statute of limitations for debt by state
Whether you carry a large amount of debt on your credit cards or pay them off each month, it may surprise you to find out that there is a statute of limitations on paying back that debt.
Usually when statute of limitations is spoken about, it’s being referred to in criminal terms. State governments have a certain amount of time to bring charges against a person for a criminal act.
Hector Milla Editor of the “Credit Card Debt Counseling” website — http://www.CreditCardDebtCounseling.biz – pointed out;
“…The statute of limitations on credit card debt is very similar. Credit companies have a certain amount of time to successfully obtain a judgement against you. If they don’t get the judgement, you no longer legally owe the money. The Federal Trade Commission refers to credit card debt as Time-barred Debts…”
The amount of time that the credit companies have to obtain a judgement depends entirely on what state you live in. The time varies from three years to over ten years. Once that time is up, the credit company cannot even legally threaten to sue you. Just because they can’t take you to court doesn’t mean they have to stop trying to collect, they may still call or send bills in the mail. Many times when the statute of limitations is nearly up, the financial company will make a last push to collect the monies owed. Any acknowledgment of the debt, like a small payment, can reset the time limit to collect in court back to the beginning.
“…Just because there is a limited time that companies have to collect from you, doesn’t mean a failure to pay won’t adversely affect your credit rating. Every month your financial obligation is reported to the credit reporting agencies as unpaid, your credit rating takes a hit. In fact, even after the time to collect in court is expired, those reported non-payments can stay on your credit report for seven years…” added H. Milla.
To find out how long the statute of limitations is where you live, contact your State Attorney General’s Office.
Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.CreditCardDebtCounseling.biz
About the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
Article Source: ArticlesBase.com – Credit Card Debt Statute of Limitation – What is it?
