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Will Collection Agency usually sue after the 7 years and before the 10 year SOL?

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Will Collection Agency usually sue after the 7 years and before the 10 year SOL?

Hello,

This community has been incredibly helpful in searching out information.

 

I know it isn't a black and white issue but I'm curious about people's experience and/or knowledge about the SOL and collectin agencies.

 

There is 1 collection on my credit report. It is high ($12k, started as $7k). It was origianally a bank loan. It's a long story but it was bad business debt of $45k that was refinanced (by my partner) and I am still paying, but for some reason, $7k of it was left which i didn't know about until I received the collection notice. My partner says that he doesn't know anything about it. I tried figuring it out years ago but didn't really get anywhere.

 

Anyway...... annualcreditreport.com indicates that it will be reporting until 4/2019 (which I assume is the 7 years). I live in WI which appears the SOL is 10 years. It is a local collection company that is primarily in the midwest. How likely, in your opinion, is it that they will file a law suit after the 7 years is up in April?

 

I hope that gives all the info.

Thank you for any insight!

Message 1 of 3
2 REPLIES 2
Legendary Contributor

Re: Will Collection Agency usually sue after the 7 years and before the 10 year SOL?

I would first check out the refinance documents if you can obtain them.

It is usual that the refinance typically requires discharge of the old loan.

What was only a portion of the debt included in the new financing?

 

Second, as a business loan, why is it reporting to your consumer credit report?

 

Third, does the bank still own the old debt, or did they sell it to the debt collector?

 

 

Message 2 of 3
New Member

Re: Will Collection Agency usually sue after the 7 years and before the 10 year SOL?

My assumption was the entire loan was refinanced. I do not know why there was some remaining, it doesn't make sense. Especially $7k and some change.

I may be able to get the refinance docs but would be tricky/difficult. If I end up getting sued, I would have to do more digging and see if I could get them.

 

I'm assuming it's reported to the credit bureau because we had personal guarantees for the business....

 

How do I find out if they sold it to the debt collector?

 

Thank you!

Message 3 of 3
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