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Answer: First, a little background: A statute of limitations is a law that limits the amount of time you have to file a lawsuit after you have suffered some type of loss or injury.
What is Statute of Limitations? The Statute of Limitations is the maximum time limit for a creditor to file a lawsuit in federal courts to claim the outstanding amount against a fraudulent debtor. If the lawsuit is not filed within the stated time limit, the creditor will loose the right to claim or sue for it forever.