Learn How Long The Debt Statute Of Limitation On Collecting Old Debts From You Really Is!

Review of debt statute of limitation and debt collection statute of limitations. Before paying old debts, check here to see if the statute of limitations has expired on your debts.

The debt collection statute of limitations is, according to Cornell University legal information institute, a statute applying to both civil and criminal cases which requires suit or prosecution within a prescribed period of time following the civil injury or the date of the crime.

The debt statute of limitation varies state by state and getting dragged into court and having a judgment entered against you could further hurt your credit score and your efforts to rehabilitate your credit.

But before you contact your creditors, you should know the details of the statute of limitation in your home state. (If you've moved, it may be the state you live in now whose law will apply, even if you entered into the credit agreement in another state.

Your debt collection statute of limitations, depends on your state of residence. The Federal Trade Commission (FTC) refers to old debts that are beyond the point at which a creditor or debt collector can sue you to collect as Time-barred debts.

The window during which a collector cannot sue you is also referred to as the statute of limitation period and is usually between 3 to 10 years after the day of the debt or the last activity date on the account. To determine the last activity date look at your credit report.

Debt Statute of Limitation, Check Your Debt Collection Statute Of Limitations

The statute of limitation for written contracts, for example, range from three years in Delaware to 15 years in Ohio, although the typical limit in most states is five or six years.

The rules vary widely, but, in some states you can inadvertently extend the statute of limitations by entering into a repayment plan with a creditor or even by acknowledging that a debt is yours.

There are several types of agreements that are covered by a debt statute of limitation.

Oral Contract - Someone lends you cash but nothing is put on paper. You shake hands and you give your word to repay in whatever terms. Even if this can be difficult to prove, it is still a legally binding agreement.

Written Contract - You borrow money from a bank and it is all nicely documented and signed by you and a bank representative. Car loan is a written contract.

Promissory Note - It is a written contract with obligation to repay loan but promissory note also details terms of this repayment, i.e. number of years you have to repay, interest rate, late payment penalty, etc. Mortgage is likely the most common promissory note.

Open-ended Account - It is a revolving line of credit with varying balances and credit limits. Credit card and home equity lines of credit belong to this type.

The Debt Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. OUT OF STATUTE debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act.

If there has already been a lawsuit resulting in a judgment, that judgment has a separate Debt Statute Of Limitations.

Basically, the debt statute of limitation or DSOL is a time limit for creditors to file a lawsuit to recover delinquent debts from you. This period starts when a debtor becomes delinquent. Even if the statute of limitation on a particular debt has expired, a creditor still can file a lawsuit thru a Summons And Complaint, but the debtor can dismiss such a lawsuit on the technicality of expiration.

Know your state's debt statute of limitation!

All numbers are years:

State Oral Agreements Written Contracts Promissory Notes Open Accounts
Alabama 6 6 6 3
Alaska 6 6 6 6
Arizona 3 6 5 3
Arkansas 3 5 6 3
California 2 4 4 4
Colorado 6 6 6 6
Connecticut 3 6 6 6
Delaware 3 3 6 3
D.C. 3 3 3 3
Florida 4 5 5 4
Georgia 4 6 6 4
Hawaii 6 6 6 6
Idaho 4 5 10 4
Illinois 5 10 6 5
Indiana 6 10 10 6
Iowa 5 10 5 5
Kansas 3 5 5 3
Kentucky 5 15 15 5
Louisiana 10 10 10 3
Maine 6 6 6 6
Maryland 3 3 6 3
Massachusetts 6 6 6 6
Michigan 6 6 6 6
Minnesota 6 6 6 6
Mississippi 3 3 3 3
Missouri 5 10 10 5
Montana 5 8 8 5
Nebraska 4 5 6 4
Nevada 4 6 3 4
New Hampshire 3 3 6 3
New Jersey 6 6 6 6
New Mexico 4 6 6 4
New York 6 6 6 6
North Carolina 3 3 5 3
North Dakota 6 6 6 6
Ohio 6 15 15 -
Oklahoma 3 5 5 3
Oregon 6 6 6 6
Pennsylvania 4 6 4 6
Rhode Island 15 15 10 10
South Carolina 10 10 3 3
South Dakota 6 6 6 6
Tennessee 6 6 6 6
Texas 4 4 4 4
Utah 4 6 6 4
Vermont 6 6 5 6
Virginia 3 5 6 3
Washington 3 6 6 3
West Virginia 5 10 6 5
Wisconsin 6 6 10 6
Wyoming 8 10 10 8

Each state limits the amount of time in which a creditor can sue you after an account becomes delinquent. Sometimes the debt statute of limitation is longer than the credit reporting limits, sometimes shorter.

How long credit bureaus can report your accounts, is based on information in your credit report, and there are limits on how long your bad marks can be used against you. Once a negative item is on your file, it generally can be reported for 7┬Ż years from the time you stopped paying on the account and Bankruptcies can be reported for up to 10 years.

Your best bet may be contacting a consumer law attorney for help; you can get referrals from the National Association of Consumer Advocates.

Starting Today you will have the knowledge and power in your hands to change your life financially!

NOW! Just imagine what you will feel like, when you wake up one morning and absolutely know that all of your debts have been eliminated.

The debt statute of limitation information listed above is believed to be accurate at the time of the creation of this page, and is for reference only.

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