Statute of limitations

[Brandogyrl]

I currently live in Illinois and the statute of limitations on the amount of time a creditor can sue is 10 years. I am considering going to grad school, if I was to be accepted in a grad program in another state and of course relocated to that state then would my debt would be under that states statute of limitations?

[pford]

No. I believe it's where the debt originated.

[Brandogyrl]

Thanks. I misread the statute, its actually 5 years-not ten years on open ended accounts.

[momof5]

Actually, most judges will use their own state's statute of limitations. The CA will have to sue you where you live. Per Fed Law, the CA *can* pick the higher statute, however, some states - like FL won't allow it. FL SOL applies unless the prev state's SOL is shorter and then that SOL applies.

[Brandogyrl]

I'll just stay try to find a school here, I have 2 more years until statute comes into effect.

[Methuss]

Sol in illinois is only 10 years for signed contracts. Credit cards (open ended accounts) and oral agreements are 5 years. Breach of contract is 4 years.

[jcro]

Sol in illinois is only 10 years for signed contracts. Credit cards (open ended accounts) and oral agreements are 5 years. Breach of contract is 4 years.

I'm helping a co-worker with an account. what is the sol for one of those payday loan things in illinois? Is it a signed contract or another type of loan?

[Methuss]

It's a signed contract. However...

The wage assignments are not enforceable...they are actually illegal and violate the Truth in Lending Act.

[rising_score]

Sol in illinois is only 10 years for signed contracts. Credit cards (open ended accounts) and oral agreements are 5 years. Breach of contract is 4 years.

I found this posted on another message board. It is from an attorney that claims the SOL in Illinois on credit cards is 10 years! He claims that credit cards are written accounts. What do you make of this?

http://www.illinoislegalaid.org/index.cfm?fuseaction=home.dsp_content&contentID=2548

[momof5]

Just because a man (or woman) is a lawyer does not mean that he is a good one!

I have challenged lawyers on their interpretation of the law and have beaten them every time! In fact, I once sued an atty and got a significant amount of money I am not supposed to disclose.

I would look for IL case law before I took this person's word on it!

[LadynRed]

That 'lawyer' is full of bologna ! We've had this discussion over a FA.com on this exact same lawyer's article and 3 lawyers think the author is a complete idiot. Its VERY common for lawyers to NOT know anything about the TILA and that credit cards are NOT written contracts. SOL is 5 years.. not 10.

[rising_score]

That 'lawyer' is full of bologna ! We've had this discussion over a FA.com on this exact same lawyer's article and 3 lawyers think the author is a complete idiot. Its VERY common for lawyers to NOT know anything about the TILA and that credit cards are NOT written contracts. SOL is 5 years.. not 10.

Thank you for the clarification!

I feel much better now!

[InTheMidwest]

That 'lawyer' is full of bologna ! We've had this discussion over a FA.com on this exact same lawyer's article and 3 lawyers think the author is a complete idiot. Its VERY common for lawyers to NOT know anything about the TILA and that credit cards are NOT written contracts. SOL is 5 years.. not 10.

I live in IL and since no IL statute addresses credit card debt or defines it separately from other debt types, many judges here default to written contracts statutes. In the absence of case law to determine otherwise, some IL debtors have tried to use the federal TILA to make the case that credit cards are "open accounts," but since there are no statutes under which such accounts would fall, there seems to be no time limitations except those for which existing statutes apply, i.e., written, oral, promissory or breach of contract, thus most feel that credit cards do come under written contract statutes. Most lawsuit outcomes seem to depend on which judge is presiding at the time and his/her interpretation of the law. A friend of mine was sued on the 10-year SOL and lost her case. Another was sued twice on the 10-year statute but won both times due to insufficient validation. It's just potluck, I guess.

[rising_score]

So, if for example, I have an old department store charge-off from 7 years ago that a JDB bought, and the account is so old it is not on any of my credit reports, there is still a possibility that I could be sued within the next 3 years?

[InTheMidwest]

So, if for example, I have an old department store charge-off from 7 years ago that a JDB bought, and the account is so old it is not on any of my credit reports, there is still a possibility that I could be sued within the next 3 years?

Again, this seems to be an unclear area, at least in IL. There are a couple schools of thought about department store credit cards. One is that if they are "pure" department store cards funded by a financial institution that is also part of the parent company, or "self-funded," they fall under the UCC which is usually interpreted to mean a 4-year SOL. IF a department store card co-lists a bank card on the front, like Visa or MasterCard, and is bank funded, then they fall under the written contract statutes. Another interpretation is that they are all simply credit cards which are accompanied by a "signed, written agreement" thus fall under the written contract SOL of ten years. I'm not sure how these arguments play in IL, I have not heard an outcome of a lawsuit based on department store card debt. Obviously, it is time for clarification of state statutes so there is uniform understanding among judges and debtors alike.

[Brandogyrl]

I agree there definitely needs to be clarification so that it can be crystal clear--instead of a roll of the dice...