Statute Of Limitations On Debts \'When Can Credit Dings Come off Your Credit Report\'

Statute Of Limitations On Debts 'When Can Credit Dings Come off Your Credit Report'

(EMAILWIRE.COM, August 02, 2007 ) Livonia, Michigan -- The Credit Consulting Group has prepared the following explanations on the different kinds of debt and the effect the statute of limitation has on debt. First, it should be understood what the term statute of limitation means. The statute of limitations (SOL) for a delinquent debt is the time limit for the creditor to file a lawsuit. This period starts when the debtor becomes delinquent. The fact that the SOL has "run" (expired) on a particular debt will not necessarily prevent a lawsuit from being filed (via a Summons And Complaint), but the defendant can have the suit dismissed on this basis. The Statute Of Limitations only covers lawsuits, and SOL expiration does not affect other types of collection action or reporting of the account to credit bureaus. The creditor or collection agency may theoretically continue with letters and telephone calls forever (although third-party collectors are subject to the "cease and desist" provision of the Fair Debt Collection Practices Act.) However, they will generally put much less effort into collecting "Out-Of-Statute" debts, and may give up easily. Out-Of-Statute debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act. Oral Contract: You agree to pay money loaned to you by someone, but this contract or agreement is verbal (i.e., no written contract, "handshake agreement"). Remember a verbal contract is legal, if tougher to prove in court. Written Contract: You agree to pay on a loan under the terms written in a document, which you and your debtor have signed. Promissory Note: You agree to pay on a loan via a written contract, just like the written contract. The big difference between a promissory note and a regular written contract is that the scheduled payments and interest on the loan also is spelled out in the promissory note. A mortgage is an example of a promissory note. Open-ended Accounts: These are revolving lines of credit with varying balances. The best example is a credit card account. If you are concerned about possible lawsuits, you may wish to confirm this with your state's Civil Code and/or a qualified attorney. If you find any discrepancies or errors here, please let us know at: customerservice@thecreditmanual.comAdditional tips to creating their own great credit and wealth include: Follow the piles of cash. Find people who have successfully [created wealth] and learn from them. Remember, it's not only what they know, but who they learn it from. Learn from someone who is more successful then you. Learn the credit game from the expert. Everyone deserves to have good credit. Mark Maupin, Co-founder of National Real Estate Network LLC, said “I have used this credit service with great success and have sent many people to them with great success.” For free credit Manual go to: http://www.TheCreditManual.com.### This press release was issued through GroupWeb EmailWire.Com. For more information on press release distribution, go to http://www.emailwire.com.

Detroit Investment Homes
Mark Maupin

maupin.mark@gmail.com