1 year ago) a huge packet of bills was sent to us with a rather nasty letter telling me I knew I owed this money. I have actually considered going to the Insurance Commissioner on this because of the way it has all been handled.

I would send them a certified letter stating that the statute of limitations has expired on the debt as per the link I gave you and that if for some reason they still believe that you owe they money they need to send you in writing legal authority supporting their position. Further that if you do not receive a written response from them in this regard with in 30 days, you will consider any further attempts to collect the debt to be harrassment and seek legal recourse under the Fair Debt Collections Practices Act and/or other legal remedies as may be provided for under law and equity.


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