It is common for an unpaid debt to get transferred from one collection agency to another. It is common for your debt to transfer hands between several collection agencies. This process can be frustrating as you have new collection agencies to deal with every time and you have to start the process of debt validation as well as sending cease and desist letter is all over again. But this cycle of trying to collect from you has is to stop somewhere and after some time. This is where the statute of limitation comes in. Statute of limitation is the federal as well as a state law that prohibits a collector from suing you in a court of law and forcing you to pay on a debt after a certain period of time. The state that you will determine what are the statute of limitation is on your particular kind of debt and usually ranges from 3 to 6 years.
The statute of limitation on a debt should not be confused with the time limit that a debt can be listed on a credit report. Most kind of unpaid debts stay on the credit report for a period of seven years although tax liens and bankruptcies can stay a period of 15 to 10 years respectively. The credit reporting time limit is separate from the statute of limitation and it is not inconsistent of limitation for collecting a debt.
The statute of limitation collecting a debt is a time period within which a collector can sue you in a court of law and forced to pay for a debt. The time period starts on the accounts last date of activity and differs with different states.