You’re going to find that each and every state in the United States is going to have it’s own statute of limitation on debts.

What is Statute of Limitations?

This is the amount of time that you’re going to be force to pay a debt.  Let’s say that we’re in the year 2010 right now.  If your state gives your 5 years for a state of limitations, you wouldn’t have to pay for anything before 2005.

So, if a debt collection company came after you for a 2004 debt, you legally don’t have to pay for it.  This is why it’s important that you look into your state’s statute of limitations.  You’re going to find that by knowing this, it can save you a few thousand dollars and your time as well!

Will I still owe once the time has passed?

If the debt collection company has contacted you after the time period, you will not have to pay.  If you have set something up beforehand, you’re going to have to pay those bills back legally.

Can I be sued for old debt?

If they come after your time period, you’re going to be free and clear.  Again, if you had set something up before the limitations have expired, you’re going to obligated to pay it.

How do I know how old it is?

You’re going to more than likely have to look at how old the bill is and when it went to collections.  You’re going to get stories from both sides.  Obviously, the collector wants their money, while you want to bail out on it.  Generally, when you made your last payment, this is when it’s going to start.

Can the debt statute of limitation reset?

It can!  If you make a payment, or you sign a contract to agree to pay it off, you’re going to be legally tied to it now.  This is why you will want to do your research before you even start something.

Can I remove old debts from my credit report?

Yes, you can.  You’re going to want to refer to the Fair Credit Reporting ACT for more information regarding your debts.

If a  lot of this sounds confusing to you, you’re going to want to meet with an attorney that’s going to be able to help you out.  To know your state’s statute of limitations, be sure to refer to our Statute of Limitations page.