Hello, I am a newbie and I am hoping to clear up some confusion with what I just read: "The Statute of Limitations for Credit Reporting began when your uncured delinquency began. The Statute of Limitations for suit began when you stopped paying, presumably in 2001." Is the incurred delinquency basically your date of last payment?
Taken literally, this statement is incorrect. (what if you don't miss the "first payment", or the second, or the 14th?) Every time you make a payment, the SOL clock is reset. Then there's a 60-day (or so) buffer that applies in some cases. For me, the first thing is to determine is WHICH SOL rule applies to the debt. Is it a 3-year, 4-year, 6-year, or ?-year type of contract? Then count back and see where you lie. Personally, I wouldn't try cutting it to within a week or so of any particular deadline. If it's within 90 days or more, then I'd feel safe. The reason is that courts can and do allow a lot of leeway in various situations. I personally wouldn't want to give 'em the chance to make a case. It's less of a hassle when it's absolutely indisputable. Of course, that doesn't mean they won't try (as you should as well), but it's easier to defend. (I'm sure others here have a much more aggressive approach and would feel comfortable filing an action one day over the line. But, IMO, if you're looking for a REALLY SOLID CASE, don't be in a hurry. But that's just me.)
In laymans' terms, its the first missed payment that lead to the account status that makes sending the account to collections or to court a reasonable action to get the debtor to pay. This depends entirely on your state's SOL laws. In some states admission of liability (written acknowledgement) will reset the SOL, in others an offer to pay will reset. In some, neither will do. Check out this link, but double check directly with your state's laws in case this website's info isnt correct
Then SAY THAT! But, don't forget that many types of businesses engaged in extending credit are forbidden from holding onto non-performing assets for more than a fixed time period specified by law. Thus, sending accounts out for collection isn't necessarily guided by "reason" so much as the fact that the law says they can't sit on them forever. Once they become "non-performing", the note holder has a fixed amount of time to liquidate them and get them OFF their books. I guess it has to do with an issue whereby non-performing assets held on the books of a financial institution are still reported as "assets", regardless of their non-performing status. This can mislead shareholders into believing the value of the company is far higher than it really is. (Imagine buying a billion dollars worth of junk debt for fifty grand and being able to claim it's actually WORTH $1B on your books!) Good catch. I didn't think about that.
This is a good thread about restarting the SOL: http://consumers.creditnet.com/Discussions/credit-talk/t-help-needed-please-66549.html
I should have been clearer on the wording: The SOL starts from the date the account first went "deliquent", AND was never brought current. So yes, if you miss two payments, and then bring the account "current" by paying ALL past due, the SOL starts the next time the account goes deliquent. If you make a payment, but do NOT bring the account current, the SOL does not change.
