Credit Card Charge Off

Yes, you need to go. Even if the statute of limitations has expired. Always show up for court dates, or else a default judgement will be entered against you.

The statute of limitations 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.

Credit cards are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. If there has already been a lawsuit resulting in a judgment, that judgment has a separate Statute Of Limitations.

For Illinois, open accounts have an SOL of 5 years, written contracts 10 years, and promisary notes 6 years.

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.

Thanks so much. Was wondering if I needed to go.. At the pretrial conference with the Judge do I admit guilt but move to have the case dismissed due to statute of limitations violations? Or not admit guilt due to statute of limitations... Then see if Plaintiff wants to take it to trial?

I am confused and worried..

I would go and tell the judge that this debt is past it's statute of limitations . . . . The judge should theoretically dismiss the case right there. I don't think guilt or innocence comes into play here, unless this is a case of ID theft and you really don't owe the debt.

Do you have proof of your last payment still? I know it's a long time ago, but if you do have any paperwork relating to this I'd dig it out and take it with you to court. This will help prove the sol on the debt. If you don't have any proof, still say it's past it's sol.

You should be fine as long as you at least show up. The judge should dismiss the case.

Send a dispute letter to the collection agency mentioning the expiry of the SOL. Send this letter CMRRR, because you have to show the receipt and the copy of the letter to the judge. If you can also show the proof of the last payment date, the judge will decide the case in your favor and order the company to stop all collections.

The debt still remains valid and will appear in your credit report with a negative mark. If you pay, there will be a slight improvement in your credit worthiness, or else this item will fall off after the seven year mark.

Actually, if the original poster is right, and the last payment they made was in 2000, then it should be off the report anyways . . . .

Thanks..

Re Bridgett, the judge would not actually order them to stop collections. Since it is a breach of contract complaint, the judge can only rule whether the plaintiff is entitled to a judgment or not. For a judge to start issuing injunctions and restraining orders on collection activity would be against his code of conduct and could be appealed. To actually have a judge order collection activity be halted, the defendant would need to file a separate complaint for this specific action. Even though a debt is past SOL, a creditor can still try to collect on it - they just can't sue over it.

In reference to another post you made, you indicated you now live in Florida. Be aware that under Illinois law, the SOL "tolls" itself while you are out of the state. This means that the clock stops ticking/pauses while you are not in Illinois. If you last paid in 2000, and moved to Florida in 2001, only 1 year of the SOL has elapsed and it has been paused ever since you left. It resumes its countdown when you come back into the state.

We will see...