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What Exactly Are the Debt Statute of Limitations and Why Are They Necessary?

The statue of limitations can make a huge difference when it comes to how to handle outstanding debt. †Just because an account is still being listed on your credit reports doesn't necessarily mean that you legally owe that company money.†

The statute of limitations (SOL), as it correlates to credit card debt, is a governed amount of time that creditors and collection agencies have to take legal measures towards you with the aim of collecting an unpaid debt. The SOL is different from state-by-state, and can range from 3 to 15 years.†

Thereís a federal statute of limitations that is a span of seven years, and thatís the period your creditors or collectors are permitted to list your defaulted account history on your credit report.†

To put it differently, if you owe a creditor, he has the specified period of time (as allowed by state law) to collect from you by any legitimate means needed, like taking you to court. When the state statute ends, he may no longer take on any type of actions against you. He can, nonetheless, go on to report your debt to the credit reporting companies until eventually the 7-year period finishes.

How can remembering the SOL help me repair my credit?

Learning the SOL is important if youíre repairing your credit considering it could easily identify the best possible approach to a given state of affairs. To illustrate, if perhaps youíre planning on challenging an inaccurate item on your credit report, you may likely wish to wait if itís still within the SOL. If you decide to challenge it, the creditor or collection agency can easily still make matters worse by taking you to court. If you were to wait until after the SOL expired, you can keep away from dealing with any type of litigation.

Knowing the statute of limitations could certainly also make it easier for you to wipe out outdated credit report information.

So when exactly does the Statute of Limitations begin?

The SOL starts on the date your last payment was scheduled but not received. In some cases, your creditor may try to get a hold of you in respect to the debt. If you really don't respond, the SOL may be changed to the date of their very last attempt to get in touch with you.† Thatís why you need to stay on top of these things.

What if the SOL is listed as the wrong time?

Anytime you think thereís a problem on your credit profileósuch as an inaccurate SOL starting dateóyou have the authority to question the specifics and have it removed or updated. You can do this by writing a dispute letter to the reporting agency or to the original creditor/collection agency.

If you think you want to learn more about credit repair or the statute of limitations and credit card debtScience Articles, get a hold of a certified expert to walk you through the process.

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


MyCreditGroup.com is an industry leader with experience in Credit Repair Services and Debt Settlement Solutions.† A nationally recognized authority on† helping people improve credit scores legally and effectively for over a decade.† Consultations are free and credit repair is backed with a no-risk guarantee.† Check out Credit Repair Rreviews to see what others have to say.



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