Statute of Limitations Questions

What do I do if a collector attempts to sue on an old debt?

We urge you to seek legal advice if you believe a collection agency is trying to collect on a debt for which the statute of limitations has already passed. Old, delinquent debts are also referred to as "zombie" or "time-barred" debt. This industry has become a profitable business for debt collection companies in recent years. MSN Money reports that debt buyers purchased $110 billion of old debts in 2006. However, zombie debt has also been the subject of concern among several Federal Trade Commission (FTC) complaints. Infringements included inflating the amount of outstanding debts, contacting consumers at work, and threatening to take actions that they did not intend to take such as reporting the debt to the credit bureau and legal proceedings. For more information about complaints against debt collectors, visit the FTC's web site and click on the "News" link.

Are there any debts that do not have a statute of limitations?

According to FairDebtCollection.com, a statute of limitations does not usually apply to federal student loans, certain types of fines, delinquent child support, and taxes.

DISCLAIMER: THIS IS FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT INTENDED TO BE LEGAL ADVICE. ANY INQUIRIES ABOUT SPECIFIC SITUATIONS SHOULD BE DIRECTED TO A LAWYER.

Credit Answers specializes in debt settlement, credit card debt negotation, debt management and avoiding bankruptcy. Credit Answers team of experts work to enable a new and fresh financial start for individuals with debt problems. We realize the importance of money in people’s lives and also the accompanied strain that debt can cause. Our team has helped thousands of clients across the nation.