Many customers are not aware of Statue of Limitations on debt that they may own. Everyday

thousands of consumers pay off collection accounts, and charge-offs which they do not have

to pay off because of the Statue of Limitation has already expired for the open account. It

simple mean if you have not pay your charge-off for several of years , debt collection

company can’t collect money from you because time to collect money has expired but a lot of

consumers still paying charge-off or collection accounts because the accounts still appear

on their credit reports.

This information is a powerful weapon against original creditor and a collection agency

when it time to fight with them about your old debts. You should remember that the Statute

of Limitations begins to run from the day the debt or payment on an open-ended account was

due. Also this has nothing to do with how long a negative credit item can remain on your

credit report but mostly it appears for 7 years.
Many consumers also pay off these accounts when they are not on their credit reports

because they are scary that someone may find them and take what they own. Even though an

account was removed from their credit file, a collector watched their credit report for any

activity and when they find it, they call consumer for payment.  All of what consumer

should say to collector is “I have an absolute defense-the Statue of Limitation has

expired” simple mean that they can’t collect any money because statute of limitation has

expired.
The Statute of Limitations does not cause your debt to go away after it expires. If the

creditor files suit, the consumer has an absolute defense. The consumer must offer the new

evidence to avoid a judgment. The evidence will consist of papers the consumer files to

support his claim. If the creditor sues you, and you do not prove to the court that the

Statute of Limitations expired, you will have a lost lawsuit and a judgment against you.