- Statutes of limitations protect debtors from old debts and provide a legal defense against lawsuits for debt collection. If a creditor sues a debtor in a state court for the repayment of an old debt, the debtor can ask the judge to dismiss the case in accordance with state law. The creditor has no legal right to bring future legal proceedings against the debtor.
- If a debt collector attempts to collect an old debt, the BCS Alliance websites warns against any admissions that you own the debt or agree to repay it. According to the website, offering to repay an old debt or sending in a payment resets the statute of limitations. Advise the creditor of your rights under the Fair Debt Collection Practices Act and remind it that the statute of limitations has run on the debt.
- The statute of limitations on credit card debt in New Jersey is six years. Compared with other states, six years is one of the longest statutes of limitations in the country. Only two states -- Wyoming and Rhode Island -- have longer statutes of limitations. At three years, states such as Delaware, Kansas and Louisiana mandate the shortest statute of limitation on credit card debt in the country.
- Even though New Jersey restricts the length of time creditors have to bring legal proceedings against old credit card debt to six years, creditors can still report such debt to the credit bureaus. Delinquent credit accounts remain on a consumer credit file for up to seven years. Having a negative payment history hurts your credit score and may disqualify you for lower interest rates in the future.
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