General Timeframes
The statute of limitations varies by state: written contracts 3-10 years, oral contracts 2-6 years. The clock usually starts from the date of default or the date of the repossession/foreclosure sale.
What Resets the Clock
Making a payment -- even a small one -- can restart the statute of limitations in most states. Written acknowledgment of the debt may also restart the clock. Never make a payment on an old deficiency without understanding the consequences.
Time-Barred Debt
Once the SOL expires, the debt is time-barred and unenforceable. Collectors may still try to collect but cannot successfully sue. Under the FDCPA, suing on time-barred debt may itself be a violation.
Frequently Asked Questions
Does the SOL apply to a judgment?
No. Judgments have their own lifespan (typically 10-20 years, renewable). If you already have a judgment, consider a motion to vacate or bankruptcy.
What state's SOL applies?
Generally the state where the creditor would file suit -- usually where you reside or where the contract was signed.
Can a collector sue me for a time-barred deficiency?
They can file the lawsuit, but if you raise the SOL defense in your answer, the case should be dismissed. Always respond to lawsuits.
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