Is there a statute of limitations on debt settlement?

Yes, there is a statute of limitations on debt settlement in Pennsylvania. This law, known as the Pennsylvania Fair Credit Extension Uniformity Act, sets a time limit for how long a creditor can legally pursue a debt. This law states that any debt that is six years or older cannot be legally collected, and the creditor must stop collecting it. The statute of limitations can be restarted if any payment is made by the debtor on the debt, or if a payment agreement with the creditor is made. As long as the debt is still legally within the statute of limitations, a creditor can still try to collect the debt. If a creditor continues to attempt to collect on a debt that has passed the statute of limitations, this is considered a violation of the Pennsylvania Fair Credit Extension Uniformity Act. In this case, a debtor has the right to sue the creditor for damages. To do this, however, the debtor must prove that the statute of limitations has expired and that the creditor illegally pursued collection. The statute of limitations for debt settlement in Pennsylvania is important for both debtors and creditors. Debtors are protected from being harassed by creditors for debts they cannot legally collect, and creditors are sure to be aware of time limits in order to keep in line with the law.

Related FAQs

How do I protect my credit score during a debt settlement?
What is a “hardship program” and how can it help with debt settlement?
How can I ensure I don’t fall behind on payments during the settlement process?
Can I negotiate a debt settlement over the phone?
Is debt settlement a better solution than bankruptcy?
How can I learn more about debt settlement laws in my state?
What is an unsecured debt and how does it impact debt settlement?
What will happen to my credit score after a successful debt settlement?
Is there a minimum debt amount to qualify for debt settlement?
What fees will I pay if I use a debt settlement company?

Is there a statute of limitations on debt settlement?

Related FAQs

Related Blog Posts