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Information on expiration of statute of limitations - The Bills.com Blog
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Information on expiration of statute of limitations
Tuesday, Nov 27, 2007
Question: I had listen to a section on KWCH which is our main Kansas TV channels and they had said something about in Kansas if a bill is over 5 years (I think) and you have not made any payments or have made any arrangements on it then it is no longer any good. Is this true?
Answer: If you have defaulted on the repayment of a debt, and the creditor wishes to take legal action against your to attempt to collect the debt, the creditor is required to file suit within a certain time period, referred to as the Statute of Limitations. Basically, a statute of limitations (SOL) is the time period during which a creditor can take legal action (i.e. sue you) to enforce a debt. Each state has defined its own statutes of limitations, and they vary significantly from state to state. For example, in California, creditors have four years to sue you to enforce a debt, while in Rhode Island they have 10 years. To learn more about statutes of limitations for the collection of debts, I encourage you to visit the BCS Alliance web site. From the information available on several web sites, it appears that the SOL in Kansas for the collection of many debts, such as personal loans, is five years, while the SOL for the collection of credit card debts is three years. While it is likely that this information is accurate, I encourage you to consult with an attorney licensed to practice in Kansas to discuss the specifics of your situation to help you determine if the SOL for your creditor to sue you has expired.If you determine that your state's SOL for the collection of debts has expired, it is relatively unlikely that the creditor will attempt to sue you to enforce the debt. While the passing of the SOL does not mean
that a creditor cannot sue you, if a lawsuit is filed you should have an absolute defense against the lawsuit. If you respond to the suit stating that the SOL has passed, the judge should dismiss the case. In addition, if the court believes that the creditor filed suit despite knowing that the SOL had expired, the court may sanction the creditor for its actions. Keep in mind that in most states, the SOL begins running from the date you last made a payment on the account. This means that if you paid just a few dollars to a collector a couple of years ago, the running SOL for that debt could have been reset. Also, keep in mind that the passage of the SOL does not prevent a creditor from calling you to collect on the debt; it simply provides you an absolute defense in court if the creditor files suit. You can generally stop collection calls by sending a cease and desist letter to the creditor. For more information about sending cease and desist letters, you can visit the I Hate Debt web site.
Your state's SOL has little to do with how long accounts can appear on your credit report. The length of time credit accounts can appear on your credit report is governed by federal law, specifically the Fair Credit Reporting Act. Generally speaking, negative listings will appear your credit report for seven years, while bankruptcies will appear for ten. So if
Your state's SOL has little to do with how long accounts can appear on your credit report. The length of time credit accounts can appear on your credit report is governed by federal law, specifically the Fair Credit Reporting Act. Generally speaking, negative listings will appear your credit report for seven years, while bankruptcies will appear for ten. So if
your state's SOL is five years, an account can appear on your credit report for two years after your state's SOL has passed. A new company purchasing your account cannot lengthen the time that the account can appear on your credit report. Be careful, though, because many debt purchasers try to change the date of last activity on old accounts so they appear on your credit report for a longer time. You need to pull your credit report and carefully review the accounts in question to make sure that no unauthorized changes have been made. If you find any suspicious information on your credit report, you should dispute the listings with the credit bureaus. The Federal Trade Commission offers a helpful guide to disputing credit listings, available at ftc.gov . To find out more about credit, credit scoring, and credit reports, I encourage you to visit the Bills.com Credit Resources page.
For further information regarding options available to consumers struggling with debt, I invite you to visit the Bills.com . You may not need assistance with your debt if the statute of limitations has expired, though it is helpful to know what options are available to you.
I wish you the best of luck in resolving your debts, and hope the information I have provided will help you Find. Learn. Save.
Best,
Bill
www.bills.com
For further information regarding options available to consumers struggling with debt, I invite you to visit the Bills.com . You may not need assistance with your debt if the statute of limitations has expired, though it is helpful to know what options are available to you.
I wish you the best of luck in resolving your debts, and hope the information I have provided will help you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by Clint Miller on Wednesday 20th February 2008 15:51
What is the statute of limitations for construction defects in Kansas. Does Kansas have a right to cure law?
2. Posted by Craig Putnal on Tuesday 27th October 2009 16:12
I have a previous CC account that the SOL has expired. The credit report from earlier this year noted the date of last activity was in 2002 and the date of original charge off (May 2003). Now a firm (Bronson & Migliaccio) has sent me papers indicating that they are seeking a judgment against me for the account, even though the 6 year window in NJ has passed. When you read through my credit inquiries, you can see that they pulled my credit report in February of this year. So they knew that the date of SOL expiration was May of this year. Yet they have continued to pursue the debt. My question: What do I send to the court & judge to show these things, and to stop them from getting a judgement? And should the judge fine or sanction them because they know they are filing outside the SOL? Your assistance is greatly appreciated, and I would be happy to positively acknowledge it on the site. Thanks! Craig
3. Posted by Bill on Wednesday 28th October 2009 10:41
In general, a creditor has the right to try to receive a judgment despite tolling (expiration) of the SOL. The burden is on the defendant to show the court that the SOL has tolled. This defense must be raised in a timely manner. If the amount in controversy is large, I urge you to consult with a New Jersey attorney who can review all of the facts in your case and provide you accurate advice. Whether you have a cause of action for malicious prosecution or whatever New Jersey calls filing frivolous or false cases is a question for a New Jersey attorney.