California Statute of Limitations

California has a relatively short statute of limitations, at 4 years for most contracts and bills. Since you have financial hardship, you may want to look into debt relief alternatives too.

I want to make sure that you are aware of specifics around statute of limitations, so beyond your quick answer I will go into some details below:

The Statute of Limitations gives a defendant an affirmative defense in the event of a lawsuit. It is based on a running clock from the date of your last payment. The statute of limitations, and collection laws, vary by state. I recommend reviewing this page and looking for your state: State Statute of Limitations and Collection Laws.

Unrelated to statute of limitations, the date from which an account 'drops off of your credit report' is a credit reporting issue. Under FCRA §605 (a) and (b), an account in collection will appear on a consumer's credit report for 7.5 years. The clock starts approximately 180 days after the date of first delinquency on the account. To learn when an account will be removed by the credit reporting agencies (TransUnion, Equifax, and Experian and others), add 7.5 years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the seven-year rule. Review your credit report carefully to make sure that the dates of last payment being reported on these accounts are correct.

Some creditors, especially debt purchasing firms, will report inaccurate charge-off dates to extend the amount of time an old account appears on your credit report. If you find any inaccurate information, you should dispute the credit report listing with the bureau in question.

If you are in financial hardship and are struggling to pay your debts, you may want to consult with a professional debt resolution firm to discuss the options available to you. Very quickly, if you want a free debt consultation with one of Bill's approved debt help partners, visit the Bills.com debt help savings center.

Visit the Bills.com Credit Solutions and Resources page to learn more about credit, credit scores, and credit reporting.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com