Managing Debts With No Statute Of Limitations

In the United States, debt collectors have only a limited period of time in which to actively pursue collection on a debt owed to a creditor.. A debt that has passed its statute of limitations is called a time-barred debt, and this applies to most debts that you incur on a regular basis. However, there are a few debts that have no statute of limitations.

A debt that does come with a statute of limitations will pass its expiration according to state law. In some areas of the country, debts become time-barred in as few as three years, while other states allow up to seven. If a statute of limitations does exist on your debt, it will not longer appear on your credit report once it has expired.

To find out of your debt can become time-barred, you might need to speak with an attorney or other qualified financial professional. Laws vary by state, and can be confusing if you aren't familiar with the language. However, the following debts usually have no statute of limitations whatsoever.

Federal Student Loans

When you owe money to the federal government for education, it doesn't have a statute of limitations. However, government agencies are often willing to negotiate the original terms of the loan if you stay in constant contact with your creditors, so don't let this debt sit unpaid without taking appropriate action.

Fines

If you've been issued a fine from your local, state or federal government---such as traffic tickets or other violation of law---it also lacks a statute of limitations. If you don't pay your fine or appear in court on your scheduled date, a bench warrant will likely be issued for your arrest, and the fine can double overnight.

Child Support

Most states do have a statute of limitations on child support debt, but it is far longer than your average debts.

Alabama, for example, permits collection of child support for twenty years beyond the date it was ordered by a judge, regardless of whether or not the child is still a minor. California, on the other hand, doesn't have a statute of limitations at all, and Hawaii allows the enforcement of child support orders until the child reaches thirty-three years of age.

Taxes