The Debt Statute of Limitations (SOL) may be your way to debt relief. If you could read minds and read the minds of bill collectors, you'd quickly find out three things.
Number one, they are hoping and praying you don't know your legal rights granted to you by the Fair Debt Collection Practices Act.
Number two; they are hoping and praying you don't know the rights afforded to you by your local and state laws by way of the debt statute of limitations.
And finally, number three, in their eyes, ignorance is bliss and they are going to blitz you with every violation of the aforementioned laws until you cave in or have a nervous breakdown.
What is The Fair debt Collection Practices Act (FDCPA)? - It is a law that enacted by our legislators to protect citizens from the brazen harassment and haranguing of high-octane debt collection agencies. Prior to this act, debt collectors could harass debtors without impunity. They could call all hours of the day and night. Come by your house. Threaten you. Inform your employer, family and friends about your delinquent debts and otherwise make your life miserable.
Once the Fair debt Collection Practices Act was enacted and the word began to filter down, things slowly began to change. Consumers started suing overzealous debt collectors and winning. But even so, debt collection companies realized that the average citizen still isn't aware of their rights and so they continue violating provisions of the Fair debt Collection Practices Act.
If you are in debt and have been contacted by a debt collector, you need to put the brakes on and read the act and find out what your rights are.
After the FDCPA was enacted, individual states started crafting their own laws regarding debt. One of the provisions each state affords its citizens is a debt statute of limitations. In a nutshell this law means that virtually every debt has an expiration date. Meaning that once it reaches that date, it is NO LONGER enforceable. No matter what a debt collector tells you or threatens you with; that debt can't be enforced! They cannot sue you.
The exceptions are Federal Student Loans, certain back taxes and in some states delinquent child support may not have an expiration date. To be certain do your homework and research.
You need to get this fact drilled into your mine; just because a debtor has the Fair debt Collection Practices Act and a debt statue of limitations on their side, that doesn't mean debt collectors are going to automatically cease in their attempts to hound you and harass you. That's why it is critically important that you first learn your rights under the FDCPA.
Secondly, go find out your states debt statute of limitations. Some states such as Pennsylvania have a four-year statute, whereas New Hampshire has a three-year statute and Missouri has a ten-year statute.
It is crucially important that you do not pay toward a debt that is past the debt statute of limitations. The moment you do, you essentially reaffirm that debt and the clock restarts from that moment on. For example, lets say that you have a student loan debt that has reached the debt statute of limitations and there's nothing any debt collector can do about it. But you go and make a partial payment.
At that moment, its just like you signed for that delinquent loan all over again. If you want to pay such a loan, wait until you have all the monies in your hand and then negotiate a settlement and get in writing. Otherwise, don't do anything. If it's past the SOL, just let it roll off into the ocean of forgetfulness.
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