The notion of time barred debts are there
to protect the debtor from old debts. Time barred debts refer to
debts that have been outstanding past the set time frame of collection
deemed by the state that the debt was accrued.
A time barred debt lawsuit refers to an illegal lawsuit filed on a debt that
has expired. Creditors have only a specific time period to file a lawsuit against
an outstanding debt. Of course, these time limits vary greatly from state to
state. Some states can only file a collection lawsuit within the first two years
after the debt has been accrued. Other states can file a collection lawsuit up
to fifteen years after the debt has been accrued.
It is not uncommon for these lawsuits to pop up long after the allotted time
frame has passed, especially if for some reason you dropped off the radar for
awhile. Creditors who file time barred lawsuits expect that most debtors are
not fully aware of their rights and the laws which are there to protect them
from these types of lawsuits. Many creditors have lobbied to release these lawsuits,
stating that they are unfairly supportive of the debtor.
Part of the protection factor is of course in an effort to protect a debtor from
unfair charges and unfair collections. Nobody wants to put the time and effort
into cleaning up their credit only to have someone sneak up from the past and
claim that you have an outstanding debt. If this does happen, never respond,
in part of in full, without first speaking to a legal representative, as admitting
to the validity of the debt at any time can wipe clean the time statute and re-instate
the debt.
If you have cleaned up your credit and you receive notification that is in violation
of the time barred lawsuit laws, it is imperative that you seek legal counsel
when responding. Your credit is now just a number, a score that tells people
where you stand with the world and your ability to pay off what you owe. The
number does not come with explanation and having a time barred debt hanging over
your head isn’t going to reflect better on your credit score if you simply
ignore it.
Dealing with these types of collections is usually fairly simple and painless.
In most cases, a letter from the lawyer reminding the creditor that they are
in violation of time barred debt laws and that the debt is cleared in respect
to the laws. Like mentioned before, creditors bank on debtors not understanding
their rights and will often ignore the laws in order to collect the debt anyway.
Having an attorney remind them of the law sends them a clear message, and most
of the time they listen and go about harassing someone else.
Not all collection agencies play by fair and legitimate rules, and find breaking
the law acceptable in order to collect a debt. Of course, collecting a debt that
is no longer owed is stepping well outside the bounds of reason.
