Why SOL Matters
Debt buyers purchase old, charged-off debts. The statute of limitations may have expired. If so, the debt is time-barred and the buyer cannot successfully sue you.
Calculating the SOL
The clock starts on the date of last payment or default (varies by state). Written contracts: 3-10 years. Open-ended accounts: 3-6 years. Check your state.
Avoiding SOL Revival
Making any payment (even $1), signing an acknowledgment, or entering a payment agreement can restart the clock in many states. Never pay old debt without understanding consequences.
Frequently Asked Questions
Can they sue on time-barred debt?
They can file, but if you raise SOL in your answer, the case is dismissed. Always respond. Suing on time-barred debt may itself be an FDCPA violation.
Does selling the debt restart the SOL?
No. The clock runs from the original default or last payment, regardless of how many times the debt is sold.
What if they sue in a state with a longer SOL?
The FDCPA requires suing where you reside or where the contract was signed. Suing elsewhere for a longer SOL may be an FDCPA violation.
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