SOL on Bad credit?
April 23rd, 2010 | 
Author: lupin S asked:
Her bad credit begun in 2001 and 2003 when she couldn’t afford to pay her credit cards anymore. I believe she acumulated $10,000.00 in her credit. What will happen to her? Is credit card loan same as home laon and car loan? Has the SOL taken affect by now on her accounts? What is SOL? She is worried and have no money at all to repay her debt. Her family is the only one taking care of her now. Will she be able to to have credit again? She is worried about going to jail. Can you go to jail for having debt in credit card? Thank you so much for the help
bad credit car loan
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bad credit car loan
sounds like shes SOL and JWF
bad credit car loan
The Statute of Limitations is the time that a creditor has to file a lawsuit against you to collect it. Each state has a different time frame, so look at the link below. It averages around 6 years, but could be as high as 10.
Credit card debt is considered an open or revolving debt, and it different then mortgages and car loans, which are written contracts. Those types of debts generally run a longer SOL.
Once the SOL has run out, if you are sued for the debt you simply have to tell the judge that the debt is too old and the SOL has run out. This is called an affirmative defense, and you MUST go to court to offer it. If you fail to show, the creditor will receive an automatic default, and you will be forced to pay the debt regardless of the SOL.
You will NEVER get put in jail for debts unless they can prove fraud. That means you took out the loan with the intent of not paying it back. Not likely here.
Contact me if you need more advice.