Legal Question in Credit and Debt Law in California

Re: Statute of Limitations

The statute of limitations refers to the time period to file a lawsuit. Most revolving credit situations involve a 4 year statute of limitations.

If the creditor fails to file a complaint within 4 years of the last payment on the debt, then the creditor would be barred from filing a lawsuit to collect it. If the creditor filed a lawsuit after the statute of limitations had expired, there would be a violation of the Fair Debt Collection Practices Act.

Once a judgment is obtained there are statutes that say how long the judgment is valid. A judgment is valid for 6 years in Nevada. Before the expiration of the 6 years, you must file a document to renew the judgment.

The Fair Credit Reporting Act governs how long debts and judgments can be reported on a credit report. Debts and judgments can be reported upto 7 years after the time that they were owed or could have been enforced.