Business & Finance Debt

What You Need to Know About Debt Collectors and the Statute of Limitations

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.

SHARE
RELATED POSTS on "Business & Finance"
Debt Relief Grants - Don't Pay Any More Bills
Debt Relief Grants - Don't Pay Any More Bills
Debt Solutions For 2010 - How You Can Take Advantage and Eliminate Debt?
Debt Solutions For 2010 - How You Can Take Advantage and Eliminate Debt?
Debt Relief - How to Use the Threat of Bankruptcy to Terminate Half of Your Credit Debt
Debt Relief - How to Use the Threat of Bankruptcy to Terminate Half of Your Credit Debt
How to Zap Your Debt
How to Zap Your Debt
Debt Settlements Vs Bankruptcy - Why Debt Settlement Has Become the Appealing Post of 2005
Debt Settlements Vs Bankruptcy - Why Debt Settlement Has Become the Appealing Post of 2005
Help With a Credit Freeze
Help With a Credit Freeze
How To Advise People on How to Control Debt
How To Advise People on How to Control Debt
Debt Relief Options - Debt Settlement Deals and Stimulus Money
Debt Relief Options - Debt Settlement Deals and Stimulus Money
10 Questions You Need to Ask Yourself to Know If You Are in Deep Debt
10 Questions You Need to Ask Yourself to Know If You Are in Deep Debt
Erasing Credit Card Debt - Anyone Can Easily Eliminate Their Credit Card Debt by 55-60%
Erasing Credit Card Debt - Anyone Can Easily Eliminate Their Credit Card Debt by 55-60%
Ways to Approach Debt Reduction in a Tough Economy
Ways to Approach Debt Reduction in a Tough Economy
How to Get Out of Debt - Now You Can Get Out of Debt Quickly and Efficiently
How to Get Out of Debt - Now You Can Get Out of Debt Quickly and Efficiently
During Debt Consolidation Loan Keep Saving
During Debt Consolidation Loan Keep Saving
Debt Management Services - Paves The Way Out
Debt Management Services - Paves The Way Out
Credit Card Debt Settlement, is it Right For You?
Credit Card Debt Settlement, is it Right For You?
Discovering Low Interest Rate Debt Consolidation Loans For Those Holding Bad Credit Scores
Discovering Low Interest Rate Debt Consolidation Loans For Those Holding Bad Credit Scores
Online Programs for Debt Consolidation
Online Programs for Debt Consolidation
Bad Credit Debt Consolidation Loans - Simple Yet Effective
Bad Credit Debt Consolidation Loans - Simple Yet Effective
Debt Settlement Negotiation - Learn More About This Useful Tool For Getting Out Of Debt
Debt Settlement Negotiation - Learn More About This Useful Tool For Getting Out Of Debt
Credit Debt Settlement - Locating Debt Settlement Companies in Your Area
Credit Debt Settlement - Locating Debt Settlement Companies in Your Area
Debt Consolidation Loans - Financial Aid to Overcome the Burden of Debts
Debt Consolidation Loans - Financial Aid to Overcome the Burden of Debts
Credit Debt Relief - Get Rid of Credit Debt in a Legitimate Way
Credit Debt Relief - Get Rid of Credit Debt in a Legitimate Way
Credit Card Debt Management - The Best Solution
Credit Card Debt Management - The Best Solution
Practical Suggestions on How to Win Your Battle Against Debt
Practical Suggestions on How to Win Your Battle Against Debt

Leave Your Reply

*