There is a statue of limitations on credit card debt. Each state has its own set of rules and regulations regarding this. The statue of limitations means that after a certain amount of time has passed, a creditor cannot bring legal action against for a credit card debt. If a creditor starts litigation after the date has passed, you can let it know that the statue of limitations has passed.
Time Frame
The length for the statue of limitation will be three, four, five, six or eight years. You need to check with the regulations set forth in your state to determine the time frame for the statue of limitations.
Significance
In some states, if you make payment arrangements with a creditor, you reset the start date for the statue of limitations. Even though no payment was made, it can be reactivated.
Features
If you have past due credit card debt that shows up on your credit file, it will remain for seven years, even though the statue of limitations may be three years. These are two different features.
Function
The statue of limitations begins from the date you miss a payment or from the date that a creditor sends you a demand notice. If you last paid your debt on Feb. 20, 2009, and the statue of limitations in your state is three years, you have until Feb. 20, 2012, as the date for when the statue will run out. If you state goes by the demand letter, that will be the date used. Example: If you last paid on Feb. 20, 2009, and the creditor sends a demand notice on Aug. 20, 2009, then the statue runs out on Aug. 20, 2012.
Expert Insight
Some states will start the statue of limitations all over again if you make a partial payment. It's always best to see what the rules and regulations are in your particular state.
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