Can anyone tell me if this is still true? If you owed someone money and they never collect on the debt for the 1st seven years then the debt is null and void (like you had filed bankruptcy against it,) and they can no longer collect money from you?
By Teresa W.
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Here is a link to the state by state number of years that is currently the law. Hope that helps.
www.bankrate.com/
I think its 15 years, but not really sure. Should be very easy to find in a google search.
After my Grandfather sold his farmland in the about 1968, he paid off a debt he had owed to the storekeeper of his town since the 1930's. I doubt if that debt was more than $100, and was likely less. He' d owed that money for 30 years, and the storekeeper had long since moved away and retired.
There is a law like this, I'm not sure how many years have to pass, but you have some things wrong. The debt has to be from a bank, credit card, store payment, etc - not a personal money loan from another individual. if the loan was spoken about and you promised payment, you will still be responsible for payment.
For example, if the day before the time limit was to expire, and the credit card company called you, and you said that you'd mail in a payment or even try to make a payment sometime, then the time limit restarts from the time of that conversation - it is a revolving time-limit. And the companies do record the conversation, so you can't get away with lying.
If this is a personal loan from a friend or relative, these laws don't necessarily apply, but that person has options too: they can take you to small claim court and attach you wages, disability check, or any future income you may get - even years later, they can sue you if the amount if high enough and take your property, they can report the loan to the IRS as income given to you which you failed to claim and pay taxes on - do you really want to owe the IRS back money with interest? The IRS can freeze all your accounts and lock you out of your own home. Or, you can be a responsible person and pay the money you owe.
Well, - my two cents worth - it sounds to me like your grandfather was a very honorable man and needs to held as a fine example of the type of character we should all strive to be. My kudos to him and anyone like him!
Sorry about the last post but I was reviewing another question and answered this one incorrectly.
The chart given is the correct answer.
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