Help! Bankruptcy Vs Debt Statute of Limitations

[MikeInVegas]

First off I would like to thank the person who replied to my previous posting!
Thank You!

Through my considering filing for chapter 7 bankruptcy I did some research of statute of limitations on credit card debts..In my state which is Nevada it states the creditors can collect up to 6 yrs? Please correct me if I am wrong ??

Most of my accounts were opened in 1999 ...My question is ..

Should I wait till the end of this year and NOT file for chapter 7 and pray none of my creditors slap me with a Judgement?

If I do get served a judgement how long do they have to pursue it further and take me to court for the debt?

Does this mean that the state statute of limitations would then be in effect and my creditors can no longer take me to court and sue me for the debt?

Any advice is greatly appreciated! I just love this forum group ..It's continued to help me. - Michael

[mymymy]

The Statute of Limitations timing begins at the DOLA (Date Of Last Activity)- in other words, when the account went deliquent.

Some accounts do pass the SOL without a lawsuit being filed. I think it depends on the amount of the debt. A lawsuit filed before the SOL has run out, even in the 11th hour, will forever be valid, unless action-such as filing BK- occurs or some other positive defense is available.

Also, if possible, you should read your original agreement with your creditors. SOME have fine print that reads, in effect, that the SOL is governed by the state of the issuer- not the residence of the debtor.

I had a creditor file suit at the 3 year, 11th month mark of an SOL. The amount was over 6000.00 so, it would have been worth the time and money to them had I not filed BK.

[HHM]

SOL is only a defense to a lawsuit. Although there is some argument that a collection ageny cannot pursue collection of a debt outside the SOL under the FDCPA, collection agencies can still typically attempt to collect a debt even if its outside the SOL (they just can't file or threaten to file a lawsuit).

Also, the clock on the SOL begins on the date of last activity, so the last time you made a payment or the last time your charged to the card (which ever is later).

Using the SOL is generally not a good way to deal with debts. Bankruptcy brings certainty to status of the debts. Plus, using the SOL does nothing to help improve your credit score.