How to Calculate your SOL

SOLs vary depending on your state and the type of debt involved. Debt types can include open-ended accounts, written contracts, promissory notes, and oral agreements. Notably, the SOL clock begins with the default date, not the charge-off or reporting date. For open-ended accounts like credit card debt, some state SOLs may be as short as three years, making the clock-start date critical in determining your rights.

Which State Law to Use

If your current state of residence differs from where you incurred the debt, it’s crucial to check both state SOLs. Debt collectors may choose to apply the longer of the two SOLs, potentially impacting the timeframe within which they can pursue legal action against you. Being aware of both SOLs can protect your rights and ensure you are well-informed in dealing with debt collections.

Poking the Bear

Disputes can sometimes prompt collectors to escalate their collection efforts or even initiate a lawsuit. The age and amount of the debt often influence their actions. Regardless of your perspective on the legitimacy of the collection, it’s essential to be well-informed about your rights before taking any action. Being clear on your rights can help you navigate the situation with confidence and make informed decisions regarding your debt.

A Caveat

It’s not uncommon for some collectors to attempt to sue beyond the statute of limitations (SOL). While your SOL defense would likely be successful, dealing with the stress of a lawsuit can be burdensome. This emphasizes the importance of approaching collections with caution. Paying attention to the details from the beginning can help turn a potential threat into an advantage, safeguarding you from unnecessary stress and complications.

Using SOL as Leverage

Debts beyond the statute of limitations (SOL) are often highly negotiable. Asserting your awareness of the expired SOL can be necessary to make collectors realize you are informed. However, having an expired SOL on your side should provide you with a substantial advantage during negotiation, potentially leading to more favorable terms and resolutions.