Time Barred Debts

Debt is not one of the most enjoyable things to have on your plate. However, many of us do find ourselves in the situation of owing money, which results in obtaining more and more debt. One of the most inopportune results of having debt is dealing with debt collectors hassling you for money that you either know you don't have or you are in the works of getting them their money. On the other hand however, there are those that simply choose to ignore the threatening calls and letters.

Like many legal issues debt also has a statute of limitations. A time barred debt is debt that is so old creditors no longer are able to hold you responsible, and they can take no legal action against you. The law varies from state to state so you will need to thoroughly investigate the laws in the state you reside in. The statute of limitations on debt is usually anywhere from three to ten years, in some states however it is longer.

The reason that they have this law is to discourage abusive collection practice. The creditors may not send your case to an outside collections agency after this time, and they have no way of suing you, and they cannot threaten to sue you. If they do, you can have the cased dismissed as long as you inform the judge that your debts are time barred. Usually debts are removed from your credit report after about seven years anyway, so the negative mark will not be there for long. Just because there is this statute on debts, you should not solely rely on the fact that your debt will eventually disappear.

It is definitely important to maintain your credit, during the duration of the debt you do have, it will make it extremely difficult for you to obtain credit elsewhere.

Contributing National Payday Staff Writer

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