Archive for February, 2009
Card sharks: users seeing red – Hamilton Spectator
Card sharks: users seeing red Hamilton Spectator, Canada Since 2004, credit card balances have risen 40 per cent. A study carried out last year by the consulting firm Deloitte found Canadians spending ever more on their credit cards — we now have $1.30 in debt for every $1 of disposable income. …
Money market funds: A cost for playing it safe – Globe and Mail
Money market funds: A cost for playing it safe Globe and Mail, Canada But the fact that we're in a recession is reason for caution about these securities, which are based on baskets of mortgages, auto loans and leases, and credit card receivables. Should defaults surge in these rough economic conditions, these securities …
Quickies – Bank of America, Payday Loans, Divorce, 401k, Credit Report
When I need a break from answering questions I often take a look for some odd or interesting search terms that people used to find me. Below are some of the latest I saw today that I wanted to provide quick answers to. Steve Search Terms will bank of america negotiate debt – Yes but debt settlement can be tricky and not available in all situations. Get a professional to assist you that is experienced in working with Bank of America. i lost my job and can’t pay payday loans – Unless you get more money coming in soon to pay, it’s probably bankruptcy for you. upside down mortgage and divorce settlement – Two different issues. If you are getting a divorce settlement, great! If you are upside down on your mortgage , contact your lender to see what they can do to help you. Keep records of your communications and their response. cashing out a 401k – No!!!! credit report settled for less – I think you are talking about how a debt settlement will be reported on your credit report . The part of the debt you don’t have to pay back will be shown as a bad debt. Source: Quickies – Bank of America, Payday Loans, Divorce, 401k, Credit Report Other Related Articles to Read Teresa Writes In And Asks “What Should I Do Next?” Quickies – CCCS Consumer Review, Autos, Cards, Balances, and Debt Should We Use Freedom Debt Relief or an Attorney to Help Us With Debt Settlement? – Debbie I’m Very Close to Falling Behind on My Bills. Do I Have any Options Other Than Bankruptcy? – Paul Your Quickies For the Day
Reforms Recommended for Debt Collectors and Debt Collection Industry
The Federal Trade Commission issued a report today recommending that the debt collection legal system be reformed and modernized to reflect changes in consumer debt, the debt collection industry, and technology. The report describes the changes the FTC believes will provide better consumer protection without unduly burdening the debt collection industry. The Commission also issued its 31st annual report to Congress on the FDCPA, which summarizes its enforcement of the FDCPA during 2008. The FDCPA was enacted in 1977 to protect consumers from abusive, unfair, and deceptive practices by third-party debt collectors. Its primary government enforcer is the FTC, which in October 2007 hosted a two-day workshop for consumer groups, industry, academia, and government agencies to explore how collection industry changes have affected consumers and businesses. In the workshop report issued today, the Commission cites major problems in the flow of information within the collection system. The report recommends changes in the law to require that collectors have better information, making it more likely that their efforts will be for the right amount and be directed to the right consumer. It also recommends that they be required to provide consumers with better information explaining their rights under the FDCPA. To improve the flow of information, the report recommends these changes to the FDCPA: Requiring that the “validation notices” that collectors are required to send to consumers also disclose the name of the original creditor; break down the debt by principal, total interest, and total fees; and inform consumers of certain rights they already have under the FDCPA. Requiring collectors to conduct “reasonable” investigations responsive to the specific dispute the consumer raised. According to the workshop report, debt collection laws should be modernized to reflect changes in technology. Recognizing that the law generally should allow debt collectors broad use of communication technology to contact consumers, the report recommends that the law prevent consumers from incurring charges for these contacts or otherwise being subject to unfair, deceptive, or abusive acts and practices. The report recommendations include: Prohibiting collectors from contacting consumers via their mobile phones, including by text messaging, without prior express consent; and Requiring collectors who use new payment technologies to obtain express verifiable authorization from consumers before accessing their accounts. The workshop report recognizes that certain debt collection litigation and arbitration practices appear to raise substantial consumer protection issues. Because the workshop record lacks sufficient information for the FTC to determine the nature and extent of these issues, the report announces that the agency will convene regional roundtables this year with state court judges and officials, debt collectors, collection attorneys, consumer advocates, arbitration firms, and other interested stakeholders to learn more and develop possible solutions. The workshop report also recommends that Congress give the Commission authority to issue rules under the FDCPA. This would help ensure that legal requirements keep pace with changes in the marketplace. The report states that private actions, not FTC actions, were intended by Congress to be the primary means of promoting industry compliance with the FDCPA, and notes that the amounts of statutory damages that consumers can obtain in lawsuits under the FDCPA have not changed since 1977. To increase deterrence, the report recommends increasing the damage amounts to reflect inflation since then, and, in the future, to increase them periodically. Emphasizing the agency’s intention to continue its aggressive enforcement of the FDCPA, the report notes that the FTC has modified its law enforcement approach in order to obtain tough permanent injunctive and equitable relief, including substantial monetary judgments and, for some defendants, bans on collecting debts. The Commission also has taken more actions against the individuals, and not just the companies, responsible for illegal collection practices. Report: Collecting Consumer Debts: The Challenges of Change Source: Reforms Recommended for Debt Collectors and Debt Collection Industry Other Related Articles to Read Federal Trade Commission Should Allow For-Profit Credit Counseling and Debt Settlement Firms to Assist All Consumers Why The Debt Collector Works Hard to Manipulate You Recent Searches for Debt Advice Law Offices and Creditors Are Calling Me Non-Stop, Threatening to Sue and Treating Me Like a Criminal – Avria How Do Bill Collectors Get Cell Phone Numbers?
