Statute of Limitations on your Credit Card Debt
What is the statute of limitations (SOL) on credit card debt?
Creditors and debt collectors have a limited time to you for nonpayment of credit card bills. That time limit is set by a state statute of limitations. Below is a list by-state of SOL’s.
That is NOT to say that the collection agencies do not have the right to continue to attempt to collect from you. They do. They just are barred from using the court system to do so. They cannot sue you after the statute of limitations has expired. Such suits are called “time-barred” and the judge will dismiss them.
Do not confuse the statute of limitations with the length of time that a debt may remain on your credit report. A bankruptcy, for instance, will remain on your report for 10 years regardless of the statute of limitations. And, if a creditor successfully wins a judgment for payment of a debt, that information will remain on the report for seven years.
When does the clock start to tick – when is the start time? It varies by state, but generally the statute of limitations begins when a credit card account becomes past due. However, in some states the clock begins to tick six months later. To determine when you are “free” of the threat to file suit, add the number of years of the SOL to the start time.
Members should be aware of a practice called re-aging of old credit card debts. The clock on the statute of limitations may start anew if you make a payment, even the smallest of payments, on a debt that has exceeded or is approaching the end of the SOL. Acknowledging an old debt may also extend the time limit on potential debt collection lawsuits. I advise that you not acknowledge old debts or debts you don’t recognize on you report to avoid inadvertently re-setting the clock on the statute of limitations.
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