Statute of limitations

[SHV]

What is the name of your state? Florida

Unfortunately, the last four years have been very difficult. Up until then I was always able to pay my debts. Sallie Mae has my student loans on deferment at this time, but other creditors have turned me over to collection agencies. I'm working, but bringing home less than $1,100 a month, which barely keeps a roof over my head and pays for bare necessities. I would much rather pay, but I am at the point that I see no way in the even distant future to be able to. I recently found out that states have a statute of limitations on collections of certain debts, but I'm confused as to exactly what happens to the debt, when it happens and which debts are covered. Also. I know that my Federal Student Loans will have to be paid, but are the private bank student loans and credit card debt covered by this?

Thank you for your assistance.

 

[Ladynred]

I recently found out that states have a statute of limitations on collections of certain debts,

Yes, and in FL is 4 and 5 years. While some credit cards, store cards, have been ruled to be under the 4 year, other credit cards are falling under the 5 years for 'written contracts'.

but I'm confused as to exactly what happens to the debt, when it happens and which debts are covered.

Nothing happens to the debt. Collectors can still try to collect, though there is case law that says it's a violation of the FDCPA to even collect on an out-of-statute debt. The SOL will cover most consumer debts, including car loans and mortgages. The SOL begins with your first delinquency after which no payments are ever made again.

The SOL is an affirmative defense in court if you are ever sued for the debt. It is not a bar to collections or lawsuits - at least not in FL.

Also. I know that my Federal Student Loans will have to be paid, but are the private bank student loans and credit card debt covered by this?

Student loans have no SOL.