How The Debt Collection Statute of Limitations
Can Help You (Part 1)

The Debt Collection Statute of Limitations May Set You Free!
There was a time in this country when debt collectors had free reign in abusing, harassing and tormenting debt laden consumers. They literally got away with any and everything and laughed all the way to the bank while, while frightened, intimidated and fearful debtors were left lying in an emotional haze. They broke more laws and violated more rights than the Mafia. That was until consumers started fighting back and laws were enacted to bring the debt collection abuses to a halt. One of those laws is the Debt Collection Statute of Limitations. Learn about it and how it may be able to help you.

What is the Debt Collection Statute Of Limitations?
Have you ever gone shopping for milk or medicine, looked at the package and saw that the expiration date had expired? When that happens that store has broken a host of federal, state and local laws. In the summer of 2008, New York Attorney General Andrew Cuomo announced that he was taking legal action against the CVS and Rite Aid drug store chains for selling expired over-the-counter medicines and food products.

Unbeknownst to most consumers; debts also have sort of an expiration date known as the debt collection (SOL) statute of limitations. The debt collection statute of limitations is the period of time that a creditor or debt collector can no longer legally use a court to force you to pay a debt. Generally speaking, the time period starts on the account’s last date of activity (that’s the date that you last made a payment) and varies by state.

This SOL halts original creditors, debt collection companies and debt collectors from pursuing debts beyond that point. Once they cross that line, (and many debt collectors do so everyday) they have violated the law. That’s why it’s so important; prior to agreeing to pay an old debt, first make sure that the statute of limitations hasn’t expired. If it has, put the debt collector on notice.

What the Debt Collection Statute Of Limitations Does Not Do
Before I get into the nuts and bolts of the debt collection statute of limitations and what it entails. I’m going to first share with you what it does not do once the debt expires in the eyes of the state you live in.

It Does Not Erase The Debt
If the debt is legitimately yours, you will still owe it. However, at that point no one can legally pursue you for the purposes of collecting that debt.

It Does Not Prevent The Debt From Being Reported on Your Credit Report
The debt can be reported as long as the credit reporting time limit allows. Remember, there is also a statute of limitations on how long a debt can be reported to the credit bureaus. Once that date is reached, the debt, by law must be removed.

It Does Not Prevent a Debt Collection Company From Suing You
Even though the debt collection statute of limitations has expired. Some debt collectors believe consumers will never know about this type of law and they will sue anyway, banking on the debtor’s lack of knowledge. Although the SOL does not prevent a debt collector from suing, it does prevent them from winning a judgment against you as long as you can prove the statute of limitations has indeed expired. At that point you should sue them for filing a frivolous debt collection lawsuit.
 

People who read this article, also read:

• How The Debt Collection Statute of Limitations Can Help You (Part 2)
  
  When it comes to dealing with debt collectors and debt collections companies, the Debt Collection Statute of Limitations can help you. Find out how...
• Debt Collection Statute of Limitations Halts Debt Collectors In Their Tracks
  
  Little known Debt Collection Statute of Limitations Halts Debt Collectors In Their Tracks. Check out your states debt collection laws to determine if a debt you have comes under this law.
• Debt Statute of Limitations - What You Should Know About Debt Statute of Limitations and Back Taxes
  
  Debt Statute of Limitations - What You Should Know About Debt Statute of Limitations and Back Taxes. If you don;t these facts, you may be headed into trouble.
• Debt Statute of Limitations - What You Should Know About Debt Statute of Limitations on Student Loans
  
  Debt Statute of Limitations - What You Should Know About Debt Statute of Limitations on Student Loans. You may qualify for this form of debt relief
• Debt Statute of Limitations – What Bill Collectors Don’t Want You To Know About DSOL
  
  Debt Statute of Limitations – What Bill Collectors Don’t Want You To Know About DSOL. If debt collections companies could keep this information from you, they would in a heartbeat!

Joel Marks has been helping people get out of debt and avoid both bankruptcy and foreclosure for over fifteen years. Utilizing savvy debt counseling, debt management programs, Federal laws and a team of attorneys, debt counselors and advisors, he has quietly assisted thousands come from under the heavy burden debt.

 Source: http://debterasure.com/