The creditor can file a lawsuit up until
the statute of limitations in your state — up to a decade depending upon the type of obligation.
Let's say you had a 5 - year old debt and
the statute of limitations in your state is six years.
Debt collection companies can continue to sell your debt over and over again until eventually, the debt expires through
the statute of limitations in your state.
The mistake occurs when the debt is old enough to meet the requirements of
the statute of limitations in their state — meaning the consumer was no longer legally obligated to make good on the debt.
Basically, if you went to a non-accredited school or your private student loans have been in default past
the statute of limitations in your state, those loans should be swiftly dealt with in bankruptcy.
And eventually,
the statute of limitations in your state will be reached on the debt, and now the debt goes away for good.
If a debtor makes a payment to the bank or the bank's collection agency toward the amount he owes,
the statute of limitations in some states can immediately reset.
And while these special rules apply to private student loans that meet some criteria, all private students loans are no longer legally collectible once they have expired under
the statute of limitations in your state.
If you make it past
the statute of limitations in your state you could be exempt from repaying the student loans through a suit.
You would be better off not paying it and just letting it ride out
the statute of limitations in your state so that it falls off your credit report.
Be very careful with old debt as an expired
statute of limitations in some states can be restarted by making any amount of payment on an old debt, entering into an agreement plan to repay the debt or even acknowledging you owe the debt.
You need to be aware of
the statute of limitations in your state.
Do you know
the statute of limitations in your state?
You can confirm
the statute of limitations in your state with an attorney or your Attorney General.
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The statute of limitations in your state and your card agreement are the starting points, but individual cases can be complex... (See Debt legally expires)
He or she is aware of
the statute of limitations in your state and may make sure you get your lawsuit filed in time.
Your medical malpractice attorney can tell
you the statute of limitations in your state.
The statute of limitations in some states limit the amount of time a burn injury victim has to file a claim, so contact us as soon as you can.
The statute of limitations in the state of Texas states that the time limit to file a claim is 2 years.
You can determine
the statute of limitations in your state by contacting your local child support office or local courthouse.