How does the statute of limitation on a debt affect credit repair?

Be Careful

Credit repair should always be approached in the most careful manner possible. A little caution can save you money, trouble, and frustration.

New Credit Repair Options

The statute of limitation is the length of time a collector can sue you to collect a debt. Once the statute of limitation has expired the collector has no legal leverage; they can ask for the money, but nothing more. This gives you several extra options. In dealing with a collection that is past the statute of limitation you can comfortably contact the collector to negotiate a payoff. If the collector is not willing to settle you might opt to send them a cease communication letter and wait until the reporting period expires.

Check Your Time Limits

Statutes of limitation, by the way, have no bearing on reporting period limits, and are often considerable shorter. Statutes of limitation are debt type and state specific so each instance must be examined individually. Worth noting, the statute of limitation clock starts with the date of your original default which is the first time you missed a scheduled payment in the sequence that led to the collection status. The sale of a collection to another collector does not reset the statute of limitation clock.

Or Leave the Work to Us

If you are in our credit repair program we will automatically research the statutes of limitation on your collections and advise you accordingly.