How to Extend the Statute of Limitations by Making a Payment

The statute of limitations means that after so many years have passed without you making a payment on a debt, the creditor cannot win a lawsuit against you in a court of law. Each state has its own statute of limitations for debt. The time frame for the statue of limitations is two to 15 years depending on your state. In some states, if you make a payment on your account, the statute of limitations is activated all over again.

Instructions

1

Review the state laws for your state (see References). In some states, the statute of limitations is extended if you make a partial payment. This rule does not apply for every state. Certain states will extend the statute of limitations when you send in a new written agreement to your original creditor or the collection agency indicating you will begin making payments, according to Credit Info Center. This rule applies to the following states: Arizona, California, Florida, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New York, Texas, Virginia, West Virginia, and Wisconsin.

2

Contact the creditor for the terms and conditions of your new agreement. If you plan on making payments on your account, make sure they fit within your budget. Tell the creditor what you can pay. You can make out the agreement and send it to the creditor with your signature. You also can have the creditor prepare the new agreement. They will send you a copy to confirm that an agreement was made.

3

Send in a payment. Your payment will be applied to your account. Some states will extend the statue of limitations without a new written agreement when a payment is received.