How Long Can Creditors Pursue a Debt in California?

How Long Can Creditors Pursue a Debt in California?

A central question in your mind may be how long can creditors pursue a debt in California? The typical statute of limitations is four years for most debts. What this means is that a creditor won’t be able to prevail in court once four years have passed. This makes the debt basically uncollectible.

However, this doesn’t absolve you from owing or protect you from consequences. This is what you need to know.

California’s Statute Of Limitations in Detail

Debt collectors in California are granted a statute of limitations within which they are allowed to sue a debtor in an attempt to collect on what is owed to them. While every state has its own statute of limitations, California is well known for its shortest terms for most types of debt collection. In fact, only a handful of states have shorter statutes of limitations.

The statute of limitations in California for almost every type of debt is 4 years. Tax debt, however, is 20 years. Debts that are taken on through an oral contract are an exception. They have a 2-year statute of limitations.

You need to take care when agreeing to pay a debt that exceeds the limitations. You are well within your rights to ask the creditors if your debt is time-barred or a zombie debt. They are required to provide you with an honest answer. In California, paying even the tiniest amount on a zombie debt will reactivate the statute of limitations. You need to be sure that you want to reactivate this old debt before you make any payments.

Debt Consolidation Options In California

Freedom Debt Relief’s advice for Californians is to find an alternative solution to their debt. Two options, California debt consolidation and relief, can be a lifesaver when making ends meet becomes harder and harder.

California Debt Consolidation

California debt consolidation achieves two things, lowering payments and providing better organization for those payments. You’ll combine multiple debts into one by borrowing from one source and using that money to pay off your debts. In the process of doing this, you may even be able to lower your current interest rates.

California Debt Relief

With debt relief, a dedicated debt relief firm will negotiate on your behalf with your creditors to settle for less than you owe. Many times your creditors will agree because it will save them the hassle of going through a long, drawn-out collection process that will likely fail. While your payments are likely to be reduced, you will have to deal with a damaged credit score.

Laws Protecting Debtors In California

Through everything, the debt collection laws in California will be there to protect you. Collectors cannot use any information that is misleading or false in any way about your debt. This is ideal because it should protect you from any trickery in restarting a zombie debt. The laws also govern when they can call and, if you request it, make them stop calling.

Know Your Debt Collection Rights in California

When it comes to debt collection it’s very important to know how long can creditors pursue a debt in California? When times get tough and you get behind on your bills, you need to know the answer to this question. With most debts, the statute of limitations is 4 years, protecting you from legal action after this time is up.

In the time before that, you can consider options like California debt consolidation to lower your payments and possibly even your interest. With these plans, the financial pressure will be alleviated and you will be able to breathe.

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