Statue Of Limitation On Debts
Learn About Time Barred Debts And Your Rights!
Statue of limitation on debts, your guide to stopping collectors cold. Debt collectors can't legally sue to collect time barred debt well past the credit card debt statue of limitations.
Many people get themselves into debt without doing their homework on what acquiring credit really involves. This often leads to confusion and frustration when the debt collectors come knocking on your door after you have defaulted on your payments.
It is very important to be clued up on the credit card laws pertaining to you before you even take that card from the issuer. So, here are a few things that you need to know about the statue of limitation so that you are aware of your rights and obligations.
The statue of limitations on debts states that debt collectors can contact you about debts that you owe, literally, forever. However, it does place a limit on the amount of time that they can sue you for that same debts. But, what happens to debts that you owe even after the credit card statue of limitations has expired?
Statue Of Limitation On Debts
Know the law
There are only a few things that can cancel out your obligation to pay off your debts. Those three things are if you pay your debts off completely, if the creditor cancels your debts and if it is discharged in bankruptcy.
If none of these have taken place, you are still obligated to pay your debt. However, once the statue of limitations has expired, those you owe money to can no longer use the judicial system and the courts to force you to pay your debt.
Can you still be sued after the statute has passed?
Yes, you can. The expiry of the statute does not remove your obligation to pay, nor does it state that debt collectors cannot continue to try to recoup the money you owe them.
However, what counts in your favor is that the statute has passed. Prove this and you cannot be forced to pay thus the applicable term of time barred debt.
So, when does the statue of limitations on debts start?
No matter what you or the debt collector claims, the statute starts on the last date of activity on your account. What this means is that it starts on the date you last made payment or, alternatively, the date on which you last promised to make payment. The statute can also start on the day that you acknowledged liability for your debt. This is very important to keep in mind.
Please take note: the clock on the statute of limitations can be restarted if you are not careful and make a mistake. After the statute of limitations covers your debt, you must be aware of every move you make and ensure that you never do any of the following.
Never acknowledge that you owe the debt.
Don't enter into any sort of payment plans, agree to make payment or make further payments, and do not make further charges on your account.
Anyone that is in danger of defaulting on debt should educate themselves. Find out the exact credit card debt laws pertaining to the UK, take note of all the factors of credit card debt statute of limitations and what it means to sign a validation of debt letter.
Many collection agencies may continue to attempt to collect the debts, but this action will not hold up in court and it will be thrown out. Before you make payments on old time barred-debt, you should review the statute of limitations for your state Click Here to see if the debt is even still valid.
Having an understanding of credit card debt law and the statue of limitation on debts can save you a lot of money and a lot of stress.
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