Consumer Education:

Here are the seven most common question we've received from readers about the statutes of limitation for debt.

1. How Long is the Statute of Limitation for my Debt?

Time period typically either starts when you fall behind on a debt, or from the date of your last payment, and the length of time depend on state law for that type of debt. Unfortunately, it is not always clear-cut. So it's a good idea to check with your state attorney general's office, a consumer law attorney or legal aid, especially if you are being threatened with legal action.

2. Can a Debt Collector Try to Collect After the Sol has expired?

In many case, yes. However if you tell the debt collector not to contact you again, they must stop. It's good idea to put your request in writing. Once they've received it, they can contact you only to confirm that they have received your request or to notify you of legal action they are taking to collect. In some states, however, trying to collect a time-barred debt is illegal and a creditor who attempts to do so is breaking the law.

3. If she Sol has Expired Can I still B e sued?

It is not uncommon at all for consumers to be sued for time-barred debts. If you are sued for an old debt and the statute of limitation has expired, you can raise the expired statute of limitation as a defense against the lawsuit (here are some other debt you should not ignore a legal notice about a debt, even if you think the debt is too old. A consumer law attorney or bankruptcy attorney can help you figure out how to respond.

4. Should I pay an Old Debt?

That's something only you can decide. However, keep in mind that if you pay anything even a small amount- on an old debt, you may restart the statute of limitation. That's why i can be risky to pay an old debt if you can't afford to pay it in full. You could open yourself up to collection efforts, or even a lawsuit, for the entire amount the collector say you owe.

5. Can a Debt still Appear on my Credit Reports After the SOL Has Expired?

In many cases, the answer is yes. The length of time that negative information may be reported is governed by the Federal Far Credit Reporting Act. Most negative information can be reported for seven years. The statutes of limitation for most consumer debts, on the other hands, is for to six years. So you could have a situation, for example, where the statute of limitation expired on a debt in four years but the related collection account still appears on your credit reports for another three years after that. And, yes collection accounts can do serious damage to your credit scores.

6. I Took out a Debt in one State but moved. Which State's Sol applies?

That can b e difficult question to answer. Consumer can generally be sue in the state where they took out the loan or the state where they currently live. Sometimes the statue of limitation will be based on the laws of the state described in the contract in the case of credit cards, that will be spelled out in the credit card agreement. When it's not clear which state's SOL applies, it is often up to the court to decide . In a number of court cases, the statute of limitation that was shortest was applied. But that's not true in all cases. That's why it is helpful, if you are being sued for a debt, to consult with a consumer law attorney who can help you understand whether the statue of limitation has likely expired.

7. What is the SOL for Court Judgments?

If a creditor or collector has obtained a court judgment there is often a separate statute of limitation that applies to judgments (Tips: if you have unresolved debts, be sure to at least get your free annual credit reports, as we mentioned, to see if any judgments are listed. In many states, that time period is 10 years or longer, and judgments may be renewed.

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