Did you know debts have expiration dates? It’s called Statute of limitations. ? Statute of limitations on debts varies from one state to another, which means the amount of time on debt collection and the type of debt you have that the court force you to pay is different in each state. Normally, it’s between 3 to 6 years; however, it can last as long as 10 or 15 years in some of the states. Use the Statute of Limitations to Your AdvantageThe statute of limitations (SOL) for your creditor or a debt collector to collect debts starts on your account’s last date of activity and again it can be varied by each state. Even if the SOL has expired, some debt collectors won’t give up on debt collection. The reason is they assume most people don’t know anything about the SOL and you’ll pay the debt, if they pressure you enough. However, if you are sure the SOL has expired, you can certainly use that fact and not have to pay the debt. Remember not to restart the SOL. Why? Every time you take an action on your default account, the SOL restarts. For example, the SOL can restart when you make a payment, enter a payment agreement or charge your credit card again. When the clock starts again, it starts from zero, no matter how much time had gone by before the new activity. So, What’s Your Statute Of Limitations? If you recently moved, some debt collectors might try to use your home state for the statute of limitations, especially if your home state’s SOL time limIt’s longer than of the state you currently live in. This would give them more time to collect the debt. Keep in mind that not all debts have the statute of limitations, such as federal student loans, child support and income taxes. What Are Not Included in Statute Of Limitations? Prevent a debt collector from filing a claim against you. Get rid of debt. If the debt is legitimately yours, you are still obligated to pay it off. Avoid the debt from being reported on your credit report. In fact, the debt can be reported as long as the credit reporting time limit permits. Statute of limitations on debts is something that most people are not aware of. ? It’s undoubtedly helpful when you know it and use it as your advantage.
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