The statutes of limitations is an important law for all to consider in every aspect of life. Many fail to realize that the statute of limitation has found its way into the world of credit cards.
It is important for all to understand all of the different laws that surround their credit card debt. While some will find that they need to get on credit card debt management because of their finances, others will realize that they are already debt free, or that they have leverage for a credit card debt settlement.
What is the Civil Statutes Of Limitations, Federal Statutes Of Limitations & State Statutes Of Limitations?
The statute of limitations simply states that those who are seeking outstanding debts must work to do so within a specific frame of time. Companies that fail to file lawsuits for the money that they are owed within a specific amount of time will no longer be able to work to collect those debts.
How Does Statutes Of Limitations Work?
State Statutes Of Limitations The statutes of limitations is different from one state to the next. The state simply sets a time limit on the debts that are outstanding. A company simply cannot work to collect a debt 30 years after the debt was listed as outstanding. The companies must handle the issue in a timely manner, and must file a lawsuit to be able to continue the collections process.The differences between the states come in the form of the amount of time that a company has to file a lawsuit for those debts. The amount of time will change from state to state; you should work to understand the exact statute of limitation in your own state, in regards to credit card debt.
What Does Statutes of Limitations Mean for Me and my Credit Card Debts?
Statutes Of Limitations On Debt Most credit card companies are going to work to get the debts that are owed to them. Few companies are actually going to let the statute of limitations go out on the debt before the file a lawsuit. There are some individuals who manage to make it through to the statute, however, meaning that they will not owe the debt.It is important to note that the issues that will arise through collection agencies and other reports will go through to your credit score, and will affect your credit rating and ability to get other credit cards.
Statutes Of Limitations On Invoices There are some people who are going to be protected by the specific SOL in their state, especially those with shorter statutes of limitations. There are others who try to rely on this, only to find that it does not help to make them debt free when the company picks up the lawsuit before the deadline.
You should work to understand the laws and talk with the appropriate credit card debt settlement companies attorney or lawyers to understand the best way to approach your credit card debts.