What You Need to Know About the Statue of Limitations and Time-Barred Debts
“Time-barred” debts are debts so old they are beyond the point at which a creditor or debt collector may sue you to collect. This is often referred to as debts that are beyond the statue of limitations. State law varies as to when a creditor or debt collector may no longer sue to collect: in most states, the statute of limitations period on debts is between 3 and 10 years; in some states, the period is longer. Check with your State Attorney General’s Office at www.naag.org to determine when a debt is considered time-barred in your state. Federal law imposes limitations on how debt collectors can collect debts, including time-barred debts. Under the Fair Debt Collection Practices Act (FDCPA), a “debt collector” generally is any person or organization that regularly collects debts owed to others. The term includes lawyers who collect debts for others on a regular basis, but it does not include creditors collecting their own debts. Most courts that have addressed the issue have ruled that the FDCPA does not prohibit debt collectors from trying to collect time-barred debts, as long as they do not sue or threaten to sue you for the debt. Below you will find information about time limits on collecting debts. The information is just a guide. For specific information or to check if the information is still accurate, please contact an attorney licensed in your state. Alabama Statutes of Limitations and Time-Barred Debts Contracts under seal: 10 years, (A.C. 6-2-33) Contracts not under seal; actions on account stated and for detention of personal property or conversion: 6 years (A.C. 6-2-34) Sale of goods under the UCC: 4 years (A.C. 7 -2- 725) Open accounts: 3 years (A.C. 6-2-37) Actions to recover charges by a common carrier and negligence actions; 2 years, (A.C. 6-2-38) Actions based on fraud: 2 years (A.C. 6-2-3) Alaska Statutes of Limitations and Time-Barred Debts Action on a sealed instrument: 10 years (A.S. 09.10.40) Action to recover real property: 10 years (A.S. 09.10.30) Action upon written contract: 3 years (A.S. 09.10.55) Note: prior to 8/7/97 -the statute of limitations for written contracts was six years. Action upon contract for sale: 4 years (A.S. 45.02.725) However, limitations by agreements may be reduced, but not less than one year (A.S. 45.02.725). Arizona Statutes of Limitation and Time-Barred Debts Written contracts: 6 years, runs from date creditor could have sued account. Oral debts, stated or opens accounts: 3 years. Actions for fraud or mistake: 3 years from the date of the discovery of the fraud or mistake. Actions involving fiduciary bonds, out of state instruments and foreign judgments: 4 years. NOTE: Arizona applies its own statute of limitations to foreign judgments rather than that of the state that originally rendered the judgment whether the judgment is being domesticated under the Uniform Enforcement of Foreign Judgments Act or pursuant to a separate action on the foreign judgment. An Arizona judgment must be renewed within five years of the date of the judgment. Arkansas Statutes of Limitations and Time-Barred Debts Written contracts: 5 years, NOTE: Partial payment or written acknowledgement of default stoppeds this statute of limitations. (A.C.A. 16-56-111) Contracts not in writing: 3 years, (A.C.A. 16- 56-105) Breach of any contract for the sale of goods covered by the UCC: 4 years, (A.C.A. 4-2- 725) Medical debts: 2 years from date services were performed or provided or from the date of the most recent partial payment for the services, whichever is later. (A.C.A. §16-56-106) Negligence actions: 3 years after the cause of action. (A.C.A. § 16-56-105) California Statutes of Limitation and Time-Barred Debts Written agreements: 4 years, calculated from the date of breach. Oral agreements: 2 years. The statute of limitation is stopped only if the debtor makes a payment on the account after the expiration of the applicable limitations period. Colorado Statutes of Limitation and Time-Barred Debts Domestic and foreign judgments: 6 years and renewable each six years. Note: If for child support, maintenance or arrears the judgment (lien) stays in effect for the life the judgment without the necessity of renewal every six years. All contract actions, including personal contracts and actions under the UCC: 3 years (C.R.S. 13-80-101), except as otherwise provided in 13-80-103.5; All claims under the Uniform Consumer Credit Code, except sections 5-5-201(5); All actions to recover, detain or convert goods or chattels, except as otherwise provided in section 13 -80-103.5. Liquidated debt and unliquidated determinable amount of money due; Enforcement of instrument securing the payment of or evidencing any debt; Action to recover the possession of secured personal property; Arrears of rent: 6 years, (C.R.S. 13-80-103.5) Connecticut Statutes of Limitation and Time-Barred Debts Written contact, or on a simple or implied contract: 6 years, (CGS 52-576) Oral contract, including any agreement wherein the party being charged has not signed a note or memorandum: 3 years, (CGS § 52- 581) Delaware Statutes of Limitation and Time-Barred Debts General contracts: 3 years; Sales under the UCC: 4 years Notes 6 years; District of Columbia Statutes of Limitation and Time-Barred Debts Contract, open account or credit card account: 3 years from