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What’s the Problem with the Statute of Limitations?

By: Michael Millington

There is a fundamental problem with the statute of limitations for unsecured debts. If you honestly cannot pay off your debts, adhering to the statute of limitations gives you the ability to have a debt eliminated from your financial background. This can be extremely helpful in regards to your credit, especially if you are financially strapped.

However, the problem with the statute of limitations is that it doesn’t always help you get rid of a debt completely. The worst thing about a debt that’s supposed to be gone is when people still look to collect on it from you. The worst part is nobody tells you about the ways statutes of limitations can help or even hinder your ability to rid yourself of debt.

What is a Statute of Limitations

A statute of limitations gives you a set amount of time to pass by before you no longer had to legally pay it off. The first negative aspect of the implementation of statute of limitations is that no one tells you about the statute. The main reason it isn’t mentioned is because most people want you to pay off your debts, regardless of whether you legally owe the money or not. 

Is Waiting for the Statute of Limitations A Good Idea

Waiting for people to eventually forget about your debts might be the only thing you CAN do. However, this is never the given solution when debt is involved. Always strive to clear up your debts before they become huge financial issues. In some cases, look into other ways to temporarily alleviate the ongoing, month after month debts you have if you find yourself in a precarious financial situation.

Waiting for the statute of limitations to be up won’t stop people from trying to collect debts from you. In many cases, when the statute of limitations is up on a debt, it still doesn’t stop bill collectors (especially third party collectors) from trying to collect. The best thing that any one individual can do is pay off their debts in full as soon as possible.