Acknowledgment of debt

What does Acknowledgment of debt mean in American Law?

The definition of Acknowledgment of debt in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

A statement by a debtor communicated to his creditor which admits the existence of the debt. The statement may expressly state an intention to pay the debt, but will usually imply such an intention. Such acknowledgments are legally most important with respect to alleged debts barred by either the debtor’s discharge in bankruptcy or by the running of the applicable statute of limitations, for in some jurisdictions, under some circumstances, the “acknowledgment of debt” will revive the

obligation to pay the otherwise barred debt. But the question is very heavily regulated by statute, and the governing rules go every which way as to whether the acknowledgment must be in writing, whether it must contain a new explicit promise to pay, whether the acknowledgment revives the whole prior debt or is limited to the amount acknowledged, etc. Sometimes the “acknowledgment” is really just a proposal for an accord (see accord and satisfaction), inasmuch as the debtor acknowledges the debt but only if the creditor agrees to be bound by certain conditions imposed by the terms of the acknowledging document. This variety of acknowledgment of debt is often called a “conditional acknowledgment” [of debt].

Meaning of Acknowledgment of Debt

In this law dictionary, the legal term acknowledgment of debt is a kind of the Louisiana law class.

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