I work for a debt settlement company.
A client believes he is free from debt after 4 yrs if they havent collected. Is this true?
I’m very happy to assist you to help this client.
I believe the client is talking about the statute of limitations. The only states it is four years are California, Pennsylvania (no garnishments in PA), and Texas (No garnishments in TX).
It is interesting that in two of the states consumers cannot be garnished for credit card debts so dealing with debts in those states would adjust the game plan.
Sometimes that statute of limitations can stop if you leave the state and the time barred statute used is not clearly set in stone. It can be the state the person lives in, the state the creditor was in or the state defined in the agreement.
To make it more complicated, making a payment or acknowledging it is a valid debt can start the clock over again.
Tell the client to consult with an attorney licensed in their state before that hope the statute of limitations will protect them. And remind them that just because the debt may have exceeded the statute it can still be collected on.
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