the date of last payment or last charge. NOTE: An oral promise to pay re-starts the three years. Contracts under seal: 12 years. UCC Sales of Goods: 4 years. Florida Statutes of Limitation and Time-Barred Debts Contract or written instrument and for mortgage foreclosure : 5 years. F.S. 95.11. Libel, slander, or unpaid wages: 2 years. Judgments: 20 years total and to be a lien on any real property, it has to be re-recorded for a second time at 10 years. The limitations period begins from the date the last element of the cause of action occurred, (95.051). NOTE: The limitation period is tolled (stopped) for any period during which the debtor is absent from the state and each time a voluntary payment is made on a debt arising from a written instrument. Almost all other actions fall under the 4-year catch-all limitations period, (F.S. 95.11(3)(p)). Georgia Statutes of Limitation and Time-Barred Debts Breach of any contract for sale: 4 years, (OCGA 11-2- 725) NOTE: Parties may reduce limitation to not less than one year, but not extend it. A cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach. Contract, including breach of warranty or indemnity: 4 years, (OCGA 11- 22A-506) NOTE: The parties may reduce the period to one year. Written contract: 6 years from when it becomes due and payable and the six (6) year period runs from the date of last payment. (OCGA 9-3-24) Open account; implied promise or undertaking: 4 years, (OCGA 9-3-25). NOTE: Payment, unaccompanied by a writing acknowledging the debt, does not stopped the statute. Therefore, the statutory period runs from the date of default, not the date of last payment. Bonds or other instruments under seal, 20 years, (OCGA 9-3-23) NOTE: No instrument is considered under seal unless it’s stated in the body of the instrument. Hawaii Statutes of Limitation and Time-Barred Debts Breach of contract for sale under the UCC: 4 years. Contract, obligation or liability: 6 years. Judgments: 10 years, renewable if an extension is sought during the 10 years. NOTE: The time limitation stopped during the time of a person’s absence from the state or during the time that an action is stayed by injunction of any court. Idaho Statutes of Limitation and Time-Barred Debts Breach of contract for sale under the UCC: 4 years. Written contract or liability: 5 years. Contract or liability that is not written: 4 years. NOTE: The time period begins as of the date of the last item, typically a payment or a charge under a credit card agreement. A written acknowledgement or new promise signed by the debtor is sufficient evidence to cause the relevant statute of limitations to begin running anew. Any payment of principal or interest is equivalent to a new promise in writing to pay the residue of the debt. Judgments: 5 years but may be renewed for another five-year period. NOTE: An independent action on a judgment of any court of the United States must be brought within 6 years. The time limitation for the commencement of any action is tolled during the time of a person’s absence from the state or during the time that an action is stayed by injunction or by statutory prohibition action. Illinois Statutes of Limitation and Time-Barred Debts Breach of contract for sale under the UCC: 4 years. Open account or unwritten contract: 5 years. NOTE: Except, as provided in 810 ILCS 5/2- 725 (UCC), actions based on a written contract must be filed within 10 years, but if a payment or new written promise to pay is in made during the 10 year period, then the action may be commenced within 10 years after the date of the payment or promise to pay. Domestic judgments: 20 years, but can be renewed during that 20-year period. Foreign judgments are the same time as allowed by the laws of the foreign jurisdiction. Tolling: A person’s absence from the state or during the time that an action is stayed by injunction, court order or by statutory prohibition tolls the time limit. Non Sufficient Funds (NSF or Payment of Negotiable Instruments) checks: 3 years of the dishonor of the draft or 10 years after the date of the draft, whichever expired first: 810 ILCS 5/3-118 Indiana Statutes of Limitation and Time-Barred Debts Breach of contract for sale under UCC: 4 years. Unwritten accounts or contracts and promissory notes or written contracts for payment of money executed after August 31, 1982: 6 years. Written contracts unrelated to the payment of money: 10 years. Written acknowledgement or new promise signed by the debtor, or any voluntary payment on a debt, is sufficient evidence to cause the relevant statute of limitations to begin running anew. Judgments: 10 years unless renewed. Iowa Statutes of Limitation and Time-Barred Debts Open account: 5 years from last charge, payment, or admission of debt in writing. Unwritten contracts: 5 years from breach. Written contracts: 10 years from breach. Demand note: 10 years from date of note. Judgments: 20 years. However, an action brought on a judgment after nine years but not more than ten years can be brought to renew the judgment. NOTE: Deficiency judgments on most residential foreclosures , and judgments on mortgage notes become essentially worthless two years from date of judgment. Kansas Statutes of Limitation and Time-Barred Debts Written agreement, contract or promise: 5 years. Expressed or implied but not written contracts, obligations or liabilities: 3 years. Relief