Debt Collection Guide

Debt Collection Statute Of Limitations Section


Debt Collection Statute Of Limitations Navigation

Main Home Page
Tell A Friend about us
Collection Debt |
Debt Collection Practices |
Bad Debt Collection |
Fair Debt Collection Act |
Debt Collection Letter |
Fair Debt Collection Practices Act |
Fair Debt Collection Practices |
Collection Debt |
Fair Debt Collection Act |
Debt Collection Law |

List of Debt-Collection Articles

Debt Collection Statute Of Limitations Best seller

Buy it Now!

Best Debt Collection Statute Of Limitations Products

"Legit Online Jobs" - Click Here To Start Earning Today!

Ovation Credit Services
Check out Ovation Credit Services ... Fix your credit profile today! Ovation specializes in credit report repair. This is an awesome program. They get fantastic results and you'll be amazed at the low monthly fee. Highly recommended!

"How To Get A Mortgage"
Terrific resource on obtaining a mortgage, even if you've been foreclosed or filed bankruptcy. On sale now for only $10.00!

Click Here!

Loan Officer 101 Loan Officer Training. Learn How To Make $100,000 Per Year As A Loan Officer With This 18-lesson Training Program, Complete With 28 Marketing Ideas - Now Is The Time To Prepare For The Next Wave Of Lending!

Click Here!

Personal Loans & Visa Approved At Abacus
Offering Personal Loans, Credit Cards For The Credit Impaired.

Click Here!

Mortgage Secrets For Investors
Mortgage Secrets For Real Estate Investors E-book. Stop Getting Bullied By The Banks And Start Closing Your Investor Loans!

Click Here!

Bad Credit Personal Loans Regardless Of Bad Credit - Up To $25,000
Click Here!


Social bookmarking
You like it? Share it!
socialize it


Subscribe to our newsletter AND receive our exclusive Special Report on Debt-Collection
First Name:

Main Debt Collection Statute Of Limitations sponsors


Newest Best Sellers


Welcome to Debt Collection Guide


Debt Collection Statute Of Limitations Article

Thumbnail example

The Importance of Understanding the Debt Collection Statute of Limitations

Debt collection is covered by the statute of limitations. The statute of limitations refers to the law that sets a deadline for law suits. For every type of case, the law sets a certain timeframe for people to sue. Normally, the debt collection statute of limitations set the timeframe according to the date of the event’s occurrence. In reference to debt collection, it means that after the designated statute of limitation expires, a collector can no longer sue you. So, if the collector wants to go with legal action, he should start the process before the debt collection statute of limitations expires.

The debt collection statute of limitations is computed according to the last time you made a payment to your debt. For example, you made a payment on May 15, 2008. Six months will be added to that date. It will now be November 15, 2008. Next, add the number of years of the statute of limitations. This will depend on two things – the state where you incurred the debt and the type of agreement you signed for the debt. For the purpose of this computation, let’s assume the debt was an open-ended account in New York. This means that six years will be added to November 15, 2008. This will make November 15, 2014 the date that the debt collection statute of limitations expires. All debt collection activities may stop now since the debt collector can no longer use legal action to force the debtor to pay.

Knowing the debt collection statute of limitations is important. With this information, you can know your account’s situation and how it affects the chances of you being sued. Remember that even if your account is only a month or a day from the expiration of the statute of limitations, you can reset the expiration date if you pay just a single dollar. You’ll be back to square one, and you’d have to wait six months and six years before you can be free from any possible law suits.

To determine the statute of limitations on your debt, it is important to know what kind of debt you have.

Open-Ended Accounts - According to the Truth in Lending Act, an open ended account is a type of credit plan that has repeated transactions and interests and balances that vary from time to time. Credit cards belong to this classification.

Oral Contract – This is a contract where you verbally guarantee someone that you will pay the debt you owe him.

Written Contract – A debt where the creditor and debtor sign an agreement that details the terms of payment as well as fines and penalties.

Promissory Note – This involves a written document where the debtor agrees to pay the debt according to a specific schedule of payments. The debtor also agrees on the applicable interest rates.