How Long Can a Company Try to Collect Your Debt in Virginia?

by Jun 6, 2022Blog

Each state has its own laws concerning debt collection. In Virginia, there is a statute of limitations for how long collectors have to file a suit to collect debts from a person. The kind of debt you owe determines how much time a creditor has to try and get a person to pay their debt.

Let’s review debt collection laws in Virginia further and what options a debtor has to tackle their debt.

How long before a debt becomes uncollectible in Virginia?

When pursuing debt relief in Virginia, one of the first steps is determining if the debt is still within the statute of limitations. This can change your approach to your debt payments.

It’s important to note that you still owe the debt once the statute of limitations passes. However, creditors will have fewer options to pursue you, like judgements or taking you to court.

Here is the time limit for different types of debt in Virginia:

  • Mortgage debt: 5 years
  • Medical debt: 5 years
  • Credit card debt: 5 years
  • Auto loan debt: 4 years
  • State tax debt: 7 years

Keep in mind the statute of limitations listed above applies if a creditor can prove a written contract. If they can’t, it’s considered an oral contract, which has a different time limit. An oral contract usually has a shorter statute of limitations.

If you’re unsure or feel like your debt has gone past the statute of limitations, you should consult a financial credit advisor. They can verify if the debt collection is valid or not. They may also provide help if a creditor is using illegal methods to get you to pay your debt.

The statute of limitations can also restart if you have contact with creditors, like making a small payment or even promising to pay the debt. This is why you should handle any collection letters carefully and consult with a financial professional on what to do.

How can I tackle my debt in Virginia?

Not making timely payments toward your debts has significant consequences. It can negatively impact your credit score and can affect your ability to take out a loan in the future.

Taking control of your debt can feel overwhelming, but you shouldn’t ignore it. Creditors in Virginia have several years to pursue you to pay your debt and can file a lien until the debt is paid. Don’t let it get to that point, and start working on a debt repayment plan instead.

You don’t have to do this alone. Having an experienced, sympathetic financial advisor on your side can make the debt repayment process less stressful. Improve Credit LLC can help you develop a personalized plan to solve your financial problems.

Our Debt Management Plan will help you pay off your debts so you can improve your credit score and live a financially healthier life. If you’re interested in a free analysis of your situation, please contact us online or give us a call at 704-877-8739.