Is Age Really Just A Number?

Looking at 78 year Jim Morris, one may consider age is “just a number”, but in the credit world, age is definitely more.  When considering debts there are two age limits- or statutes of limitations you want to keep in mind.

The first statute is how long a debt collector can sue you for a debt.  Keep in mind that the clock starts the month you stopped paying that led to the charge off of the account.  Each state has their own varying time lengths depending on the type of obligation (open-ended, written, verbal, or promissory).  Once this statute has been reached, as a consumer, you are protected from suit.  Keep in mind that there are varying circumstances that can come into play that could alter the statute like where the bank is chartered, whether or not you made a payment on the debt, and sometimes even if you admit to ownership of the debt.  We suggest you seek the help of a professional or an attorney to help determine the statutes of your debts, but for the state of Florida, most debts are 5 years.

The second is how long something can be reported on your credit report.  For most derogatory accounts, that limit is 7 years.  Again, the clock starts on the month that led to the charge off.  It doesn’t matter how many times the debt was sold, the clock starts with the original creditor.  Once the seven-year mark is reached, it can no longer be reported on your credit report.

Make the Choice.  Make the Change.  Delta.