on the grounds of fraud: 2 years. Kentucky Statutes of Limitation and Time-Barred Debts Recovery of real property: 15 years (KRS 413.0 10). Judgment, contract or bond: 15 years (KRS 413.110). Breach of sales contract: 4 years (KRS 355.2- 725). Contract not in writing: 5 years (KRS413.120). NOTE: Action for liability created by statute when no there is no time fixed by statute: 5 years (KRS413.120). Action on check, draft or bill of exchange: 5 years (KRS 413.120). Action for fraud or mistake: 5 years (KRS 413.120). Actions not provided for by statute: 10 years (KRS 413.160). Louisiana Statutes of Limitation and Time-Barred Debts Contracts: 10 years. Open accounts: 3 years. Lawsuits, which are filed but not pursued, become null three years after the last action taken. Judgment: 10 years, and if not renewed within the ten years become a nullity. Maine Statutes of Limitation and Time-Barred Debts Generally all civil actions must be commenced within 6 years after the cause of action accrues. (14 M.R.S.A. 752) The primary exception is for liabilities under seal, promissory notes signed in the presence of an attesting witness, or on the bills, notes or other evidences of debt issued by a bank, in which case, the limitation is twenty (20) years after the cause of action accrues. (14 M.R.S.A. 751) Judgments are presumed paid after twenty (20) years. (14 M.R.S.A. 864) Maryland Statutes of Limitation and Time-Barred Debts Civil action: 3 years from the date it accrues, unless: Breach of contract under any sale of goods and services under the UCC: 4 years after the cause of action, even if the aggrieved party is unaware of the breach. Promissory notes or instruments under seal, bonds, judgments, recognizance, contracts under seal, or other specialties: 12 years. Financing statement: 12 years, unless a continuation statement is filed by a secured party six (6) months prior to end of twelve (12) year period. (Maryland, Commercial Law article Sec. 2-725; Courts & Judicial Proceedings Article Sec. 5-101-02, 9-403). NOTE: The 3 year statute of limitations begins again if creditors can document that a debtor has reaffirmed a debt by a good faith basis by a written agreement, orally, or by payment. Massachusetts Statutes of Limitation and Time-Barred Debts Debt instruments issued by banks, Contract under seal: 20 years. Judgments: 20 Years. Oral or Written Contracts: 6 Years. Consumer Protection Actions: 4 Years. Recovery of Property: 3 Years. Probate Claims: 1 Year from date of death. Claims on mortgage notes following foreclosure or on claims junior to a foreclosed mortgage : 2 Years. Michigan Statutes of Limitation and Time-Barred Debts Breach of Contract: 6 years, (MCL 600.5807(8). Breach of Contract for Sale of goods under the UCC: 4 years: including deficiency actions following repossession and sale of goods subject to a security interest, (MCL 440.2725(1). Judgments: 10 years, but are renewable by action for another 10 years, MCL.600.5809(3). NOTE: Another state’s limitation period may apply check statutes carefully. Minnesota Statutes of Limitation and Time-Barred Debts Breach of contract for sale under the UCC: 4 years, (MSA 336.2.). NOTE: Except where the Uniform Commercial Code otherwise prescribes, actions based on a contract or other obligation, express or implied, must be brought within 6 years after the cause of action occurred (Chapter 541). Tolling: New written acknowledgement or payment tolls the statute of limitations for the debt. Judgments: 10 years. Mississippi Statutes of Limitation and Time-Barred Debts Contracts and Promissory Notes: 3 years (MCA 75-3-118, 75-2-725, and 15-1-49). Open Accounts: 3 years from the date at which time the items on the account became due and payable,(MCA 15-1-29 & MCA 15-1-31). Judgment liens on real estate: 7 years, but can be renewed by filing suit to renew judgment prior to expiration of 7th year, (MCA 15-1-47). Deficiency claims: 1 year from sale of collateral, (MCA 15-1-23) Enforcement of construction liens: 1 year from date lien is filed, (MCA 85- 7-141) Missouri Statutes of Limitation and Time-Barred Debts Written agreement that contemplates the payment of money or property: 10 Years, (Mo.Rev. Stat. §5l6.ll 0). NOTE: Under certain circumstances, the contractual statute of limitations may be reduced to five years. Open accounts: 5 years, (Mo. Rev. Stat. §5l6.l20). Sale of goods under the UCC: 4 years. NOTE: The statute begins to run from the date when the breach occurred for contracts and from the time of the last item in the account on the debtor’s side for actions on accounts. Montana Statutes of Limitations and Time-Barred Debts Written contract, obligation or liability: 8 years. Contract, account or promise that is not based on a written instrument: 5 years. Montana obligation on to provide a certain level of support for a spouse, child or indigent parent: 2 years. Obligation or liability, other than a contract, account or promise not based on a written instrument: 3 years. Relief on the grounds of fraud or mistake: 2 years. NOTE: A written acknowledgement signed by the debtor or any payment on a debt is sufficient evidence to cause the relevant statute of limitations to begin running anew. Judgment or decree of any U.S. court: 10 years. NOTE: Judgments rendered in a court not of record: 6 years. Nebraska Statutes of Limitation and Time-Barred Debts Real estate or