The statute of limitations (SOL) in New York is 6 years, for all kinds of accounts. SOL is the time frame within which a creditor can sue you for not paying the debt. SOL starts from the date of last activity on the account. Will you be able to tell which year this debt was incurred?
However, expiration of SOL doesn't mean that the creditor may stop from trying to collect the debt from you. If he realizes that he won't be able to collect the debt, he will write it off as his loss and charge-off the account to a collection agency. This charge off can adversely affect your credit score.
So, if you really owe the debt, it's better to pay that off. If you can pay the full amount, you can contact the creditor and request the creditor to agree to a settlement. A settlement lowers the outstanding debt amount by 40-60%.
statute of limitations
Hi coolmom,
Welcome to this community :)
The statute of limitations (SOL) in New York is 6 years, for all kinds of accounts. SOL is the time frame within which a creditor can sue you for not paying the debt. SOL starts from the date of last activity on the account. Will you be able to tell which year this debt was incurred?
However, expiration of SOL doesn't mean that the creditor may stop from trying to collect the debt from you. If he realizes that he won't be able to collect the debt, he will write it off as his loss and charge-off the account to a collection agency. This charge off can adversely affect your credit score.
So, if you really owe the debt, it's better to pay that off. If you can pay the full amount, you can contact the creditor and request the creditor to agree to a settlement. A settlement lowers the outstanding debt amount by 40-60%.
Hope this helps.
Regards,
Aaron