What does statute of limitations mean and what is its purpose?

The statute of limitations is a law that brings some fairness to the consumers that they may not worry about whether or not they are going to be sued for a debt that was from a long time ago. It was also created to give the consumer a chance to defend himself/herself in court, if needed be (dispute for error), armed with fresh evidence and witnesses.
The statute of limitations refers to the allowable time for creditors to pursue collection of a debt. If the statute of limitations on the debt has expired, the creditors may no longer have the right to pursue any legal action against the consumer to collect the money owed. *The statute of limitations differs from state to state.


What if the debt is past the statute of limitations?

It means that the consumer does not have to pay debt that is considered too old by his/her state.

What are some of the issues that the consumer should look out for after the expiration of the statute of limitations?

When the expiration date is nearing that’s the time that the consumer suddenly hears from a collection agency -- threatening to sue him/her if he/she doesn't pay immediately.

How do collection agencies work?
Old debts and debt buyers
How debt collection accounts affect your credit report
Dealing with debt collectors for old accounts on your credit