Can A Debt Be Collected After 10 Years?

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Can A Debt Be Collected After 10 Years?

CFO Tech Outlook | Thursday, January 02, 2020

Here is an outline of the timelines for debt collection and steps to be taken if you are contacted about an old debt.

FREMONT, CA: Whether it is credit card debt, medical debt, or unpaid student loans getting calls or from debt collection companies can be irritating. It is more frustrating if the debt is several years old. People wonder how long a debtor can try to collect these debts and how long it can affect their credit score.

Is it possible to collect a debt after ten years?

It is impossible in most cases, but still, it depends on when the last payment was made. If a debt is about ten years old, but you were making payments under an agreement with the stake man until three years ago, the debt is still within the statute of limitations, and a debt collector can pursue it.

How long can a debt collector pursue an old debt?

Every state has a different law referred to as a statute of limitations that explains the time period during which a collector may sue borrowers to collect debts. In most places, they run between three and six years after the last payment was made on the debt. It means that even if you’ve made a payment sometime in the previous four to six years, an old debt may still be able to be collected. Some debt companies that buy and try to collect very old debts, still go after borrowers and even take them to court. Most borrowers who are sued for old debts won’t show up in court and the judge issues a default judgment.Top Financial Security Solution Companies

What steps to be taken if you are contacted about an old debt?

No need to automatically pay an old debt if you are contacted about it. It is mandatory to be aware of your rights as consumers before agreeing to terms and providing payment. Take the following steps to see if you need to pay the debt and what your options are:

• Ask the creditor to send a written notice of the debt.

• Validate the debt.

• Ensure that the debt is within the statute of limitations.

• Decide on an action.

See also: Top FinTech Solution Companies

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