Credit card debt is a common problem experienced by Americans everywhere, and the most effective legal defense is the statute of limitations, when it applies. However, the statute of limitations varies from state to state. This article is about the statute of limitations on debt collection in Kentucky, specifically.
The statute of limitations is basically the amount of time the creditor has to collect the debt. Each state has different rules about when it comes into effect. Generally, it is after you have missed a payment and, if you continue not to pay or acknowledge the debt, it continues to run out.
Once the statute of limitations has run out on your debt, your creditor cannot win legal proceedings to collect the debt. Of course, a debt settlement attorney can explain the particulars and tell you if your situation fits these requirements.
The length of the statute of limitations depends on your location, but it also depends on the type of contract you made concerning your debt. In Kentucky, there is a huge difference between written contracts, verbal contracts, and open accounts. For written contracts, you must wait fifteen years for the statute of limitations to run out. For verbal contracts or open accounts, such as credit cards, the statute only lasts for five years.
This does not mean that the debtors will stop attempting to collect the debt. More likely than not, they will keep trying even after the years have passed. They could even try to collect through a court. The statute of limitations defense should mean they will not win the case, though.
The statute of limitations does not include every type of debt. Student loans and income taxes are considered exempt from these statutes of limitations and can still be collected regardless of how many years have passed. Furthermore, while they may not be able to collect on the debts that are protected by the statute of limitations, the debt will show up on your credit report as being unpaid, and if you admit that you owe the debt or try to pay it off retroactively, then the statute of limits time period will be restarted and it will take another five or fifteen years for it to run out again.
The statute of limitations is different in every state, and only a licensed attorney can actually consult on your case. If you owe debt in Kentucky, the statute of limitations may be able to help you, but it does have its boundaries.
Kari discovered the magic of writing early, in elementary school, and has devoted every spare moment to it since. She writes fiction for her own amusement, and recently began writing articles for The Daily Tar Heel in Chapel Hill. Besides writing, she loves spending time with friends and family, reading, and drinking coffee. She defines herself based on her faith in God, her family roots, and her dream of one day publishing a best-selling novel.
- Alternatives to Credit Cards - November 4, 2014
- The Statute of Limitations on Debt in Kentucky - October 27, 2014
- College Students and Their Credit Card Debt - October 13, 2014