Don't Let Collectors Fool You A statute of limitation is the length of time that a debt can be collected through court action.
You need to understand how statutes of limitation can be used to repair and protect your credit.
The most important thing to know is that the clock on the statute of limitation begins when you first became overdue.
Don't be fooled.
Collectors will try to claim that the SOL restarted when the debt was sold to them or when it appears on your credit report.
If a collector calls you on a debt that is past the SOL, know your options.
The collector has no leverage.
They cannot take you to court because the case will be thrown out.
In this case, the collector may be willing to negotiate a lowered amount.
And, if you do not want to pay anything that is your option.
It will remain on your credit report, but will eventually fall off.
If you don't want to deal with collectors on these debts, you can write a letter to the collector to tell them to never contact you again.
That is the law.
And if they decide to try to sue you, when you respond to the complaint with proof that the statute of limitation is up, then the suit will be dismissed.
Educate yourself.
Statutes of limitation are different for each type of debt and in each state.
Take a look online and see what the guidelines are for your situation.