Statutes of Limitations
by Mr Credit CardI was introduced to a lawyer that specializes in helping people with debt. One of the topics that I asked about was about statute of limitations. I learnt a lot just from speaking to him, but I also did my own research on this matter. This is what I found out.
Statute of Limitations is different from the fact that negative items that are more than 7 to 10 years stops getting reported in your credit report. Statute of Limitation refers to the time frame from the date of delinquency which prevents creditors from suing you and taking you to court. (That may not necessarily stop them from harassing you and trying to collect any unpaid debts).
What is also important is that different states have different statute of limitations. For example, Alaska was cited as an example with a relatively short 3 year statute of limitations. Apparantly, different states also have different statutes for either written and oral contract. In some states, credit card debt can be considered either a written contract, an oral contract or even a seperate category.
In some states, you can even restart the statute of limitations if you either make a payment for an old debt or even acknowledge it. (That is why it is sometimes better just to ignore a negative item on your credit report – and let it just be removed after a number of years).
Another complication that can arise is the fact that some people move, but the debt is incurred in another state. I was told that in most cases, it is the state which you are currently living that matters. But that may not always be the case.
After my conversation with this lawyer, it appears you have to do a lot of research and work before you try to repair your credit or even think about negotiating old debts! It is probably prudent to find a good lawyer who is familiar with your state laws to give you the best advice.
April 2nd, 2007 at 11:24
[...] Credit Poorer Than You Endless Giberish We’re In Debt Credit Card Lowdown B.A. Student 1 Mans Money The Time and Money Group My Financial Awareness Ask Mr. Credit Card [...]
April 2nd, 2007 at 13:32
[...] Credit Poorer Than You Endless Giberish We’re In Debt Credit Card Lowdown B.A. Student 1 Mans Money The Time and Money Group My Financial Awareness Ask Mr. Credit Card [...]
April 2nd, 2007 at 22:06
[...] Ask Mr. Credit Card writes about the statute of limitations and debt. [Would I be Mr. Anti-Credit Card ?] Intoductory quote: I was introduced to a lawyer that specializes in helping people with debt. One of the topics that I asked about was about statute of limitations [...]
April 2nd, 2007 at 23:13
[...] Ask Mr. Credit Card writes about the statute of limitations and debt. [Would I be Mr. Anti-Credit Card?
] Intoductory quote: I was introduced to a lawyer that specializes in helping people with debt. One of the topics that I asked about was about statute of limitations [...]
June 7th, 2008 at 02:31
[...] Mr. Credit Card has an interesting blog post about the statute of limitations in dealing with debt. The statute of limitations, or time period after the date of delinquency during which the creditor could legally sue you, varies greatly from state to state. For instance, Alaska and North Carolina have three-year statutes of limitations, while Ohio’s and Kentucky’s run up to 15 years. [...]