January 14,2007

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  Statute of Limitations on Debt?

  It may seem unlikely, but there is a statute of limitations on debt, at least in the United States. The conditions vary from state to state, but the general premise is that, barring certain conditions, a debt collector no longer has the right to sue you for payment beyond the time allotted. This is not he by any means a "get out of jail free" card. You need to figure that, if you have spent enough time evading debt collectors for the statute of limitations to have passed, your credit score will be shot.
  
  What the statute of limitations does do, however, is protect you against creditors pursuing hopeless debts indefinitely. A collector who pursues you beyond that time is violating the Fair Debt Collection Practices Act. Keep in mind that, if you pay even a small amount on the debt beyond that time, the time to collect will renew itself. It may be in your best interest to contact an attorney if you have questions about how to best protect yourself against unfair debt collection practices.
  
  
  
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