Do you know that every kind of debt has its own time limit? This time limit differs from one state to another based on the type of consumer loan. Floridians with credit cards should know the statute of limitations credit card debt Florida State employs. Statute of limitation means time limit on which the debt no longer holds legal power anymore. Thus, after a certain period according to that limitation, bank or Credit Card Company cannot legally pursue borrower who bails out from their debt. There are more to learn about the limitations related to credit card debt.
To Know More about Debt Limitations
When loan borrower defaults from making their supposed payments, the limitation is applied to that debt. It starts from the date when default occurs. This expiry date is established to protect borrower from relentless pursue by the bank or credit card company. However, even if lender can no longer pursue payment legally, default from credit card loan agreement is still going to be present in their credit report and affects credit score badly.
If borrower fails to make monthly payment after certain period of time, it is possible for lender to file a lawsuit against borrower. Judgment might be issued to lender after that, allowing any acceptable effort to obtain payment from borrower. It is based on contract law, so statute of limitation to that judgment depends on the type of contract made at beginning of loan. Statute of limitations credit card debt Florida State employs is four years after the default from loan.
You can review law underlying this statute of limitation on The 2017 Florida Statutes Title VIII in Chapter 95 which has eleven clauses. But does that mean lender cannot urge borrower to make payment anymore? Not necessarily so. It just means that court does not support any legal effort that lender uses to collect debt. Lender can still try to obtain payment from borrower using other ways.
There is a thing that borrower needs to keep in mind, though. When statute of limitations credit card debt Florida State has been effectively applied, it can be revoked because of a certain act. If you make a payment to an expired credit account, the limitations are immediately taken back. It means that lender is then able to pursue borrower’s debt in the court again. So, if borrower wants to pay off their loan or refinance it, they have to make sure that the loan has yet expired.
Statute of limitations can be tolled or delayed when certain occurrences happen. Borrower’s disability such as illness that may impair their legal judgment will toll the limitations. It can also be tolled when borrower acknowledge or make an unconditional promise to settle their debt.
To deal with statute of limitations credit card debt Florida State, it is recommended that you get in touch with loan attorney. Legal information can be obtained for free if you try getting in touch office of state attorney general. However, there is a chance that you may not be able to do that easily. Local legal aid is another option for you.