Help anyone please. I have a creditor who is attempting to collect a debt that exceeds the statue of limitation of the state I incurred the debt in. At the time of this debt, I resided in a state who's SOL is 4 years. I now reside in a state who's SOL is 6 years, which would give the creditor an additional two years to try to collect. Question - which state statue supercedes? Any input would be greatly appreciated.
Re: StatuTe of Limitation ??? The Statute of limitations in the state where the debt was incurred is the one that affects you. Make sure you are dealing with the statute of limitations for debt collecting on the exact type of debt you are dealing with (mortgage/credit card/auto loan etc) they sometimes differ. Here is a sample chart of the SOL dates for types of delinquent debt in different states: Statues of Limitations Also remember the SOL is for filing of lawsuits and does not necessarily prevent them from attempting to collect on the debt (unless they have sold the debt to a 3rd party debt collection agency), but be careful in what you state using the SOL as a defense. Hope you get the monkey off your back. -Dave
Re: StatuTe of Limitation ??? I needed to add my two cents on this one. What Nave said is probably generally true, but I wanted to share my personal experience, which is slightly different. I used to live in MI, which has SOL of 6 yrs. on cc debts. I incurred my debts there. Now I live in CA, which is 4 years. I had the same question you do. I consulted with a credit attorney, and she told me that due to California's state laws, California's SOL would override that of MI's. Great news for me! My suggestion would be to make sure with an attorney. These laws are so vague, and each state interprets them differently. Good luck!
Re: StatuTe of Limitation ??? Here is an interesting thread debating the matter: Click here for SOL thread After reading it, I still believe the state you signed the obligation in, is the one that matters as far as the statute of limitations is concerned. As Penguin says some states may have laws that give you more rights as to the SOL from debts following you when moving and seeing Anthony's advice I would say it is best to consult an attorney in this matter. In either case, the SOL only refers to the time period you can be taken to court or even simply had a suit filed with the court, not the time period they can attempt to collect - again not 3rd party CA's but original creditors - 3rd party CA's are under statute limitations defined under the Fair Debt Collection Practices Act. -Dave
Re: StatuTe of Limitation ??? Dave: LOL, did I confuse you THAT bad? (Iâ??m joking, Dave.) Seriously though it is best to consult counsel, although just because the shingle reads â??attorney at lawâ? doesnâ??t equate to authority. Letâ??s put it this wayâ?¦ I recently looked at a 16 million dollar portfolio of California auto deficiencies, for purchase from BofA (long story why but nonetheless). A small percentage of the units (individual accounts) have relocated out of state, yet I and Bank of America use California as the due diligence basis for calculating SOL. Why? Because California is where the contracts were signed (originated) and therefore Californiaâ??s SOL applies. This is an industry standard and one collection agents follow when purchasing debt; state of origin applies â?? not current state of residence. Now while Penguin was advised that Californiaâ??s SOL is supposed to â??override that of MI's.â? I can mainly say that from a collection standpoint, state of origination is what the collectors will consider most. Secondly, one state cannot impose any overshadowing factor over a contract executed in another (as it would be contractual anarchy were that not the case).
Re: StatuTe of Limitation ??? I agree with Anthony -- the CA SOL does not "override" the other state's SOL for that contract, except for suits in California. If you entered into a contract in another state, you could be sued in the courts of that state and that state's SOL would apply.
Re: StatuTe of Limitation ??? Hi, everyone! Here's more info to chew on. Tell me what you think--does this apply to our thread at all? I plan to get in touch with another attorney to get a second opinion, but until then, please check out this article from nolo: www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#803
Re: StatuTe of Limitation ??? Oops, wrong one! Sorry... Here it is: www.nolo.com/encyclopedia/articles/cm/which_court2.html
Re: StatuTe of Limitation ??? I do think consulting an attorney is the best thing, especially if he/she is a friend and won't bill you for the advice (although all my lawyer friends get paid for their pro bono advice somehow It's all legal karma. -Dave
Re: StatuTe of Limitation ??? I moved to DC after living in MI and I have been sued in MI while not even knowing about it until I viewed my TRW and saw many default judgements. All they have to do is send a summons to your last known address and they can sue in court. Of course your never aware of it. As for moving to another state such as Cali to save three years off the debt SOL, I think thats BS. You can't do that. Besides, What if you move back to MI after living in Cali for a year or so? Is the MI debt valid again? I doubt if moving to another state will lower the SOL one bit. It must go by the state in which the debt was contracted.
