State Statutes On Debt Collection
Sometimes it feels as though you have been in debt for years, if you actually have been in debt for more than a specified period then you could be clear of that debt. You may not realize it but there is actually a limit to the time a creditor can continue chasing you for a debt. Debt limitation statutes are laws that state the time limit under which a creditor can try to get money back from you. The Statute of Limitation is there to protect debtors who are chased through the courts by their creditors after a prescribed period of time.
In America the Statute of Limitations is not the same in every state so you need to check out the laws that pertain to the state in which you live. The statute is also different for kinds of debt such as mortgages and credit cards each will have its own specified time limitation. You can get the regulations that pertain in the area in which you live from the State Attorney’s office as well as over the telephone or via the internet. If you are in debt and are being chased by your creditors then it is in your own best interests to educate yourself on the regulations.
Whenever you take out a loan or other credit agreement that is the date that is used to calculate the limitations on that debt. This is especially relevant to unsecured debt such as payday loans and credit card debt. Your accountability is dated from the time you stopped paying or had trouble paying your debt. You would need to go to court and provide strong evidence regarding your debt, especially if you want the judge to dismiss it under the Statute of Limitations. You may need to provide your credit reports as these are enough to substantiate that you are outside the time period where the debt collector can continue chasing you for the debt.
It is useful for debtors to know about the law regarding limitation of debt liability although it doesn’t actually take the debt off you; it is something that you can appeal to if there is a lawsuit. If you can prove to a court that you are outside of the time for repaying the debt then you could be relieved of repaying the debt by the judge. Some debt collectors will still try to get you to settle the debt but if you don’t pay it then they cannot go beyond the reach of the Fair Debt Collection Practices in order to get you to pay the debt. If you think that you have a case under the Statute of limitations, and are being threatened with legal action then it is worth using it in court.
