Statute of Limitations, Three Words Creditors Don’t Want You to Know

Quick Post:  info you need to know now

I have gotten quite a few questions regarding the statute of limitations, so I have decided to start Quick Post;  A short post for hot topics or time sensitive material.

What is the statute of limitations?

The statute of limitations for a debt is the amount of time creditors can file a lawsuit on an unpaid debt.  However, creditors and collectors can still try to collect the debt.  The SoL (statute of limitations) varies from State to State.

A SoL on a debt can become void if you admit to the debt being yours.  In other words, if the creditor is asking you if this is your debt or if you made certain charges, and you respond yes, the debt is reactivated.  The SoL will no longer apply.

Zombie debt is a debt past the statute of limitations.  This debt is uncollectible, meaning you no longer can be sued by collectors for the debt.  However, that does not stop collection agencies from coming after these old debts.  They count on the fact that the average individual does not know about the SoL or they hope to void the SoL by getting you to admit to the debt.

Bottom line- You can pay the debt if you choose, but you can’t be sued if you don’t.   Also, that negative report will remain on your credit report for seven years from the date of the charge off.

Check what the SoL is in your  State.

Tags: collection agency, Credit Score, debt reduction, debt scams, how to deal with debt collectors, law, lawsuit, legal rights, rights against collectors, self help, SoL, statute of limitations, what collectors don't want you to know, zombie debt