Consumers have a great advantage when it comes to dealing with debt collection efforts when the debt in question has passed the statute of limitations. Unfortunately, not everyone knows about the implications of time-barred debt, and that leads many people to be frightened into paying debt when they really don't have to. Because every state's statute of limitations on debt is different, you'll have to look up the limits on your particular debt. If you find that it's time-barred, here are some tips for how you should deal with debt collectors.
Know the Risks
Just because a debt is past the statute of limitations, that doesn't mean that debt collectors can't attempt to collect it, but it does mean that their means of doing so are drastically limited. For instance, they can't take someone to court who owes a time-barred debt - in fact, they can no longer even threaten you with the possibility. In addition, their ability to garnish your wages is gone. But the advantage can quickly be transferred to the debt collector if you make one wrong move, and those trained in the art will do everything they can to make you slip up. For instance, if you pay even a small amount on the debt, the debt collector will have the right to "re-age" the debt, and the time on the statute of limitations will start all over again. This means that even if the debt is seven years old, and the statute of limitations is five years, they can start the clock over and have the right to sue for five more years. Some states allow debt collectors the right to re-age a debt if the consumer even acknowledges that they owe it.
Don't Speak to Them
The best way to avoid accidentally re-aging your debt is to refuse to speak to a debt collector on the phone. Remember, they're trained to get to you to do or say something that will re-age the debt, so you should avoid this at all costs. Instead, when a collector calls about a debt that has passed the statute of limitations, simply hang up the phone without saying a word, or let your answering machine or voice mail pick up the call.
Show up in Court
Some debt collection agencies will file lawsuits on time-barred debt in hopes that the consumer won't show up and they'll win by default - and unfortunately, that's exactly what happens many times. If you're served notice for a hearing on a debt that's past the statute of limitations, don't assume that you'll win the case even if you're not there. Some states require that the consumer show up to court and present evidence that the debt is indeed time-barred.
The statute of limitations can work in your favor if you have a time-barred debt, but it's important for you to know the rules. Learn your rights by researching the Fair Debt Collection Practices Act, and then never be a victim to a rouge debt collection agent again.
Know the Risks
Just because a debt is past the statute of limitations, that doesn't mean that debt collectors can't attempt to collect it, but it does mean that their means of doing so are drastically limited. For instance, they can't take someone to court who owes a time-barred debt - in fact, they can no longer even threaten you with the possibility. In addition, their ability to garnish your wages is gone. But the advantage can quickly be transferred to the debt collector if you make one wrong move, and those trained in the art will do everything they can to make you slip up. For instance, if you pay even a small amount on the debt, the debt collector will have the right to "re-age" the debt, and the time on the statute of limitations will start all over again. This means that even if the debt is seven years old, and the statute of limitations is five years, they can start the clock over and have the right to sue for five more years. Some states allow debt collectors the right to re-age a debt if the consumer even acknowledges that they owe it.
Don't Speak to Them
The best way to avoid accidentally re-aging your debt is to refuse to speak to a debt collector on the phone. Remember, they're trained to get to you to do or say something that will re-age the debt, so you should avoid this at all costs. Instead, when a collector calls about a debt that has passed the statute of limitations, simply hang up the phone without saying a word, or let your answering machine or voice mail pick up the call.
Show up in Court
Some debt collection agencies will file lawsuits on time-barred debt in hopes that the consumer won't show up and they'll win by default - and unfortunately, that's exactly what happens many times. If you're served notice for a hearing on a debt that's past the statute of limitations, don't assume that you'll win the case even if you're not there. Some states require that the consumer show up to court and present evidence that the debt is indeed time-barred.
The statute of limitations can work in your favor if you have a time-barred debt, but it's important for you to know the rules. Learn your rights by researching the Fair Debt Collection Practices Act, and then never be a victim to a rouge debt collection agent again.
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