Statue of limitations

It never fails. You’re home one evening about to eat dinner and the phone rings, the voice on the other end is a collector calling about a credit card or loan from years ago. So what is the limitations on that? Can they still collect after 5 years, 6 years or more? Am I obligated to pay?

Some points concerning Statue of Limitations:

• The Statue of Limitations (SOL) is the time limit for a creditor to file a lawsuit against a delinquent debt.
• This starts when the debtor becomes delinquent.
• The SOL only covers lawsuits; it does not affect other types of collection actions or the account being sent to the credit bureau.
• If there has already been a lawsuit resulting in a judgment, the Statue of limitations are different.

Here are the Statue of limitations for debts.

Here are the Statue of limitations for judgments.

The bible has many verses on paying our debts. It is the right thing to do! We are in violation of scripture when we have delinquent or outstanding debts and we have the money to pay but we don’t.

“Do not withhold good from those to whom it is due, when it is in your power to do it. Do not say to your neighbor, “Go and, come back, and tomorrow I will give it,” when you have it with you.”

Even if the statue of limitations have expired on old accounts, when you do one day have financial surplus, those old debts should be repaid. If it is in your power to do so, it will release a weight off of you and most importantly, God will be pleased.

“Don’t even try it” tax deductions

Benjamin Franklin said “in this world nothing is certain but death and taxes.” We are required to pay taxes to support individuals and government programs locally and nationally. While frustrating at times, Christians are commanded by God’s word to pay taxes.

“Because of this you also pay taxes, for rulers are servants of God, devoting themselves to this very thing. Render to all what is due to them; tax to whom tax is due; custom to whom custom; fear to whom fear; honor to whom honor.”(Romans 13:6-7)

To lighten our load there are various tax deductions that can help you reduce the amount of taxes you have to pay. A tax deduction is an expense you pay with variable amounts that you can subtract, or deduct, from your gross income, which allows you to pay less in taxes. However, it is wise to consult a professional Certified Public Accountant (CPA) to be certain about which deductions you can use. Many people get wrong or misleading advice and it ends up doing more harm than good once their taxes are filed.

I came across an article on MSN Money titled “10 don’t even try it tax deductions.” This article and professional assistance can guide you in the correct steps to take to ensure you don’t end up in trouble with the IRS.

Financial Honesty

What role does honesty play in our finances? How important is it to be truthful or is a “small lie” here or there not too significant? According to God’s Word, it is paramount.

In the book of Exodus, Moses was overwhelmed with complaints from the people of Israel. He was handling every complaint as they sought him for God’s guidance. Jethro, his father-in-law gave him wise advice and instructed him to “select out of all the people able men who fear God, men of truth, those who hate dishonest gain; and you shall place these over them, as leaders…” (Exodus 18:21) God wanted men who could be trusted, he placed significance on the fact that if he can trust them in financial issues, he can trust them to be leaders and guide his people according to his instruction.

Do you make unlawful “minor adjustments” to your taxes? Are you a saleman that willingly withholds pertinent information to close the sale? Are you getting paid for a 40 hour work week but only working 30 hours, stealing 10 hours of your employers time and money? Are you refusing to pay your tithe? Are you curtailing your financial legal obligations (debt) to take weekend vacations, buy a new wardrobe or go out with friends?

Do your actions show that you sacrifice your integrity for financial gain? When we strive to maintain a relationship with God we realize “better is the poor who walks in his integrity, than he who is crooked though he be rich.” (Proverbs 28:6) This does not mean that we should take a vow of poverty but it does relay the fact that our relationship with Christ should be placed higher than our financial status. I believe we should always seek to increase financially but only with honesty and integrity.

This is a life that pleases God. There is a promise in Isaiah 33:16 that those who practice financial honesty “are the ones who will dwell on high. The rocks of the mountain will be their fortress of safety. Food will be supplied to them and they will have water in abundance.”

From dishonest personal taxes to a Bernie Madoff style ponzi scheme in which $65 billion were stolen from clients, our finances should be approached and handled with complete honesty. It may mean our wealth will grow a little slower but God will be pleased and in the end that is all that matters.