2 People Helped
Member Since: September 2008
About Me: Just trying to get by, like everybody else!
The Statute of Limitations on debts with a written contract (in California) expires 4 years from the DATE OF YOUR LAST PAYMENT. Creditors and collection agencies CAN sue you for debt that is past statute (you can sue anyone for anything), that doesn't mean that they will be successful. If you make a payment on a debt, even a debt that is past the Statute of Limitations, THAT is what restarts the clock on the Statute of Limitations.
If you are sued for a debt that is past the statute, your defense is that the Statute of Limitations has expired on the debt (be prepared to prove that). If you ignore notice that you are being sued on a statute expired debt and don't show up to inform the court that the debt has expired, per the Statute of Limitations, you will lose by default, and a debt that you wouldn't have had to pay, will now be a judgment against you.
I am NOT an attorney. I am someone who has, unfortunately, had to deal with debt collectors. Things worked out well for me. Knowledge is power!
Here's a link that may be of help. I recommend looking up the actual statuted for yourself...
larhonda's reply was:
Enter Your Reply It means using less than 10% of ALL of the credit you have available to you. Some people keep their utilization under 20%, which is still pretty good.