Debt Collection Laws and Time Limits
After six years of dormancy on a debt, a debt collector can no longer come after and sue you for an unpaid balance. If you do not pay the debt at all, the law sets a limit on how long a debt collector can chase you. If you do not make any payment to your creditor for six years or acknowledge the debt in writing then the debt becomes ‘statute barred’. The statute of limitations is a law that limits how long debt collectors can legally sue consumers for unpaid debt.
Time Limits Vary by State and Type of Debt
The statute of limitations on debt varies by state and type of debt, ranging from three years to as long as 20 years. Moreover, debt collectors are limited by state and federal laws on how long they can legally pursue debt.
Response to Court Summons
You have three options if you receive a summons for court. 1) Review the summons. 2) Gather documentation. 3) Decide how you want to respond. You really don’t want to ignore a summons.