Statute of Limitations for Debt Question

[kerivoice]

Hello,

Could someone please tell me where to find the laws for Oregon and Washington states on the Statute of Limitations on unsecured debt such as credit cards and medical bills?

As I understand it, once the Statute of Limitations is reached, a debt or bankruptcy automatically comes off a person's credit report.

(Does it really automatically just disappear after a specified period of time or does one have to do something to get it removed after said period of time?)

I believe that for bankruptcy in Washington it is 10 years (unless it has changed due to the new bankruptcy laws).

And I think that for unsecured debts the time is seven years but I believe it varies by state?

Any information, resources, references or help regarding this matter would be appreciated.

I am specifically interested in Washington and Oregon laws and am seeking the actual reference numbers if possible so I can look them up myself.

Thanks for your help,

Keri

P.S. Also...how long does one have to live in a particular state before the laws apply to them? What if, when the debt was originally past due, the person used to live in another state? For example, they now live in Washington but when the debt first became delinquent they lived in Oregon? Or in any other state than Washington where they live now? Are the Washington laws still the correct ones to refer to?

[StressPot]

Try here for Washington State:

http://apps.leg.wa.gov/RCW/default.aspx?cite=4.16

And for general WA law help try:

http://www.washingtonlawhelp.org/WA/index.cfm

I haven't read up much on Bankruptcy but I am sure these links will shed a bit of light for you. I am unsure of Oregon, but I will give you this general link:

http://www.oregonlawhelp.org/OR/index.cfm

P.S. Also...how long does one have to live in a particular state before the laws apply to them? What if, when the debt was originally past due, the person used to live in another state? For example, they now live in Washington but when the debt first became delinquent they lived in Oregon? Or in any other state than Washington where they live now? Are the Washington laws still the correct ones to refer to?

That is a good question! And one I unfortunately do not have an answer to. What I do know is that if you initiated a debt in one state (OR) and you move to another state (WA) then the current laws of the state you reside in (WA) apply.

The creditor may initiate litigation in the state the contract was initiated (OR). This seems to be a rare event though because of the cost to the debt holder to do this and domesticate the judgement to your current state of residence. This applies only to the litigation aspect - look to WA law for consumer protection and bankruptcy if you indeed live here now.

StressPot

[kerivoice]

Thanks! That was very helpful information.

After more online investigation I discovered that I was a bit confused.

I was under the impression that the state Statute of Limitations and the time that a debt falls off the credit report were the same.

However, if I understand the information I've found correctly, the Statute of Limitations is the law limiting how long a debtor has to try to collect the debt--it has nothing to do with how long something is on your credit report.

I also found that the limit to how long something lasts on your credit report and when it drops off the report is actually found in the Fair Credit Reporting Act (FCRA) and is a totally separate issue from the state Statute of Limitations.

At least that's what I think I've found.

Anyone want to chime in on their interpretation and/or if I am right or wrong about the two being separate issues?

A confirmation would be great as I'm sure others have been confused by the same issue.

Thanks...I love this site! So very helpful!

Keri:)

[StressPot]

However, if I understand the information I've found correctly, the Statute of Limitations is the law limiting how long a debtor has to try to collect the debt--it has nothing to do with how long something is on your credit report.

I also found that the limit to how long something lasts on your credit report and when it drops off the report is actually found in the Fair Credit Reporting Act (FCRA) and is a totally separate issue from the state Statute of Limitations.

It's complicated at first, but the more you read it over, the more it makes sense.

The Statute Of Limitations is the time period the OC (original creditor) or JDB (Junk Debt Buyer) has to sue you for the supposed debt.

They CAN keep trying to collect in WA if it's past the SOL. They can call you, they can write you letters, et al. If you are taken to court AND you can prove it is past Statute, you have a great defense - and the OC/JDB is wasting their money.

There are only 2 states in the union (Wisconsin being one) where if it's past the SOL, they cannot pusue it anymore unless they want to break the state laws. Big no no, and they could be fined/sued for it.

You are correct - the SOL defined by state law is different then how long a trade line can be reported on your CR. That is defined as 7 years by the FCRA.

If you have more questions, please let us know and post in the forums!

StressPot

More info since you live in WA: Collection Agencies and Collection Law Firms need to be licenced to collect in our state. If they send you a dunning letter (letter demanding payment) they have to break out the total. The total should show the principal and break out all of the fees, in the least. They cannot call you more then 3 times per week. The law says CALL, not contact. Contact would mean they actually talk to you. Defend yourself and document all violations! Lets keep these CA's honest!

Oh and last thing - the FDCPA does NOT apply to Original Creditors. It only applies to CA's/CA Law Firms and JDB's.

[StressPot]

Oh, and before I forget. In WA the SOL is 6 years on Credit Cards. I know the list posted here and elsewhere on the net says WA is 3 years, but our state law does nothing to support it.

StressPot