foreclosure mortgage actions; product liability; 10 years. Foreign judgments, contract or promise in writing, express or implied: 5 Years. Unwritten contract, express or implied; Recovery of personal property; Relief on grounds of fraud; breach of contract for sale of goods; and open account: 4 years. Liability created by federal statute with no other limitation: 3 years. Malpractice: 2 Years. NOTE: SoL can be interrupted by partial payment or written acknowledgement of debt. The statute starts to run anew from the date of the partial payment or written acknowledgement, (Neb. Rev. Stat. §25-216) NOTE: Actions on breach of contract for sale may be reduced to not less than one year. Nevada Statutes of Limitation and Time-Barred Debts Written contract: 6 years. Verbal contract: 4 years. Property damage: 3 years. Personal injury: 2 years. New Hampshire Statutes of Limitation and Time-Barred Debts Contracts and open accounts: 3 years, (RSA 508:4). Contracts for the sale of goods under UCC: 4 years, (RSA 382-A: 2- 725). Notes, defined as negotiable instruments: 6 years (RSA 382-A: 3-118) Judgments, recognizance, and contracts under seal: 20 years (RSA 508:5) Notes secured by a mortgage : 20 years and applies even if the mortgage has been foreclosed, (RSA 508:6). Tolling: Payment on an account tolls the statute. NOTE: Installment loans allow for separate measurement of the statutory period as each separate payment comes due, unless the loan has been accelerated. New Jersey Statutes of Limitation and Time-Barred Debts Conversion of an instrument for money: 3 years, (N.J.S.A.12A: 3-118(g)). Sale of goods under the UCC: 4-years, (N.J.S.A. 12A; 2-725). Real or personal property damage, recovery and contracts not under seal: 6 years (N.J.S.A. 2A: 14-1). Demand Notes when no demand is made: 10 years. If demand made: 6 years from date of demand, (12A: 3-118(b)). Obligations under seal for the payment of money only, except bank, merchant, finance company or other financial institution: 16 years, (N.J.S.A. 2A: 14-4) actions for unpaid rent if lease agreement is under seal, (N.J.S.A. 2A: 14-4). Real estate: 20 years, (N.J.S.A. 2A: 14-7); Judgments: 20 years, renewable, (2A: 14-5); Foreign judgments: 20 years (unless period in originating jurisdiction is less), (2A: 14- 5). Unaccepted drafts: 3 years from date of dishonor or 10 years from date of draft, whichever expires first, (12A: 3- 118(c)). New Mexico Statutes of Limitation and Time-Barred Debts Contract in writing: 6 years (except any contract for the sale of personal property is 4 years or the last payment, whichever is later). All other creditor-debtor transactions are 4 years after accrual of the right to sue. NOTE 1: An action accrues on the first date on which the creditor can sue for a breach or for relief, generally from the last purchase or the last payment. NOTE 2: If the limitations period has expired, an acknowledgment or payment starts the period running again. Judgments: 14 years. New York Statutes of Limitation and Time-Barred Debts N. Y. Civil Practice Law and Rules: Chapter Eight of the Consolidated Laws, Article 2 – Limitations of Time: 211. Actions to be commenced within twenty years. (a) On a bond. (b) On a money judgment. (c) By state for real property. (d) By grantee of state for real property. (e) For support, alimony or maintenance. 212. Actions to be commenced within ten years. (a) Possession necessary to recover real property. (b) Annulment of letters patent. (c) To redeem from a mortgage . 213. Actions to be commenced within six years: where not otherwise provided for; on contract; on sealed instrument; on bond or note, and mortgage upon real property; by state based on misappropriation of public property; based on mistake; by corporation against director, officer or stockholder; based on fraud. 213-a. Actions to be commenced within four years; residential rent overcharge. 213-b. Action by a victim of a criminal offense. 214. Actions to be commenced within three years: for non- payment of money collected on execution; for penalty created by statute; to recover chattel; for injury to property; for personal injury; for malpractice other than medical or dental malpractice; to annul a marriage on the ground of fraud. UCC, Section 2–725. Statute of Limitations in Contracts for Sale. (1) An action for breach of any contract for sale must be commenced within four years after the cause of action has accrued. By the original agreement the parties may reduce the period of limitation to not less than one year but may not extend it. (2) A cause of action accrues when the breach occurs, regardless of the aggrieved party`s lack of knowledge of the breach. Contract for lease of goods: 4 years (N. Y. U.C.C. 2-A-506(1). S 203. Method of computing periods of limitation generally. (a) Accrual of cause of action and interposition of claim. The time within which an action must be commenced, except as otherwise expressly prescribed, shall be computed from the time the cause of action accrued to the time the claim is interposed. North Carolina Statute of Limitation and Time-Barred Debts Express or implied contract, not under seal: 3 years. Contract and sale of personal property under seal: 10 years. Open account: 3 years, NOTE: Each payment renews the SoL on all items purchased within the 3 years prior that payment. If no payment is made, the SoL runs from date of each