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Credit-card-debt statute of limitation

Many Tennesseans have credit card debt. Some pay that debt off on time and in full. Others get behind. Then the ball is in the creditor's court. But only for so long. Creditors have the right to try and collect debts, but only for a period of time. After that, the statute of limitations will step in, barring the creditor from filing a lawsuit to collect the debt.

What is a statute of limitations? It acts much like a game clock in a football game. The clock counts down until it hits zero. After that a football team can no longer run any plays. So too, once the statute of limitations has run out, a creditor is barred from making further efforts to collect the debt.

Different states have different statutes of limitation for collecting credit card debt. Most range from three-to-six years. Some states go as high as 10 years.

How long is Tennessee's statute of limitations? Six years. After that, a Tennessean need not worry about the debt any further - even if the creditor is from a different state with a longer statute-of-limitations period.

But while Tennesseans may get a reprieve after six years, most are not so lucky. Usually a creditor will file a lawsuit to recover the debt well before the statute-of-limitation period runs.

Another option is filing for either Chapter 7 or Chapter 13 bankruptcy. To learn more about the pros and cons of these options, Tennesseans may benefit from speaking with an experienced bankruptcy attorney. Doing so could put an immediate halt to creditor harassment while offering a path back to financial freedom.

Source: NerdWallet, "Credit Card Debt Statute of Limitations: A Guide to All 50 States," Anisha Sekar, Accessed Aug. 30, 2016

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

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