Reply
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: "The law limits how long you can be sued on a debt..."

It really depends on the state you are in.  There are 18 states that by simply making a payment does not restart the SOL.  In the rest of them making a payment can.  Some states require that there is a written agreement acknowledging a payment plan. 

 

No, in a PFD all you do is say I am in no way, shape or form acknowledging this debt.....

Epic Contributor
Posts: 20,269
Registered: ‎03-19-2007
0

Re: "The law limits how long you can be sued on a debt..."

 

The actual determination of whether an SOL has or has not expired can only be made by a judge.  It is not a fact that stands on its own.

SOL statutes only specify the criteria for its evaluation, such as when it begins, the type of debt, and thus the relevant period, and the occurence of any reset provisions.

 

You dont go into court with a clear determination that SOL has tolled.  The consumer asserts it, the plainriff can contest it, and the judge ultimately applies the law to the facts of the case.

 

If the consumer shows that SOL expired on date A, then later dates B of subsequent actions would not retroactively negate the earlier expiration.

Member
Posts: 17
Registered: ‎04-25-2010
0

Re: "The law limits how long you can be sued on a debt..."

Umm.... Does making small monthly payments toward a charged off account (oc) restart the sol in California? Kinda freaking out now. :-/
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: "The law limits how long you can be sued on a debt..."

No.  The statute of limitations is only extended by a new written promise to pay

Member
Posts: 17
Registered: ‎04-25-2010
0

Re: "The law limits how long you can be sued on a debt..."

So will it renew if I settle it after the sol expires?
Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
0

Re: "The law limits how long you can be sued on a debt..."


VanessaM wrote:
So will it renew if I settle it after the sol expires?

Not understanding the question? If you settle a debt, SOL doesn't matter because the debt is paid.

 

Are you refering to credit reporting time period?

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Established Contributor
Posts: 955
Registered: ‎02-02-2013
0

Re: "The law limits how long you can be sued on a debt..."

[ Edited ]

ALWAYS preface any communication by including a statement that you are in no way or manner acknowledging the validity of the debt at issue. 

Any settlement shall specifically EXCLUDE any acknowledgement as to validity of the asserted debt.

 

Never admit its your's unless of course you plan on paying it off and it doesn't matter to you.  The SOL can and often is reset by such admissions.


NFCU #1 Fan!! NO MOAR APPS TIL 10/13 Minimum!!
TU -746, EX - 721, EQ -745
Cards:NFCU Flag Visa Sig $10000, CSP $8500, AMEX BCP $2000 Freedom $3500, Disc IT $5000, Cap 1 Green $2100, Credit 1 CLOSED! AU on Amex Green, Discover $2000, Cap One Plat $1000
Member
Posts: 17
Registered: ‎04-25-2010
0

Re: "The law limits how long you can be sued on a debt..."

I'm sorry, I'm kinda new! In fact, I'm not sure m quoting correctly. :-/

Anyway, in my situation, I have an old charge off. If I understand correctly, the sol is 4 years, which I am long past. However, I've continued to make small gw payments monthly, the point of which was to keep me out of collections while I figured out the best way to settle the debt. Now I'm in the last year of the debt being reported, the debt itself still unsettled. I hope to settle the debt, but it won't likely be until after it falls off my reports.

Is there a chance it could pop back onto the reports after I settle it, even after I've already done the 7 years and it's gone before I do so?

The sol, I understand is completely different than the reporting length of time. I'd just hate to find out now that my payments were leaving me open to be sued when I thought I was in the clear on that.

Did that make sense? Sorry again for being unclear before! Thanks!
Valued Contributor
Posts: 2,661
Registered: ‎04-25-2011
0

Re: "The law limits how long you can be sued on a debt..."


VanessaM wrote:
I'm sorry, I'm kinda new! In fact, I'm not sure m quoting correctly. :-/

Anyway, in my situation, I have an old charge off. If I understand correctly, the sol is 4 years, which I am long past. However, I've continued to make small gw payments monthly, the point of which was to keep me out of collections while I figured out the best way to settle the debt. Now I'm in the last year of the debt being reported, the debt itself still unsettled. I hope to settle the debt, but it won't likely be until after it falls off my reports.

Is there a chance it could pop back onto the reports after I settle it, even after I've already done the 7 years and it's gone before I do so?

The sol, I understand is completely different than the reporting length of time. I'd just hate to find out now that my payments were leaving me open to be sued when I thought I was in the clear on that.

Did that make sense? Sorry again for being unclear before! Thanks!

Guiness will correct me if I am wrong because he is more verse in this element of reporting..

 

However, I believe a charge off has a concrete DOFD -- if you are making payments on a CO, unless you bring it CURRENT and its still open, and you go deliquent again, you will not reset the DOFD, and therefor, you will not reset the credit reporting time period for this debt... 

 

My reporting FCRA knowledge isn't as strong as other elements though..

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Epic Contributor
Posts: 20,269
Registered: ‎03-19-2007
0

Re: "The law limits how long you can be sued on a debt..."

Yes, it is possible to reset what could be a new, reportable DOFD after a charge-off, but that wont be the reportable DOFD that will be used to determine the exclusion date for the CO.

 

The statute specifically refers to the commencement of delinquency on the account that preceded the charge-off or collection at issue.

If the credtior reports a charge-off, and the account is subsequently brought current, the reportable DOFD with respect to that charge-off would not be updated.  The new DOFD is irrelevant to the OC, as it did not precede the CO.

However, if the account then becomes delinquent and referred for collection, the new date of commencement of delinquency would update with respect to any reported collection. 

 

Not likely in the real world,  as few accounts that are charged off remain open for future consumer use, and thus a new DOFD could not occur.

A charge off that remains delinquent, if referred for collection, would have the identical DOFD for both the CO and any collection.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.