Debt Consolidation

Tips To Determine Statute Of Limitations For Debt Collection

There are several ways to determine statute of limitations for debt collection. As per the laws regarding statute of limitations, if a particular outstanding debt account is older than a certain period of time as specified under the state laws, the lenders and debt collectors lose their right to collect those debts. For example, in the state of Texas, if a debt account is older than four years, the debtor can no more be held liable to make the repayment. Legally, those debts they do not owe anymore. If your creditors or collection agencies are harassing you for debt payments where the statute of limitations has already expired, it is considered as a criminal offence and you have the legal right to file a criminal lawsuit against them. It is very important for you to keep in mind that the laws regarding statute of limitation for debts vary significantly depending upon the type of the debt and the state you are living in. Following are some of the tips and suggestions that you will find very useful while you are trying to determine the age of a particular debt account and whether you still legally owe them or not.

Find Out The Date When The Last Payment Was Made

In order to determine statute of limitations for debt collection, the first thing you have to do is to find out how much time has already passed since the date when the loan or account was active. An easy way to do this is to find out the date when you made the last payment. Alternatively, you can review your credit report and find out the date when an entry related to those accounts was reported out there. You can use this as a legal evidence to prove that the statute of limitations has already passed.

Debts Where Statute Of Limitations Does Not Apply

It is also very important for you to keep in mind that there are certain types of debts, where the statute of limitations for debt collection does not apply. Such debts may include federal student loans, child support payments, legal fines (like traffic tickets), income taxes, and other such things. No matter how old these debts are due in your name, you have the legal obligation to pay off the same. These debts are also the ones that do not get discharged when you file for bankruptcy.

If you are considering disputing the debt in court against a collection agency, you must first contact your state Attorney General to confirm the statute of limitations for debt collection on the accounts in question.


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