What does it matter if the SOL clock is restarted?

[delaney1]

All of the stuff makes my head spin. I have a three year old collection that I may want to settle. If I have it in writing that they will not pursue me for the remaining balance, does it matter if SOL clock restarts in terms of a lawsuit? Thanks in advance.

[Anonymous]

Once you pay the balance the SOL will restart again. I think its worth it if A. You're going to Mortgage a home soon B. They can agree with PFD. 

[Anonymous]

It is my understanding that if you have settlement documents, they cannot pursue you for the remaining balance.

Also, by paying the account under settlement or in full, you will be updating the most recent activity on the file which kind of re-ages the damage it does to your score, but you won't be reaging the SOL (for getting sued) or the 7-year clock to have it removed.

If you didn't pay, you should be concerned about the SOL because creditors may view that a threat against loaning you more money....specifically on a mortgage.

[Anonymous]

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@delaney1 wrote:

All of the stuff makes my head spin. I have a three year old collection that I may want to settle. If I have it in writing that they will not pursue me for the remaining balance, does it matter if SOL clock restarts in terms of a lawsuit? Thanks in advance.

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Settled is settled - legally there is no balance to pursue. "Paying" does not reset SOL. SOL is only reset when you FAIL to make payments on a repayment agreement. It is the failure to abide by an agreement that creates the new SOL, not payment.

[RobertEG]

+1

If, however, the consumer were to make a voluntary, partial payment towards the debt, the owner might then argue that the payment brings into play a new SOL.

Additionally, the debt could be sold to another who would not be bound by any promise of the prior owner.