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- As mandated by the Uniform Commercial Code 2-725 and recognized by the state of Ohio, no business shall collect or attempt to collect upon an open account that was created prior to four years from the date of collection. The only exceptions to this rule is in the case of a written contract that exceeds a period of four years. In the case of written contracts, the collector must collect on payment in full within 15 years of the date in which the contract was executed.
- In instances where a business has won a judgment from an Ohio court of jurisdiction ordering that an individual or entity provide payment for services rendered, the winning party has 21 years to collect on the terms of the judgment, but may apply for an extension on the time in which it has to collect every five years if proof of reasonable attempt to collect upon the debt is shown. Businesses that are recipients of foreign judgments -- judgments awarded outside the state -- are subject to the same statue of limitations on collection of the debt in accordance with Ohio law.
- Ohio businesses attempting to collect on debts through wage garnishment must do so only through order of the court. Once an order for wage garnishment is issued, the garnisher must collect on the debt in accordance with rules set forth by Ohio Revised Code §2716.04. Under this rule, an order for garnishment is in place until the time in which the garnishee has paid the debt in full. However, no business shall be entitled to garnish a debtor's wages when a payment agreement has been reached between the debtor and the creditor through a licensed debt counseling service unless failure to pay the debt has occurred for a period of no less than 45 days.
- Under laws set forth by the Fair Debt Collections act of 1978 and laws mandated by State of Ohio, no business may attempt to collect upon a payment for service once it has been notified that the debtor has filed for bankruptcy protection through the United States Bankruptcy Court. Under this rule, a business or designated collection agency must stop all collection efforts immediately upon being notified of the debtor's petition for Chapter 7 bankruptcy protection. In instances where the debtor files for Chapter 13 bankruptcy protection, the business must collect on the debt owed within 180 days of the date in which the petition was filed.
Open Accounts
Receipt of Judgments
Wage Garnishment
Statutes on the Effects of Bankruptcy
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