Does Disputing a Debt Restart the Statute of Limitation? - The Phenix Group (2024)

FAQs

Does Disputing a Debt Restart the Statute of Limitation? - The Phenix Group? ›

Yes, disputing your debt can restart the statute of limitations. Disputing a debt means that you accept its existence but believe it's inaccurate and would like the debt collector to prove it's accurate. It is important to note that disputing a debt does not mean you are assuming its validity or promising to pay it.

Debts have an expiration date, known as the statute of limitations, which protects you from creditors pursuing legal action after a certain time. But disputing an old debt could accidentally restart the clock on your repayment obligations.

Collection agencies cannot report old debt as new. If a debt is sold or put into collections, that is legally considered a continuation of the original date. It may show up multiple times on your credit report with different open dates, but they must all retain the same delinquency date.

When the credit reporting time limit does expire for a debt, it should drop off your credit report automatically. If for some reason, an old debt remains on your credit report, you can use the credit report dispute process to have it removed.

The amount of time that a debt collector can legally pursue old debt varies by state and type of debt but can range between three and 20 years. Each state has its own statute of limitations on debt, and after the statute of limitations has expired, a debt collector can no longer sue you in court for repayment.

Yes, disputing your debt can restart the statute of limitations.

Making a payment: Making a payment on an old debt, whether in full or part, revives it, essentially restarting the clock on old debt. Agreeing to pay: If you acknowledge that the debt is yours and agree to pay, the statute of limitations on your debt will start over.

Arizona has a six-year statute of limitations to enforce installment debt created by a written contract, which is codified at A.R.S. § 12-548. A lender must enforce the debt through foreclosure or a lawsuit within six years after the cause of action accrues.

Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.

In Missouri, the statute of limitations for open accounts — which often includes credit card debt — is five years. The statute of limitations for debts backed by written contracts is 10 years. This often includes medical bills.

Can you dispute a debt if it was sold to a collection agency? ›

Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you do not believe you should pay the debt, for example, if a debt is stature barred or prescribed, then you can dispute the debt.

You should dispute a debt if you believe you don't owe it or the information and amount is incorrect. While you can submit your dispute at any time, sending it in writing within 30 days of receiving a validation notice, which can be your initial communication with the debt collector.

If you've already been given a court order for a debt

There's no time limit for the creditor to enforce the order. If the court order was made more than 6 years ago, the creditor has to get court permission before they can use bailiffs.

The statute of limitations for debt collection under Mississippi law is typically 3 years but there are exceptions. If the statute of limitations has passed, you can no longer be sued for the debt and you can ignore the debt collector.

While the amount of time varies depending on the specific type of debt and the statute of limitations in your state, it generally ranges from three to six years.

If you haven't reached the time limit yet, making a payment to your creditor will always reset the time limit. Even if it's just a small payment, or if someone else makes a payment on your behalf.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

Also, if the debt collector is collecting a valid debt, avoiding or ignoring their call usually won't make them go away – they may instead find other ways to collect the money from you, including by filing a lawsuit.