It is possible that you are the part of several people out there who are wondering: is there a statute of limitations on credit card debt? This kind of question is quite bothering for those people because if they don’t find the answer, it can lead them to make some mistakes which will only make their financial condition become worse. Surely, they don’t want such condition to happen but they also are not sure about what to do when it comes to the statute as mentioned before. Well, here, we are going to try to discuss about such matter. And since this kind of topic is rather complicated, you may want to enrich yourself with the basic of financial world especially when it comes to the credit card debt.
- What the Statue Actually Is
Before we carry on, it’s definitely a good thing to let you know about what the statute actually is because it will make things easier for you later on to comprehend the more complex things. Alright, the statute of limitations is actually related to the limitation within the time window for the creditors and also debt collectors to sue the debtors. What kind of sue we are talking about here? It is about the nonpayment of credit card bills.
- Why the Statute Exists
The statute is made in order to protect the people and it’s protected by the law. The people who have nonpayment of credit card bills can be protected from claims which are brought right after the evidence has gone. That is why if you have unpaid credit card debt, you really need to know your own statutes. That way you can take advantage of it and you can feel more protected.
- How It Works
Well, basically, the statute works differently according to the state where you live in. For example, Alabama has 3 years of statute limitation while Arkansas and Colorado have 5 and 6 years. You can actually take a look at the chart for the time limit if you want to know the more detailed information about it.
- Any Additional Information?
You must understand that most state laws and also codes actually do not use the terms of credit cards or even credit card agreements as their references. Instead, the usual term used is written contracts. It’s also possible for you to hear about open accounts. That is why you should not feel confused when you hear about those terms. Also, the judges will decide the case specifically by interpreting the state laws in different way. However, the rulings of those court can possibly be overturned later on.
Understanding those things above may take some time for you but it’s definitely really necessary. You can really get the protection once you have understood those matters. The information above is only a little but it should give you some insights about the matters. It’s highly expected and hoped that you can carry on with your own searching on such topic so you can comprehend the whole thing completely.