individual charge. Contracts: From date of breach or default, unless waived or performance under the contract is continued. Judgments: 10 years Partial payment BEFORE the statute of limitations expires renews the statue of limitations from date of payment. Payment AFTER statue of limitations expires renews statue of limitations ONLY if, at time of payment, circumstances infer the debtor recognized obligation to pay. Partial payment on open account restarts SoL on purchases made within 3 years of payment date, if acknowledgment can be inferred, starts the statute anew as to the full obligation acknowledged, even if all of the charges were not made within the last three years. Partial payment by one debtor does not renew the statute of limitations as against any a co-debtor unless that co-debtor agreed to, authorized or ratified the partial payment. Partial payments DO NOT affect the ten-year limitation on enforcing or renewing judgments. Bankruptcy , Death or Disability: Filing of a bankruptcy tolls the statute of limitations for the enforcement of contracts and judgments. The death, minority, disability or incompetence of a debtor also tolls the limitation period until such time as a personal representative of the estate or a guardian of the incompetent or minor is appointed. North Dakota Statutes of Limitation and Time-Barred Debts Breach of contract for sale under the UCC: 4 years. All other actions based on a contract, obligation or liability, express or implied: 6 years. NOTE: A new written acknowledgement or promise or voluntary payment on a debt revives the statute of limitations for the debt. Judgments: 10 years. Ohio Statutes of Limitation and Time-Barred Debts Written or oral account: 6 years, (O.R.C. §2305.07). Written contract: 15 years, (O.R.C. §2305.06). Oral contract: 6 years (O.R.C. §2305.07). Note payable at a definite time: 6 years, (O.R.C. § 1303 .16(A)); (2)). Demand note: 6 years after the date on which demand is made or 10 years if no demand is made and neither principal nor interest has been paid over that time (O.R.C. §1303.16(B)). Dishonored check or draft: 3 years after dishonor, (O.R.C. §1303.16 (C)). Oklahoma Statutes of Limitation and Time-Barred Debts Written Contract: 5 Years, (O.S. § 95(1)). Oral Contract: 3 Years, (O.S. § 95(2)) Attachments: 5 Years, (O.S. § 95(5)) Domestic Judgment: 5 Years, (O.S. § 95(5)) Foreign Judgment: 3 Years, (O.S. § 95(2) Oregon Statutes of Limitation and Time-Barred Debts Unlawful trade practices: 1 year, (ORS 646.638(5). NOTE: There is no statute of limitations for a cause of action brought as a counterclaim to an action by the seller. (ORS 646.638(6)). Contract or liability: 6 years, (ORS 12.080) Judgment: 10 years, (ORS 12.070). Pennsylvania Statute of Limitations and Time-Barred Debts Contracts: 4 years, (used to be six). Contracts under seal: 20 years. Sale of goods under UCC: 4 years. Negotiable instruments: 6 years (13 PA C.S.A. .§3118). Rhode Island Statutes of Limitation and Time-Barred Debts Contracts and open accounts: 10 years (9-1-13(a)). Breach of a sales agreement under the UCC: 4 years, (6A-2- 725(1 )). Contracts or liabilities under seal and judgments: 20 years, (9-1-17). Hospital liens: 1 year from payment, (9-3-6). Against insurer to enforce repairer’s lien: 1 year from payment to insured, (9-3-11). Support obligations of common law father: 6 years, (15-8-4). Mechanic’s lien: notice given is one year and one hundred twenty days, (34-28-10. 10). South Carolina Statutes of Limitation and Time-Barred Debts Breach of Contract: 3 years, (SCCLA 15-3-530). NOTE: A partial payment or acknowledgment in writing tolls the SoL, (SCCLA 15-3-30). Foreign or Domestic Judgments: 10 years, (SCCLA 15-3-600). South Dakota Statutes of Limitation and Time-Barred Debts Contract: 6 years, (SDCL 15-2-13). Domestic Judgments: 20 Years, (SDCL 15-2-6). Foreign Judgments: 10 Years, (SDCL 15-2-8). Claims of Fraud: 6 Years, (SDCL 15-2-13). Sealed Instrument: (except real estate): 20 Years, (SDCL 15-2-6). Actions not otherwise provided for: 10 Years, (SDCL 15-2-8). Open Accounts: 6 Years, (SDCL 15-2-13). Sale of Goods: 4 Years, (SDCL57A-2-725). Tennessee Statute of Limitation and Time-Barred Debts Breach of contract: 6 years, (T. C.A. 28-3-109). Open accounts: 6 Years, (T. C.A. 28-3-109). Domestic or foreign judgments: 10 years, (T .C.A. 28-3-110). Texas Statutes of Limitation and Time-Barred Debts The Texas Civil Practice & Remedies Code provides a 4-year limitations period for types of debt. The SoL begins after the day the cause of action accrues, (Section 16.004 (a) (3)). Utah Statutes of Limitation and Time-Barred Debts Any signed, written contract, obligation or liability: 6 years. Unwritten contract, obligation or liability: 4 years. Open account for goods, wares, merchandise, and services rendered or for the price of any article charged on a store account: 4 years. NOTE: A written acknowledgement signed by the debtor revives the SoL. Judgment or decree of any court or State of the United States: 8 years. Virginia Statutes of Limitation and Time-Barred Debts Open account: 3 years from the last payment or last charge for goods or services rendered on the account. Written contracts (non-UCC): 5 years. Sale of goods under the UCC: 4 years. Virginia Judgments: 10 years, and renewable (extended) to 20 years. Foreign judgments: 10 years. Vermont Statutes of Limitation