How to Repay Old Debts Without Restarting the Statute of Limitations

A statute of limitations is a legal timeframe for which legal action can be filed over an event, such as an auto accident, violation of statutes or administrative laws, medical malpractice or a debt such as credit card debts or loans.

In regard to debts, the statute of limitations and time of reporting said debt are two separate occurrences. The former is the time allowed for a creditor to begin legal proceedings to recover the debt, while the latter is the amount of time a credit bureau is allowed to report a debt.

Instructions

1

Determine if the statute of limitations has passed. Statutes of limitations vary by state, so it is necessary to look up and become familiar with your state's statutes regarding debt collection. The minimum is typically two years and the maximum is fifteen years. Allow for a window beyond the state's statute of limitations of at least two to three months.

2

Establish the veracity of the debt. The debt should be confirmed by way of the credit bureaus. Request copies of all three credit reports. The federal government allows for one free copy of each of the credit bureau's reports per year. The date that appears on the credit report will be the last date reported to the credit bureau. The reports will also include the date first reported and date of last activity.

3

Contact the creditor by phone. Do not send mail or email as written documentation inquiring about a debt or offer to pay may restart the statute of limitations. Do not make a promise to pay with the creditor's representative until you know that the statute of limitations do not restart from an oral agreement. In some states, any agreement or acknowledgment of the debt constitutes activity and restarts the statute of limitations.

4

Make payment arrangements for a one-time, lump-sum payment. Entering into a payment arrangement that amortizes the debt incrementally, whether written or, may restart the statute of limitations. Inquire as to having the debt removed from your credit report after the debt has been satisfied with the credit bureau(s), not the creditor to which the debt was owed.