Hi I am new here. I have been reading a few forums but I am still confused. From what I understood, a 7 year old debt starting from the first default is uncollectible by Federal Law. Yet there is also the issue of the state SOL. I live in NY and the SOL here is 10 years. So I do not understand the exact situation. If after 7 years the CAs try to get a judgement, is the 7 year rule my defense? Please someone explain all of this to me cause I'm totally confused as to when does the debt become uncollectible and why? Thanks
Mecro, Please read the FAQ section and you should find many of your answers there. Good Luck, Sirrowan
Mecro, The SOL for a debt in NY depends on the type of debt. If its a credit card, then the SOL in NY is only 6 years, its 10 for a written contract. The '7 year rule' you speak of is ONLY for information on your credit report. If its a written contract with a 10 year SOL, then yes, the 'bad' entry on your credit report will drop off after 7 years, If its a credit card (open-ended account), then the SOL has expired and will also drop off after 7 years from the last activity date. IF a debt has expired under your state's SOL, then you can no longer be sued for collection of that debt, period. If they DO try to sue, THEN you go to court, with proof of the SOL expiration (have dates!) and that is your defense. If the SOL IS 10 years for this debt, then you're still 3 years away from the expiration and they can still legally sue you.
Ladynred: Thanks thats great. So the debts I am concerned with are credit cards which were charged off. I have my credit reports as proof of first 30-day default, which is the when the countdown for the SOL starts, am I correct? Also are the credit reports acceptable proof? Since some ppl do not like question to be asked even though I searched this whole board and could not find the answer, do you mind if I email you Ladynred? Thanks
According to any of the sites that I have checked, the SOL for Oral Accounts, Written Contracts, Open Accounts, and Promissory Notes are all 6 years for the state of New York. If you have other information, please give me your source.
