Will Disputing My Debt Restart the Statute of Limitations?
Yes, disputing your debt can restart the statute of limitations. Disputing a debt means that you accept its existence but believe it’s inaccurate and would like the debt collector to prove it’s accurate. It is important to note that disputing a debt does not mean you are assuming its validity or promising to pay it.
When you dispute a debt, the collector must investigate the accuracy of its records and provide proof that it is accurate. If they can’t provide proof, the debt may be removed from your credit report, or its amount could be considerably reduced.
However, disputing a debt also forces the collector to restart the clock on when they can sue you. This means that even if the statute of limitations has expired, disputing the debt could potentially make you liable again. It is important to weigh your options carefully before disputing a debt and always consult credit repair services in California for the right advice.
What Can I Do to Protect Myself?
The best way to protect yourself from debt collectors and the statute of limitations is to keep track of your financial accounts and debts–this will help you stay up to date on the status of any debt and its statute of limitations. Additionally, if a debt is approaching its expiration date, it is important to ensure the collector does not restart the clock by sending you a written notice or calling you.
How Long Is the Statute of Limitations?
The statute of limitations for debt collection varies from state to state. Generally, it is between three to six years from the date you last paid the debt. Collection agencies may still send you letters after the statute of limitations has been reached, hoping to get you to pay the debt; you can use those letters to get a favorable judgment if they decide to sue you.
You may be wondering how to find out which collection agency you owe money to, and the answer is simple—you can search for public records online or hire a credit repair company, like The Phenix Group, to do it for you.
What Can Restart the Statute of Limitations?
Apart from disputing your debt, certain actions can restart the statute of limitations on a debt.
Making a Payment on the Debt
You reset the clock if you make a payment on the debt, even if it’s just a dollar. Even if the statute of limitations has expired, you can be held liable for the debt.
Acknowledging the Debt in Writing
You can restart the statute of limitations by acknowledging a debt in writing. This could be in a letter to the debt collector or a text message or email discussing the debt.
Agreeing to a Repayment Plan
If you agree to a repayment plan with a debt collector, you may extend the statute of limitations. This is especially true if you make a payment on the plan or sign an agreement for it.
In Summary
Hiring a credit repair company like The Phenix Group may be your best bet to protect yourself from debt collectors. With our help, you can find out when your debt is due to expire and how to dispute it or make a payment without restarting the clock. You may also learn how long a repo stays on your credit report and what you can do to get it removed.
By taking the necessary steps to understand and protect yourself from debt collectors, you will be able to better manage your financial situation and stay on top of any debt you owe.