Can A Debt Be Enforced If The Statute Of Limitations Runs Out?
If the statute of limitations has expired that means that the debt cannot be enforced by lawsuit, that does not dismiss the debt and the creditor can still leave it on the credit report for 7 years (excluding some public records, those can remain for 10 years) but legally the debtor does not have to pay it if the statute has expired. Additionally tax liens remain on credit reports for 7 years from date satisfied not filed. If they remain unpaid they can stay longer, however they are only collectable for 10 years. Keep in mind that the tolling of the time can be extended by offer and compromises and payments.
This FAQ was provided courtesy of Carreon & Associates
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Creditors Rights Articles
- Can A Settlement Be Negotiated With A Creditor For Less Than Owed?
- Can unsecured debts be settled?
- What Is A Secured Collateralized Debt?
- Does The Debtor Have To Have A Good Reason To Want To Settle?