Statute of Limitations for credit card debt question?
October 3rd, 2009
paperclip asked:
I have been told the statute of limitations for credit card debt in Texas is 4 years. After 4 years, the credit card agency can no longer sue you. After those 4 years have passed, are all of the negative items removed from your credit report? Or is it 7 years?
I have been told the statute of limitations for credit card debt in Texas is 4 years. After 4 years, the credit card agency can no longer sue you. After those 4 years have passed, are all of the negative items removed from your credit report? Or is it 7 years?
The negatives stay on for a full 7 years.
Bankruptcies and foreclosures are 10 years.
After four years they can’t sue you in court. They can continue to try and collect and yes it stays on your credit report for seven years.
Even if they sue and get a judgment, there are few ways for them to collect. Texas won’t garner your wages. They can’t touch your retirement,or your home if you homestead it.
The link below has a lot more information.
Derogatory items age off your credit report 7-1/2 years from the date of first deficiency. This is per the FCRA and nothing restarts the clock
The Statute of Limitations (SOL), the timeframe to bring lawsuit, varies from state to state. Typically the SOL starts from the date of last activity or last payment. Making payment or in some cases acknowledging the debt, restarts the SOL.
People often confuse and merge these two things.
The SOL is an affirmative defense. If you are sued, you have to show up and use the SOL as a defense. If you don’t show, the creditor will get a default judgment, even if the debt is beyond the SOL.
paperclip, I found a nice online list of Texas credit card resources. Try calling a nearby service and they can answer your questions.