Old Credit Card Debts, Statute Of Limitations And Your Obligations
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If you are contacted about a very old debt that you owe, it is very important that you do not act hastily. And here’s why.
Every debt has a statute of limitations. If the debt is more than six or seven years old, in some states, the debtor no longer has the legal ability to take you to court over the debt. It may only be 3 or 4 years and the debt is wiped out.
However every state has different laws, and if you live in one state and owe an old debt from another state, it can get even more complicated.
If you are contacted about paying back an old debt, the best thing for you to do is to speak to an attorney.
The problem is, if you even speak to the debt collection agency, you may accidentally reactive a debt that you no longer owe.
Even if it is a small amount, talking to the debt collection agency can cause you harm – because you can cause the debt to suddenly appear on your credit report…after it had dropped off completely…which can cause your credit score to plummet. And if your credit score plummets you can be denied loans or suddenly see your interest rates skyrocket.
This is not a suggestion that you ignore your debt obligations; if you borrow money, you should always repay it. However, you should always know your rights under the law and should be punished with bad credit just for trying to negotiate with creditors in good faith.