The statute of limitations does not erase the debt. The lender can still contact him, sell the debt to a collection agency, and report the delinquency. More critically, the moment he receives a $250,000 settlement, he becomes a highly collectible target. Creditors and collection agencies monitor public records. A large personal injury settlement is exactly the kind of event that prompts a creditor to pursue a judgment before the statute of limitations expires. Waiting is an active gamble with real legal exp ...