Is There a Statute Of Limitations for Old Debts?

Full Video Transcript

Have you been contacted by a collection agency for a debt that’s several years old? Unpaid debts, whether fairly new, already charged off, or several years old, are typically sold off to debt collectors. Debt buyers purchase these debts with all the rights, title, and interest of the original creditor, and therefore, have the same rights to collect payment. Each state has laws limiting the time within which creditors can exercise their legal rights to collect on a debt. However, some courts have ruled that the expiration of the statute of limitation only prevents the filing of a lawsuit to collect a debt, and doesn’t necessarily mean that the debt itself is extinguished. That may be why debt collectors still call you about old debts. If you’re having problems with a past due debt, you should contact an attorney to discuss your legal rights. If the collector is violating the Federal Debt Collection Practices Act or your state’s laws, you might be able to make them stop. For more information, contact an attorney in your area today.