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SOL Questions


tyeayo
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First off lemme say that this website has been a godsend, there is sooooo much good info here and it has jumpstarted me into getting my credit up to snuff. One question I do have though is this, I just am not too clear on what this means. I have 3 accts. in collections and 1 USAA Visa card that are within months of reaching there required 6 year SOL.....my question is do they jsut "Disapear" from my credit report?? Or do they stay on there but I am protected from being sued......when the SOL is up will my FICO increase??/ This whole SOL has got me a bit confused......

thanks for reading :):)

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The sol is the period of them they have to legally sue you in court, once that is up then they can still try to take you to court but you have a legal defense that the debt is time barred. Negative info stays on the credit report 7 years so you still have another year before they expire off of the credit report. Unless you can dispute it off sooner.

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There are a variety of types of statutes of limitations and its situational when they trigger. But when you mention a six year SOL, its almost certain to apply to your State of residence. And when the State SOl is up for your type of debt, The creditor basically can't sue when the State SOL is up because they waited too long. Or more accurately, you have an affirmative defense, no matter what the other proof the creditor provides, asserting the defense of SOL requires the case be dismissed. In certain cases someone is sued past State SOL. And if, in ignorance, they don't assert SOL, they can lose. And there are grey areas of the law regarding debt type or when the default started that can cause confusion or arguments. And State SOL's vary state to State

The seven year Federal SOL not only refers to lawsuits, it effects credit reporting. And after seven years the alleged debt can no longer be legally reported and must come off your credit report. So if you beat the State SOL of six years, it can still be reported for that additional year. And if reported, your scores will probably not improve.

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Techically, they have their choice. If they sue, they'll probably do it in the state in which you live now...because if they sue in the other, they'll have to "domesticate" the judgement to your new state before they can take your money. That's hard to do in most states.

Realize that even if the debt is SOL...they can still take you to court. If you don't show up, or if the judge doesn't agree its SOL, you could still lose. And, even if they don't sue...you still owe it, they can still try to collect it.

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Techically, they have their choice. If they sue, they'll probably do it in the state in which you live now...because if they sue in the other, they'll have to "domesticate" the judgement to your new state before they can take your money. That's hard to do in most states.

Realize that even if the debt is SOL...they can still take you to court. If you don't show up, or if the judge doesn't agree its SOL, you could still lose. And, even if they don't sue...you still owe it, they can still try to collect it.

For consumer debt, the FDCPA requires them to sue you where you live, but a state court in your old state won't care, so long as personal service is effected on you by one means or another. However, you can sue for an FDCPA violation and obtain all the actual damages flowing from their violation, and I imagine that a money judgment in a distant forum would be damages.

So they would have to pay you what you should have paid them, and then they would still have the problem of collecting that from you ... they would need to use the UEFJA to domesticate the judgment to your new state and it's possible that would fail, leaving them holding the bag and you holding their money. And having obtained a state court judgment in your old state, they wouldn't be able to sue you anew in your new state. So they would not have gotten ahead that way. At best they could get back to the position they were in before they sued.

Suing you in your new state would be better for them all the way around.

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To the OP:

Welcome fellow Washingtonian!! :)++

Check out the links in my signature for your collection agencies showing on your report. And smart to use 6 year SOL - written contracts.

Regarding SOL: The above advice is spot on.

Here are some links to other threads that will be able to help you get your feet wet (and your mind full of info!):

Abbreviations - http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=247970

Primer (and other info for newbies) - http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=276514

Someonesomewhere's "newbie primer" - http://debt-consolidation-credit-repair-service.com/forums/showthread.php?t=264049

Have fun and happy reading!

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