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  1. #1
    Join Date
    May 2008
    Posts
    1

    Default Which Statute Of Limitations Applies to an Out of State Debt

    My question involves judgment recovery in the State of Minnesota

    I have recently been recently been trying to clean up my credit report and have found several things listed that are not familiar to me, or collections I never knew I had. The ones I knew were in fact mine, I paid immediately.

    I had an account listed by Midland Credit Management (original creditor was Household Bank) for $980.00. This is a credit card I had gotten while living in North Carolina 3 years ago with a $300 limit that I used a few times and never paid. Stupidity I know, but at the time I was going through a terrible divorce as well as preparing to be a single active duty parent moving to a new state. About a month ago I received a letter in the mail from a law firm in Minnesota that is representing Midland Credit stating that since it is Tax return time, now would be a good time to settle the debt etc. A week later, I was served in person at my home with a Summons for this account.

    The Date of Last Activity and Date First Delinquent is May 2005. The Statute of Limitations for North Carolina is 2 or 3 years, in either case it has passed or is exactly at it's end now. Minnesota is 6 years I believe.

    My questions are these:

    Which Statute of Limitations applies in this case? North Carolina since that is where the account was originally opened and first went delinquent/last active? Or Minnesota since that is where I now live?

    Please help with how I reply to this Summons. I want to avoid a Judgement at all costs, but unfortunately I don't have the means to pay for this in full at the moment. If I am to try to avoid court and make arrangements on this account, do I contact the Law Firm representing Midland or the collection agency themselves?

    Any and all advice is greatly appreciated. I have managed in just 2 months time to raise my credit scores over 110 points. This would be a huge setback that I really don't need

  2. #2
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Which Statute Of Limitations Applies?

    Minnesota has a "borrowing statute" (more correctly, a series of statutes) describing the statute of limitations that applies; See Minnesota Statutes, Sec. 541.30 et seq. However, the statutes provide, "Sections 541.30 to 541.35 apply to claims arising from incidents occurring on or after August 1, 2004," making them appear irrelevant to your case. From what I can find, when those statutes do not apply Minnesota applies its own statute of limitations to cases brought within its court system. It's worth asking a local lawyer.

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