Legal Definitions - acknowledgment of debt

An acknowledgment of debt is when a debtor admits that they owe money to someone else. This is important in Louisiana law because it stops the time limit for collecting the debt from running out.

For example, if someone borrowed money from a friend and later sends a message saying "I know I still owe you that money," that would be an acknowledgment of debt. Even if the friend had only a short time left to collect the debt, the acknowledgment would reset the clock and give them more time to collect.

Another example could be a written agreement between a debtor and creditor that states the amount owed and the terms of repayment. This would also be considered an acknowledgment of debt.

Overall, an acknowledgment of debt is a way for debtors to recognize that they owe money and for creditors to have a legal way to collect what they are owed.