The term statute of limitations is a term that is generally used to describe the amount of time that is given to file suit against another person, party, business etc. When speaking in relationship to a debt, the term is not as straightforward as one may think. For example, in terms of a crime, a statute of limitations is fairly straightforward.
When it comes to debt, however, there are several factors that can have and do affect the “ticking of the time clock”. As this article originally posted in Readyforzero.com points out, determining when the clock starts and stops can be a recipe for disaster.
There are so many factors that come into play when you owe a debt. Have you left the country? Did you make a promise to pay or speak with a debt collector? When was your last payment? Are you the debtor or a personal guarantor?
If you are unsure of the amount of time left on the life of your debt, it may be time to speak with a qualified debt settlement attorney. An attorney who focuses in this area can advise you of the statute of limitations that remain on your debts. In addition, a debt settlement attorney can negotiate for principal reductions in the total amount that claimed due and put debts to rest once and for all.
Author: Kevin Fallon McCarthy