Time barred debt
This query is : Resolved
30 May 2012
What is meant by Time Barred Debt?
31 May 2012
Time-barred debts are debts that are too old for creditors and debt collectors to sue you for. Each state has a law that dictates how long a debt collector can sue you for a debt. This period is known as the statute of limitations and is between three and six years for most dates, but can be longer. Before you respond to an old debt, check the statute of limitations in your state. You can confirm the statute with your State Attorney General.
prohibits debt collectors from suing or even threatening to sue you for a time-barred debt, but that doesn't mean it won't happen. In February 2012, the Federal Trade Commission sued one large debt collector, Asset Acceptance, for violating this part of the FDCPA. As part of the settlement, Asset Acceptance now has include a "will not sue" notice in collection notices for debts that are past the statute of limitations.
If you happen to be sued for a time-barred debt, you can simply provide the court with proof that the statute of limitation has expired. Don't ignore a lawsuit summons under the assumption that it will take care of itself. The creditor or collector could obtain a default judgment against you and an order to garnish your wages.
prohibits debt collectors from suing or even threatening to sue you for a time-barred debt, but that doesn't mean it won't happen. In February 2012, the Federal Trade Commission sued one large debt collector, Asset Acceptance, for violating this part of the FDCPA. As part of the settlement, Asset Acceptance now has include a "will not sue" notice in collection notices for debts that are past the statute of limitations.
If you happen to be sued for a time-barred debt, you can simply provide the court with proof that the statute of limitation has expired. Don't ignore a lawsuit summons under the assumption that it will take care of itself. The creditor or collector could obtain a default judgment against you and an order to garnish your wages.
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