Legal Question in Credit and Debt Law in Missouri

Re: Unsecured debt statute of limitations

Much of your question depends in large part on the nature of your account. As a general rule, an action on a contract in writing must be brought within ten (10) years in Missouri. For that reason it is quite possible that the debt might be sued on even after nine years has elapsed. Although it is unlikely that a debtor would hold open an account for this long, it is possible.

Some credit card companies sell their "bad paper" to companies like Cavalry Investments, a company that buys up credit card accounts for pennies on the dollar. They then execute a merciless collection effort against the debtor, sometimes six, seven, or as long as ten years after the amount has been written off. Their collection efforts are entirely legal. Sometimes the underlying credit card company will issue a 1099 to the IRS showing that your debt has been "written off." The IRS charges you with that amount of income. If that happens, and it happens with some regularity, then you have a valid defense that you have "changed position" in reliance on the credit card company's actions, and as a result, you may not be required to pay the debt (or are at least entitled to a set-off as to the amount of tax liability incurred).

As a general rule an account that has been sent to collection and is more than seven years old should not appear on your credit report.