If you’re waiting for debts to be written off after a certain number of years, don’t hold your breath. There are laws that limit what debt collectors can or cannot do to collect old debts. But ultimately, you’re responsible for any debt that is incurred. The key to overcoming any serious debt is to eliminate it as soon as possible. With the proper actions, creditors will leave you alone so that you can rebuild credit and get back on track. Debt Advisors is a Milwaukee bankruptcy law firm that is familiar with Wisconsin laws that protect consumers. We have options and affordable resolutions to get out of debt.
Taking legal action to collect debt is covered by a variety of federal regulations and state laws. The “statute of limitations” is the law that determines the time limit, or “end date” for any legal collection action. Each debt type, (medical debt, credit card debt, mortgage debt, etc.), has its own statute of limitations. Although a debt collector cannot legally sue you after the statute of limitations expires, most won’t wait that long. In Wisconsin, the debt statute of limitations is six years from when the “debt clock” starts.
Debt Collection Laws In Wisconsin, “The Wisconsin Consumer Act.”
Debt itself doesn’t expire, only the “window for legal action” expires. People inadvertently “restart” the debt clock during the six-year period which prolongs the issue. Old debt can remain on your credit report long after the six-year period. When credit ratings plummet, lenders will be hesitant to work with you. If they do, you’ll pay a much higher interest rate than others. Waiting to pay off debts risks the loss of assets like your home, car, or wages. Without addressing the problem head on, the matters of debt collection become more complicated and burdensome with time.
More reasons why waiting to pay off debts is not worth the risk:
At Debt Advisors, we understand and interpret the laws governing consumer rights. Don’t live in fear of debt collection. We can help eliminate your debt. If filing bankruptcy is right for you, the process stops legal actions against you and protects your most important assets. Whether you’re within the statute of limitations or past it, the best thing to do is to speak to one of our lawyers. Get your free initial consultation. We don’t turn away people that need our help.