Statutes of Limitation
There is one more factor that will affect your credit repair efforts – the statutes of limitations.
Perhaps the most obvious statute of limitation is the 7 to 10 years that the credit bureau can keep a bankruptcy on file. However there are other statutes of limitations that state how much time a creditor has to sue you for a debt.
These statutes of limitation vary by state and might depend on what kind of debt is involved. In Kentucky, the statue is fifteen years for written contract and 5 for oral contracts. In Alaska for instance creditors can’t sue you after three years have passed since the delinquency. Also depending on what state or province you live in, the statutes on credit card debt could vary.
In some states you can renew an expired statute of limitation by making a payment on an old debt or just by acknowledging that you owe some money.
If the item on your credit report is an unpaid collection or unpaid account you will want to do some legal research to see what the law is in your state or province. While you are researching try and remember the following two points –
1. If a debt is still within the statute of limitations and you know you owe it then be very wary about disputing the information with the credit bureaus. You don’t want to renew interest in collecting the debt by drawing it to the creditor’s attention, (that is off course unless you are prepared to pay the debt off.)
2. If the stature of limitations is well past you can be more aggressive in trying to get an old debt off of your report. However if you choose to do this make sure that you don’t trigger the statute of limitations to start all over again.
If you are unable to handle the statutes of limitations matter all by yourself you can use the National Association of Consumer Advocates to get a referral to a reputable lawyer.