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If you’re having a hard time paying off your debts, such as a credit card, you’re probably doing your research on when your credit card debt technically “resets.”  What you’re going to find out is that every state is different, when it comes down to this law, so let’s take a look.

The process of debt collection

When you don’t pay off a company after a period of time, you will find that they will sell off your debts to another collection agency.  Generally, this collection agency is going to be able to get your debt for pennies on the dollar.  Now, this is when you’re going to find that the harassment is going to start, and it won’t start until you either tell them to stop, or you pay the bill.

The first thing that you’re going to want to do is check your state’s statue of limitations.   Let’s say that you live in Missouri.  They stay that you are going to be held responsible for 8 years.  Now, if this collector comes after you 9 years later, they legally can’t do this.  As long as you can prove it, they will have to wipe this debt clean and never contact you again.  If they are within the statue of limitations, you will have to either pay your bills, or continue to get harassed.

Looking at debt after 7 years

Now, let’s say that you either paid off debt, or you’re still ignoring it.  Technically, after 7 years, this is going to disappear off your credit report.  For example, let’s say you had a medical bill that was past due for $500.  You end up paying it down the line, but you waited a long time.  Even when you pay it in full, you’re going to find out that you will have to wait 7 years to get this removed most of the time.

What happens if it is still on my report?

If you’re finding that your credit report debt is still on your report after 7 years, you’re going to find out that you’re going to want to write them a dispute letter.  You’re going to want to make sure that you not only have evidence on the issue, you will want to make sure that you know where to send the letter.    Read this post on how to write a dispute letter for more information.

As every state is different with their laws, you will find with your credit report, that most of the time, your debts should be removed after 7 years.  While this isn’t always the case, be sure to consult with the credit report agencies if you have any questions in regards to your report.

I was doing some research on the Internet the other day, and I came up across a question that I find online all the time.  That question is listed below:

What happens to debt after a death?

While there are so many scenarios, let’s take a look at what’s going to more than likely happen, as well as what you can do, when you want to prevent bad things from happen when you’re no longer on this planet.

Who is generally responsible for the debt?

After a death, what will happen most of the time is that any debts owed will be taken out of the estate.  So, for example, if they owed $20,000 and they had $25,000 in assets, there would be around $5,000 left over after all is said and done.  These debts are going to have to be paid before you can go forward to claim anything such as property, and more.

Now, what you’re going to want to look into are the laws with your state.  What you’re going to find out is that each state is going to have it’s own laws, when it comes down to the statutory period in which they can claim debts against the estate.  While many creditors may come forward down the line, you will want to ensure they aren’t outside of the statutory period.

Looking at joint accounts

If you have a joint account with someone that has recent passed, you will find that you will be held responsible, as you are on the bill, claiming that you will be responsible, if the other account holder can’t pay.  This is why you will always want to do your due diligence when signing onto an account with anyone else.  Even if they are alive and kicking, you will find that you will still be held responsible as well.

What happens if there isn’t a lot of money?

Let’s say that the estate doesn’t have any money to cover anything, what will happen?  You will find that most of the time, the credit card company is going to lose out.  As long as you’re not on an account, under a holder, you won’t be held reliable.

As all laws vary on the state, you’re going to find that your best bet most of the time is to call up an attorney, as he/she will be able to walk you down the right path.  While it’s a tough time to lose somebody, you will find that as long as you’re not tied to an account, you should be okay 99% of the time.