We are often presented with questions by the people we collect from.

These answers should be considered general common sense, and not specific legal advise.  Every one’s situation is different, and we are specifically not offering legal advise in the following article.

Florida Debt Collection Questions

 

I co-signed for my nephew, and now he can’t make payments!

If you cosigned, then you are liable, that’s what co-signing means.   You are just as liable as your nephew.  If  you want to protect your credit, then paying makes a great deal of sense.  Any creditor has all the the rights and remedies against a co-signer as the primary.  PLEASE be sure you know that when you sign on the dotted line.  Sometimes, it is a better idea to loan the money directly to your nephew, and have him pay you back, than to be blindsided to discover no payments have been made for months, and you are responsible.

Debts that are past the statute of limitations are still on my credit report!

Different debt has a different “statute of limitation”.  A statute of limitation, is the period of time that a court will enforce your obligation to pay a debt.  After a certain period of time, while you may still owe the debt, the court will not enforce it.  This has nothing, absolutely nothing, to do with reporting the debt.   A courts ability to enforce a debt is entirely and totally separate from a credit agency’s reporting ability.

The general guideline for reporting is that the credit reporting agency may report your credit delinquency for up to 7 years from the first date of delinquency  (defined as more than 180 days past due).  This is totally separate from a statute of limitations on collecting a debt.

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