STATUTE OF LIMITATIONS
The statute of limitation (SOL) is the time allowed, in this case, a creditor to sue you. Since we are dealing primarily with the Great State of California, the SOL in most instances is four (4) Years. Because many lenders have their corporate offices outside of California, it can become confusing as to what SOL applies-the state in which the corporation is in? or the state in which the borrower is in? So, which state law on SOL applies? Lawsuits are normally brought in the state where the delinquent consumer resides per FDCPA section 811.(B), In these instances the SOL is 4-years (CA). Once this time period has passed, the bill collector can no longer use, threaten or bring a lawsuit as means to collect a debt.
This is not always the case. Many lawsuits are filed despite the fact that a debt is time barred and debt collectors win when consumers fail to respond properly. Click Here - Get Started Now!
If you suspect that a debt is beyond the statute of limitations it would be wise to have an experienced negotiator in your corner. This will save you time, money and the potential hazard of reaffirmation without resolution.
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Statute of limitations and Credit reporting
Many consumers are confused by the meaning of "time barred debt" and the reporting period of a debt trade-lines on their credit reports. Simply put: A time barred debt is a debt that cannot be litigated upon (note the above warning). The time in which a debt can remain on your credit profile is seven (7) years from the date of first delinquency.
Settling a time barred debt
Settling a time barred debt may be advantages in some circumstances such as preparing to purchase a home or auto. There are many pit-falls to avoid in these instances. Having an experienced negotiator will save you time, money and potential hazard of reaffirmation without resolution.
