Bill collectors hounding you? Considering repaying or negotiating an old debt? The statute of limitations on bills, often referred to as tolling of time is a powerful tool for consumers. The SOL can thwart off lawsuits and collectors when attempting to collect or sue on dusty old debts.
If a debt is legally expired, you can escape being sued or having to pay it back. Likewise, it can be detrimental because many debtors unwillingly renew the SOL by making a partial payment or a written promise to pay which extends the statute.
The statute of limitations is a civil code. Each state has its own statute, For instance, the code section in Cal. Code of Civil Procedure § 337.
The legal meaning for statute of limitations is: THE TIME OF COMMENCING ACTIONS -Time allowed that litigation - lawsuit can be brought. After that time, it has expired. Statute is a law. Passed by legislation and varies by state. The original statute of limitations begins at the onset of the contract signing (see more below for time barred debts).
Statute of limitations vary from state to state but it is usually 4-6 years depending on the state. The term statute of limitations means the time allotted to legally enforce the debt. If a statute expires and someone sues you, it is up to you to bring the expired SOL defense.
Don't assume an expired statute of limitations means the other party is barred from attempting to collect. It simply means that your defense is the expired SOL - not to enforce the lawsuit. The statute of limitations for your credit reports is separate. Items on your credit reports are seven years.
Best Texas Credit Pros
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