there is a legal time limit a debt collector can sue you to collect on a debt
there are four types of debt covered under the statute of limitations
They record the details of lending agreements. A written contract will state how much was borrowed, the date it was borrowed, the reason for the loan, the interest that will be charged, when the payments are due, and how much the payments will be, and other terms of the loan. Both the borrower and the lender have to sign the contract for it to be binding.
Unlike oral agreements, written contracts are easier to prove. Auto loans are written contracts. Services that you agree to in writing and medical debts are also examples of written contracts.
Listed below is the Statues of Limitations by State
This list is for informational purposes only. Contact your state Attorney General’s office or a legal professional for current information.
when does the statute of limitations start on an account?
credit reporting on delinquent accounts
Most of your negative accounts will be removed from your credit report after 7 years. The date of removal is the date of first delinquency on the account. In many of the states listed above, the debt will be past the statute of limitations and will no longer be collectible, but the negative account will still be reporting on your credit report.
what are your options with delinquent account with an outstanding balance?
- Contact the creditor and negotiate the payment. They may accept less than the balance due. The item will be marked that the account was settled for less than the balance. This option does not look that good to potential lenders.
- Contact the creditor to pay the debt in full. This method looks better to lenders.
- Wait for 7 years for most items to come off your credit report.
contact whatcom credit restoration
If you have questions about collection accounts reporting on your credit file, give us a call at 360-312-7164. We offer a complimentary credit consultation.