Bad credit repair requires you know and understand your state’s statute of limitations BEFORE disputing, paying off and/or ignoring any bad credit account!
Each state determines its own statute of limitations for various civil disputes (see below Florida):
Your state's Statute of Limitations determines "limits"
Steps To Avoid Getting Sued:
- Carefully review your credit reports. Do you have bad credit on your reports?
- Determine if the bad credit is yours. Is the bad credit yours?
- If so, is the bad credit reported 100% accurately? For instance, is the outstanding balance reporting accurately among the Big 3 credit bureaus?
- When is the Date of First Delinquency? That is, in what month/year did you stop paying? For instance, you missed your May 2005 payment and never paid again. Your DoFD is May ’05. Now apply your state’s SOL on collecting to the DoFD to determine if a debt owner can take legal action against you.
- Is the debt owner demanding payment/payoff?
- If so, negotiate settlement to avoid judgment.
PLEASE leave a comment below. Got a question…or comment…or experience to share with a debt collector scaring you into paying up, though you did nothing to validate the debt or determine SOL or demand favorable reporting? If you paid off an alleged debt without negotiating favorable reporting, you got a little shocker, didn’t you? Tell us about it below.
Bad credit repair begins with carefully reviewing all 3 credit reports from Experian, Equifax & Transunion. If you don’t know how read & understand your credit reports, see my step-by-step videos at repair credit fast.
Welcome back! Got a question for me...or an experience to share? Please go to the bottom of this article to ask a question or share an experience. :) Thank you!
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