Wisconsin statute of limitations laws govern how long a creditor has to take a debtor to court over a debt. If you live in Wisconsin and either owe someone money, or someone owes you money, pay attention to the date on which a debt goes into default. That date determines how long you, or your creditor, has to claim your money via the court system.
Statute of Limitations
The statute of limitations on collecting debt in Wisconsin is six years for both oral and written contracts, as well as charge and credit card accounts. While not all debt collectors or creditors choose to go to court over a debt, they are within their rights to do so during the six years after a debt goes into default.
Credit Reporting
Many people get statute of limitations and credit reporting laws confused. While Wisconsin's statute of limitations on debt collection is six years, negative credit report information can hang on for at least seven years, depending on the nature of the debt.
Judgments
The statute of limitations for collecting a Wisconsin judgment is significantly higher than it is for collecting other types of debt. A judgment creditor has 20 years to pursue a debtor after the creditor wins his lawsuit. Judgment creditors have significant collection tools at their disposal, as well: If you owe a judgment, your creditor can garnish up to 20 percent of your paycheck as well as monies in your personal accounts. It can also put a lien on your home ---it can continue to do this until your debt is paid off or the 20 year statute of limitations comes to an end. Unpaid judgment debts can stay on a debtor's credit report for the duration of the statute of limitations on judgment collection.
Out of Statute Debt Collection
When approached by a collection agency about an old debt, consumers should be wary. Some shady collection agencies, as well as outright con artists, buy old debts, or information about old debts, and attempt to collect them even if they are beyond the statute of limitations. Under federal law, a debt collector must provide you with written verification of a debt, including the date on which the debt went into default or came due. If the debt is no longer collectible under Wisconsin's statute of limitations, send a written letter, certified mail, to the collection agency informing them of this fact.
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