What,Exactly,Are,the,Debt,Stat finance, share, loan What Exactly Are the Debt Statute of Limitations and Why Are
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The statute of limitations (SOL), as it correlates to credit card debt, is a governed amount of time that creditors and collection agencies have to take legal measures towards you with the aim of collecting an unpaid debt. The SOL is different from state-by-state, and can range from 3 to 15 years. Theres a federal statute of limitations that is a span of seven years, and thats the period your creditors or collectors are permitted to list your defaulted account history on your credit report. To put it differently, if you owe a creditor, he has the specified period of time (as allowed by state law) to collect from you by any legitimate means needed, like taking you to court. When the state statute ends, he may no longer take on any type of actions against you. He can, nonetheless, go on to report your debt to the credit reporting companies until eventually the 7-year period finishes. How can remembering the SOL help me repair my credit? Learning the SOL is important if youre repairing your credit considering it could easily identify the best possible approach to a given state of affairs. To illustrate, if perhaps youre planning on challenging an inaccurate item on your credit report, you may likely wish to wait if its still within the SOL. If you decide to challenge it, the creditor or collection agency can easily still make matters worse by taking you to court. If you were to wait until after the SOL expired, you can keep away from dealing with any type of litigation.Knowing the statute of limitations could certainly also make it easier for you to wipe out outdated credit report information.So when exactly does the Statute of Limitations begin?The SOL starts on the date your last payment was scheduled but not received. In some cases, your creditor may try to get a hold of you in respect to the debt. If you really don't respond, the SOL may be changed to the date of their very last attempt to get in touch with you. Thats why you need to stay on top of these things.What if the SOL is listed as the wrong time?Anytime you think theres a problem on your credit profilesuch as an inaccurate SOL starting dateyou have the authority to question the specifics and have it removed or updated. You can do this by writing a dispute letter to the reporting agency or to the original creditor/collection agency.If you think you want to learn more about credit repair or the statute of limitations and credit card debt, get a hold of a certified expert to walk you through the process.