and Time-Barred Debts Contracts and goods on account: 6 years. Witnessed promissory notes: 14 years Washington Statutes of Limitation and Time-Barred Debts Written contracts and accounts receivable: 6 years, (RCW 4.16.040). Oral contract: 3 years (RCW 4.16.080). Recovery of property and judgments: 10 years, (RCW 4.16.020). West Virginia Statutes of Limitation and Time-Barred Debts Unwritten and implied contracts: 5 years, (W. Va. Code 55-2-6 (1923)). NOTE: If a debtor makes an acknowledgment by a new promise, or voluntarily makes a partial payment on a debt, under circumstances that warrant a clear inference that the debtor recognizes the whole debt, the statute of limitations is revived and begins to run from the date of the new promise, (W. Va. Code §55 -2-8 ) Breach of a sale of goods, lease of goods, negotiable instruments and secured transactions under the UCC, is found Article 46 of the West Virginia Code. Wisconsin Statutes of Limitation and Time-Barred Debts Contracts, professional services, or an open account based on a contract: 6 years. NOTE: Payments made toward the obligation toll the statute and the time period will then run from the date of last payment or last charge by the debtor, whichever occurs later. Wyoming Statutes of Limitation and Time-Barred Debts Any contract, agreement or promise in writing: 10 years, (WS 1-3-105(a)(i)). Unwritten contract, express or implied: 8 years, (WS 1-3-105(a)(ii)). Recovery of personal property: 4 years, (WS 1-3-1 05 (a) (iv)). Dishonor of draft (check): 3 years, (WS 34.1-3-118( c)). Judgment: 21 years. NOTE 1: Judgments cannot be revived after twenty-one years unless the party entitled to bring the action was a minor or subject to any other legal disability at the time the judgment became dormant, in this case action may be brought within 15 years after disability ceases, (WS 1-16-503). NOTE 2: If no execution is issued within 5 years from date of judgment or last execution is issued, the judgment becomes dormant and ceases to operate as a lien on the estate of the debtor, (WS 1-17-307). NOTE 3: A dormant judgment may be revived in the same manner as prescribed for reviving actions before judgment or by action, (WS 1-16-502). Source: What You Need to Know About the Statue of Limitations and Time-Barred Debts Other Related Articles to Read I Found I Owe an Old Medical Bill. What Can Credit Collectors do to Me? – Mark I’m a Twenty-Something Guy Who Has Made Some Really Poor Financial Choices. – Mike Denise Can’t Find CACH, LLC And It is Holding Up Refinancing Her Home The American Consumers Nuclear Winter Join the forum discussion on this post – (1) Posts
Is CCCS Right for Us or is There a Better Alternative? – Shawn
Shawn wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, I have about $100k of unsecured consumer credit card debt spread out amongst several (about 15) cards. My wife and I are both in very stable jobs, and combined we make about $110k a year (about $6000-$6500/mo take-home after tax, health insurance, etc). We “own” our house, in other words, we pay $2k a month mortgage on it. We had initially planned to consolidate our revolving debt into a home equity line, and right about that time banks tightened up big time. We were able to manage our credit card payments, and are still current, but creditors are jacking up the interest rates…and thus our minimum payment. Our minimum monthly credit card payment is now $2,000-$2,200/mo, which is beginning to push us to the brink of not being able to make our payments. I never imagined we would be making 6 figures and living paycheck-to-paycheck. We’re strongly considering a debt management plan with CCCS or another company called ClearPoint. I’ve heard mixed reviews on DMPs, about 80% very positive but 20% very negative. Basically we’re just looking for more reasonable interest rates and consolidation…so we don’t miss that due date by a day thus incurring late fees and higher interest rates which equal higher minimum payments. We don’t want to declare bankruptcy because we love our house and don’t want to lose it in a settlement. Since housing values have dropped, we have very little equity in the house…but it has a lot of sentimental value to us. Is a Debt Management Plan such as CCCS right for us? Or is there a better alternative (aside from bankruptcy)? Shawn” Dear Shawn, While a credit counseling program might be able to get you some lower interest rates, your monthly minimum payment will remain about the same as it is right now. I think the primary reason you are worried about bankruptcy is because you don’t want to lose the house. But the truth is that you’d be able to keep the house. I am not convinced that a credit counseling program with CCCS or anyone else is a smart move for you right now. And before you decide to commit yourself to a credit counseling or debt management program I think you owe it to yourself to go and meet with a local bankruptcy attorney and get the facts. You can click here to get a free bankruptcy consultation . Rather than make a very important life decision about which path to follow to get out of this mess, based on assumptions, I think you need to gather all the facts by meeting with the bankruptcy attorney . If you are living month-to-month and enroll with CCCS or a credit counseling program and a year from now you find it impossible to keep up with the payments, then all you’ve done is tossed a year worth of payments down the drain without accomplishing anything. Big hug. Steve Source: Is CCCS Right for Us or is There a Better Alternative? – Shawn Other Related Articles to Read How Can I Figure Out How Much I Can Afford to Pay My Credit Cards Each Month? – George Eva Has Heard Negative Things About CCCS Diana Is Struggling to Make Credit Card Payments And Afraid Jeannie Already Went Bankrupt And Is Now With CCCS But Can’t Afford to Feed Her Daughter A Secret You Are Not Supposed to Know – Citibank CCCS Credit Counseling Terms
