S L asked:
I remember hearing once that a debt after a certain amount of years, is moot. Does it depend on the state where the debt occurred or you current state of residence?
I heard that collection agencies that specialize in buying old debts, to try and collect on, **** for people to know about these laws. Where does one look up information about this? And what exactly does one do to bring it to the attention of the collection people, that you are no longer obligated by law to pay on such an old debt?
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11 users responded in this post
after 7 years it no longer affects your credit report
You are always repsonibile, there have even been cases where peoples social security checks were partially taken until their old student loans were repaid. of course this is extreme but possible.
Once a debt is older than the statute of limitations for debt in your state, a debt collector no longer has the right to sue you for payment. You may still have a moral obligation to pay back the debt, but you can’t be sued over it.
In some states, making a partial payment to a debt collector or even acknowledging that you owe the money is enough to make an old debt new again.
If this happens, the five-year statute of limitations on your debt starts all over again. A debt collector has five more years in which to sue you for payment. And a non-payment on your new-again debt could be reported on your credit report. Then the advantage transfers to debt collectors.
I will just tell you that i had a credit card company take me to court for an old credit card bill- from around 12 years ago- these companies buy the debt for pennies on the dollar- and if they collect the actual amount- it is theres to keep- I know this because this is what prompted me to file bankruptcy
It falls off of your credit reports after 7 years, but once you owe the debt the people you owe it to can continue to try to collect it as long as they want, or until it is paid.
Debt statute of limitations vary from state to state. It is usually 4 to 6 years. This just means that you cannot be sued for debt repayment after that time. The debt still exists and stays on you credit report for 7 years.
Be careful, if you send a partial payment during that time, the statute starts over again. Usually collectors look for a small payment, so the clocks starts for another 4 to 6 years
Legally it depends on your State. Go to NDRC.com and look up your State it will list the statute of limitations for debts.
After the S.O.L. expires you can not be taken to court for the debt. This doe’s not mean that collection companies will not try and get you to pay, they just cant sue you if you don’t.
There are two things to consider.
1. Even if you are not legally bound to pay it, collectors can still trash your credit as long as the debt is less than 7 years old.
2. Each state has a statute of limitations on how long a collector may take legal action (sue you) on a debt. There’s a chart on bankrate.com that I’ve linked to below that provides the time limit for each state.
in till u pay it off
It varies form state to state. check this site out-
Find you state and it will tell you how long you are legally required
You purchased something then you pay for it! It’s people like you that keeps interest rates high.
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