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I used to live in South Carolina, USA and lost my job. As a result I defaulted on credit card debt. I have not paid anything on it for the last year and the debts were "Charged Off", and are in various stages of collections. I had to move to Texas for a new job.

It has been over 1.5 years during which debt was not being paid. I just noticed that SC has a statute of limitations for debt or 3 years, and Texas is 4 years. Which statute applies?

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The one whose law applies to your credit card contract

So, probably neither. Most likely the state where the credit card company is based.

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  • I'm not at all sure of that. After all, the assets they aim to garnish are not in Delaware, they're in Texas. Why would a Texas savings and loan or Texas employer cooperate? – Harper - Reinstate Monica Dec 10 '19 at 23:28
  • @Harper-ReinstateMonica The OP isn't asking about cross-state garnishee orders (which is a perfectly fine question if you want to ask it) they are asking about which state's statute of limitations apply. – Dale M Dec 10 '19 at 23:43
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All of those jurisdictions apply. Generally, a bank will try to file lawsuit in whichever jurisdiction is most advantageous to them, which could include the jurisdiction where the bank is headquartered, the place you were first issued the card, any place you've lived since then, or even the place where the card was most often used. Whether or not the bank will be allowed to proceed with the case in that jurisdiction is up to the specific state and the judges who hear the case. Only a few states have modified statutes that forbid banks from using their state's court systems to collect debts from non-residents.

So, if you've moved, you should expect that a lawsuit might be filed in any relevant location. You should consider the matter resolved once all the relevant statutes of limitations have expired.

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