Multiple choice

If a creditor does not file a suit against the buyer for the recovery of price within three years, then the debt becomes

  1. time-barred and hence, irrecoverable

  2. time barred, but recoverable

  3. not time-barred

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Option (1) is correct: Debt collectors have a limited number of years to collect their debts. They can sue for the debt in that particular time, which is 3 years. After that, debts become time-barred debts and they are irrecoverable.