Learn the ways statutes of limitations can be restarted, and how to avoid triggering these situations.
How Long Is the Statute of Limitations?
The specific statute of limitations will depend on the state in which you live, as well as the state in which you incurred the debt. It’s best to consult an attorney who specializes in debt law in your area, but most states impose a statute of limitations of between three and six years. The clock on the statute of limitations period usually starts ticking on the date of the last activity on the account. It could be later than that, depending on the type of activity you’ve done most recently. The statute of limitations will continue to run as long as you don’t take any action on your account.
What Can Restart the Statute of Limitations?
Certain actions can restart the debt statute of limitations on a dormant account, even if it’s done by accident. If you’re hoping to reach the statute of limitations, it’s important to know exactly what actions can give new life to old debt. In general, you revive the debt anytime you pay, agree to pay, or even acknowledge the debt account. Examples include:
Making a payment for any amountEntering a payment planAccepting a settlement offerAgreeing to pay off some of the debtAcknowledging that you owe a debtMaking a new charge on the same account
If the clock on the statute of limitations restarts, it starts back at zero, and it applies to the whole debt balance. This time reset gives the creditor or collector more time to use the court to force you to pay the debt.
Statute of Limitations and Credit Reporting
The credit reporting time limit is generally independent of the statute of limitations. You can’t rely on your credit report to keep up with the statute of limitations on your debt. Negative information can only remain on your credit report for seven years, and nothing can restart this period, not even a payment on the account. Credit reports also won’t track any communication or verbal agreements you made with a creditor or debt collector. While the average statute of limitations is about six years or less, some states have much longer statutes of limitations. Depending on your state, some debts may fall off your credit report before the statute of limitations has expired. In other cases, debts may still be on your credit report after the statute of limitations has expired. Some debt collectors may let you know that debt is beyond the statute of limitations and no longer legally enforceable. If they don’t give you this information, you can ask. The debt collector isn’t required to answer, but if they choose to answer, they’re required to answer truthfully. This is a precarious conversation to have though—you must walk a fine line between asking about the debt and admitting you owe it.
