How Statutes of Limitation Work

Understand Your Statutes of Limitation

The statute of limitation (SOL) on a debt is the length of time that it can be collected through the courts. Understanding the SOL is important to your credit repair success.

Collectors and the SOL

If you are confronted by a collector about a debt that is beyond the SOL you have several options you would not otherwise have. If you let the collector know that you are aware of the SOL they should be very willing to negotiate, as they have no more leverage. Or, should you decide that you do not want to pay the debt, you may safely ignore it until it falls from your credit report. You may even send a cease communication letter to the collector (FDCPA Section 805) and they will disappear from your life forever. If an aggressive collector does attempt to sue you for a debt that is past the SOL you must show up in court and claim your SOL defense, but the case will be dismissed.

Worthwhile SOL Facts

  • SOLs are debt type and state specific. They are easily researched on the Internet. If you are in our credit repair program we will do this research for you.
  • SOLs have no bearing on reporting period limits and are often considerably shorter.
  • The SOL clock does not start with the collectors reporting date, nor can it be reset by the sale to another collector. The SOL clock starts on the date of your initial default on the original debt.