My Husband Died and I Was Laid Off. – Linda
Linda wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, I am 51 years old. My husband died 3 years ago. I was layed off from my job in Oct. 2008. I have over 40,000.00 in credit card debt and 50,000.00 on a home equity loan. The interest rates are killing me. I may have to file bancruptcy. How can I lower my interest rates so I can avoid bancruptcy and continue paying off my debts? Linda” Dear Linda, The best chance of getting the interest rates reduced would be to enroll in a debt management program , but only if you can afford the amount of your monthly payment. I’m worried that if you are still unemployed that enrolling in any repayment option may be draining you of money you can’t replace. In that case bankruptcy might be a much better option for you. I would suggest that you go an meet with a local bankruptcy attorney and have a free bankruptcy consultation to discuss if bankruptcy is right for you, before you consider a debt management program or credit counseling solution. Big hug. Steve Source: My Husband Died and I Was Laid Off. – Linda Other Related Articles to Read My Husband Passed Away And Now the Credit Card Company Wants the Full Amount. – Merle Bank of America Troubles With Republic Windows & Doors in Chicago Highlight ‘Banks Are Soulless’ I’m Afraid I’m Going To Get Laid Off. How Will I Pay My Bills? What Will I Do? Can I Go Bankrupt Even Though I Used the Credit Cards to Get By? – Lee We Are Sinking Fast And Using Credit Cards For Daily Purchases. – Valerie
My Debt to Income Ratio is Enormous. – Laura
Laura wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form . I’m happy to help you totally for free. Income from the GetOutOfDebt.org site advertising is used to help alleviate poverty . If you would like to help me to help others, there are easy and free things you can do, click here to learn how you can help . “Dear Steve, My debt to income ratio is enormous. I pay bills on time, but do not have money left over for groceries much less anything else. I need to refinance my home because my ARM is up soon. Would it be smarter to refinance now before I mess up my credit worse with a dept mgmt. program? I don’t know if my credit is ruined worse by a debt settlement or by my debt to income ratio. Please help. Laura” Dear Laura, No matter what the cause of your decreased credit score , the end result is the same thing, poor credit. With a ARM needing to be refinanced in the near future you better make a serious effort to get your credit in shape. First step will be to get a copy of your consolidated credit report and look to see what is really being reported about you. If you find negative and inaccurate information being reported, follow the instructions included in the consolidated credit report to get it removed. With the stricter lending standards for mortgage today you might find it difficult to refinance with borderline credit. Once you tune up your credit report then I would contact a mortgage broker and talk about your refinancing options. I don’t see any reason why you should be considering a debt management program at this time. Big hug. Steve Source: My Debt to Income Ratio is Enormous. – Laura Other Related Articles to Read Carolyn Writes In And Wants a New Mortgage In Bankruptcy Terri Wants to Know “Is There a Way to Get Out of Debt Without Ruining Our Credit?” I Have a Bad Credit Report. What Can I Do? – Connie I’m Living Off My Student Loans and Need to Get Out of Credit Card Debt. – Nancy I Have Poor Credit From a Divorce. How Can I Improve It? – Natalie
Identity Theft and Credit Card Fraud for New Boobs
A 44-year-old woman, Julianne Johnson, was arrested on theft and fraud charges after authorities say she stole credit card information to get breast implants and a hotel room for Valentine’s Day. Authorities say Johnson also used the identity of a man to open new credit cards and spent more than $3,000 on the accounts. She is also accused of charging more than $5,600 on another man’s credit card at Florida Coastal Plastic Surgery, the Manatee Surgical Center and the PGA National Resort and Spa in Palm Beach Gardens. Johnson is being held in Manatee County Jail in Florida on $105,000 bond. But she looks good. Source: Identity Theft and Credit Card Fraud for New Boobs Other Related Articles to Read Debit Card Concerns. Profits Hide Truth About Your Risks.
Continued Bankruptcies, Late Payments, Mortgage Delinquencies Kick … – Stockhouse
Continued Bankruptcies, Late Payments, Mortgage Delinquencies Kick … Stockhouse, Canada The deteriorating economy is evident in recent consumer credit woes as bankruptcies, past-due credit card payments and delinquent mortgages are beginning to pile up according to a new report by Equifax Inc. (NYSE: EFX). The company issued its monthly …