| Author |
Message |
|
Options 
Bookmark online
|
ChrisCredit
Joined: 30 Nov 2008
ChrisCredit's page
Posts: 1
101 Magic Points
|
|
Subject: Do you have to pay a creditor back after xx years?
|
|
|
Sun Nov 30, 2008 9:18 pm
|
|
|
| I read some where that if you do not pay a creditor back after a certain amount of years. You no longer are responsible for the debt that is do. IS this true? IF so how many years and what is the law? Were can I learn more? |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
|
|
|
|
|
Mon Dec 01, 2008 12:33 am
|
|
|
| Yes, this is true but it all depends on your state. For example in PA the SOL (statute of limitations) is 4 years from the date of your first missed payment. Say you made the last payment on a credit card debt in Jan. 2000 then they could no longer sue you for the debt after Jan. 2004. Some will still try to take you to court but can not win. What is your state and debt situation? If you at least let us know your state we can look up the SOL. |
|
|
goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3735
10 Magic Points
|
|
|
|
|
Mon Dec 01, 2008 2:20 am
|
|
|
That law is called the statute of limitations, some people would say that you that no matter what you still owe the debt afterall you did borrow the money, get the goods, etc, etc. Just thought I would through that in there because somebody is gonna come on here and say that, so why not me, lol.
Any way, it is the statute of limitations, if you let us know what state you are from we will be happy to look that up for you. and of course try to help you with anything else that you need to get this all taken care of.
_________________
Goodnatured,
http://cashinpocket.synthasite.com/
for all the ways I make $$ online |
|
|
carol
Joined: 27 Jun 2006
carol's page
Posts: 1308
28489 Magic Points
|
|
|
|
|
Mon Dec 01, 2008 3:43 am
|
|
|
Hi ChrisCredit
There is a period of time known as the Statute of Limitation period, till which you are fully responsible to pay off the debt. This statute of limitation starts from the date of your last payment towards the debt and continues from 3 to 10 years depending upon the state you have signed the loan agreement. So you first need to check the SOL period of your state. If the SOL has already expired then you are no longer required to pay off the debt else you should send a DV letter to the creditor whose name appears in your credit report and pay off the debt once they validate the debt.
_________________
Keep in touch
Carol |
|
|
Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1093
25288 Magic Points
|
|
|
|
|
Mon Dec 01, 2008 3:52 am
|
|
|
Yes, Carol is right. But once the SOL in your state has expired you should not pay off the debt, because if you make even a small payment towards the debt after the SOL expiry, the SOL rewinds and you become liable again for the debt and the creditor can sue you to the court to bring judgment against you to recover the debt. However, you should note that although you are no longer liable for the debt, the negative listing will stay in your report for seven years and six months from the date of your last missed payment.
_________________
All the Best 
Justin |
|
|
anthony
Joined: 31 Jul 2006
anthony's page
Posts: 550
13573 Magic Points
|
|
|
|
|
Tue Dec 02, 2008 9:43 am
|
|
|
Yes, Justin is right. You should not make any payment towards a debt once the SOL on the debt has expired, else SOL will start again. Now to be sure whether the SOL has expired or not, you need to pull out the credit report to check the name of the creditor whose name appears against the debt and send a DV letter. A proper validation will give you the detail of your last payment against the date from where you can find out the SOL expiry. If SOL has expired, you need not pay off the debt, else try to pay it off.
_________________
Anthony Marx
A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible. |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
|
|
|
|
|
Tue Dec 02, 2008 2:05 pm
|
|
|
| If the last payment was to the original creditor they actually will list the date you were late after all the other stuff like credit limit..amount owed..go and look at your credit report...after all the other mumbo jumbo you should see a list of dates that say..30 days as of..and so on. Now if you made a payment after the debt was sold to another collection agency then you will have to try and get proper validation so you can see when the last payment was made. |
|
|
mrscoolh2
Guest
|
|
|
|
|
Tue Dec 02, 2008 6:49 pm
|
|
|
| hi, i live in texas, do you know the statue of limitations here? i would be interested in know that. thanks |
|
|
Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
|
|
|
|
|
Wed Dec 03, 2008 11:23 am
|
|
|
In Texas, the Statute of limitation for all the four types of debts - written contracts, oral agreements, promissory notes and open-ended accounts is 4 years. This Statute of Limitation starts from the date of your last payment towards the debt. However, the negative listing on your credit report will stay in your report for 7 years.
_________________
Where there's a will, there's a way !! |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
|
|
|
|
|
Wed Dec 03, 2008 11:27 am
|
|
|
No matter what the states SOL is the date the debt will fall off a report is the same no matter what state. So even if one state has an SOL of 4 years and another has one for 2 years in both states the debt will still fall off 7 years after it is listed on a credit report.
Mrscool...is there any way we can help? If so just ask. A good way to find out your last payment made to the debt is by checking your credit report. |
|
|
sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
|
|
Subject: credit
|
|
|
Thu Dec 04, 2008 5:45 am
|
|
|
| Here's a crazy question. Why HAVE a SOL then, if the 'fall-off' date ( for every state) isn't until 7 years after the first payment missed? I think I make ALITTE sense, anyway. I'm from PA, too. Yep...SOL here is 4 years, but,...........debts stay on your CR's for 7 years. Doesn't that 'defeat the purpose' of an SOL? |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
|
|
|
|
|
Thu Dec 04, 2008 12:54 pm
|
|
|
I think that the debtor has better protection when it is done this way. At least for the states that have a SOL less than 7 years. There is a big difference between the SOL and the "fall off"date:
SOL...period of time which a collection agency or original lender has to sue you legally, after that expires they can no longer hold you legally responsible for the debt.
"Fall off" date...Is the time an item is reported to the three credit bureaus. After the first payment missed the clocks starts to run and then when it reaches 7 years the debt will no longer appear on your report. |
|
|
sdchargers_63
Joined: 13 Aug 2007
sdchargers_63's page
Posts: 1334
1 Magic Points
|
|
Subject: credit
|
|
|
Fri Dec 05, 2008 12:36 am
|
|
|
| Sometimes all of this can get confusing. That was a great explanation, FIREYONE. Thanks. Sounds pretty 'cut and dry'. |
|
|
fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4124
1011 Magic Points
|
|
|
|
|
Fri Dec 05, 2008 11:48 am
|
|
|
| I think that is why most of us end up here SD is because it is all too confusing. I never mind explaining anything because thats what people did to me when I came. If you need anything else about credit explained and I can help just ask. I will answer it as honestly as I can. |
|
|
Mary
Joined: 06 Jul 2006
Mary's page
Posts: 730
17413 Magic Points
|
|
|
|
|
Fri Dec 05, 2008 12:13 pm
|
|
|
| Yes, you are right Fireyone. SOL varies from 3 years to 10 years depending upon the state you have signed the loan agreement. Now if the SOL is more than 7 years then the negative listing will go out of your credit report after the seven year period but still the creditor can sue you to the court to recover the debt. However, if you find that the listing period in your credit report is over, and still the creditor asks you to recover the debt, you can send a debt validation letter to be sure whether or not you actually owe the debt to the creditor. |
|
|
