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What actions causes the override of SOL and start the clock again

Rebuild2022
Super Contributor

What actions causes the override of SOL and start the clock again

I know making a partial payment on the account would override the SOL and start the clock again.

What if some one makes verbal commitment but does not pay any money towards the CO account would cause the clock start again?

What actions would cause the SOL override and start the clock. 

Gardening since 08/2020
5 REPLIES 5
FireMedic1
Super Contributor

Re: What actions causes the override of SOL and start the clock again

Restarting the statute of limitations can happen in a few ways, including:

  • Making a payment: Making a payment on an old debt, whether in full or part, revives it, essentially restarting the clock on old debt.
  • Agreeing to pay: If you acknowledge that the debt is yours and agree to pay, the statute of limitations on your debt will start over.
  • Making a charge: If you have old credit card or revolving debt and you make a charge to your account, the clock on your old debt will restart.





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Message 2 of 6
LaHossBoss
Senior Contributor

Re: What actions causes the override of SOL and start the clock again


@Rebuild2022 wrote:

I know making a partial payment on the account would override the SOL and start the clock again.

What if some one makes verbal commitment but does not pay any money towards the CO account would cause the clock start again?

What actions would cause the SOL override and start the clock. 


Acknowledging the debt is yours and promising to pay/making a payment arrangement does reset the SOL, but as you know, does not reset the reporting period.

 

+1 to what @FireMedic1 laid out.

 

I would avoid any promises to pay without the intention. Honestly, IMO/IME best bet is to wait until you have a chunk of change to offer a settlement to avoid any issue with resetting the SOL and running the risk of being sued.




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Message 3 of 6
RobertEG
Legendary Contributor

Re: What actions causes the override of SOL and start the clock again

Reset provisions are not standard for all states.

Each state defines its own conditions for reset of the running of the period for initiating a civil action on a debt.

 

What is both your current state of residence and the state in whch the contract that created the debt was executed?

Message 4 of 6
sjt
Senior Contributor

Re: What actions causes the override of SOL and start the clock again

The other posters are correct but it also depends on what state you reside in.
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Message 5 of 6
jmw1
Regular Contributor

Re: What actions causes the override of SOL and start the clock again

It's safer to assume a verbal committment (likely recorded) will reset the SOL and you can be pleasantly surprised if it doesn't in your state. Don't commit to anything at all orally or in writing unless you are cutting a deal to resolve with a lump sum. 

Message 6 of 6
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