how long can debt collectors try to collect on debts from past years...
2006-10-05 11:54:50 · 6 answers · asked by marcella l 3 in Business & Finance ➔ Other - Business & Finance
omg i found out the hard way, pay the suckers off fast. not only will you still owe the debt but also late fees, over limit fees, and financed %'s. if its taxes the states (ar.ma,mi) are probable differ but if you owe the government its 7 yrs if they owe you its 3, how fair is that?
2006-10-05 13:20:38 · answer #1 · answered by rae 2 · 0⤊ 0⤋
There is no statute of limitations on debt. Some people think there is but they will soon find out that is wrong.
These days they are trying to collect on debts 20 years past. Generally, if you are in the US, a bank will write your debt off after 7 years. At that point your debt is forgiven. However things have changed and banks are selling off bad debts for pennies on the dollar to huge collection agencies. With more people in Law schools every year than there are jobs for them, many are getting into debt collection. They wil harrass, lie to you, and try to trick you into signing or paying something that will never remove the debt from your reports. If you cannot pay it all do no pay a penny. State laws are different. A state law might protect you but the second you sign anything or pay even a penny you are accepting that debt. Instead get online and look at your credit report now. Challenge every debt on there with the forms provided. Do not believe one word that the telemarketers tell you when they call. Just hang up and don't say one word.
What you can do- File for protection or ride it out and don't pay. If you do that you must never talk to them. Change you phone numbers. If they have your office number get their address and send them a notice to not call you at work anymore, registered mail. Legally they can't call you at work anymore after that. So, the latest trend it to take every single debt to court. The courts are swamped and chances are the judge who hears your case knows less about debt law then you do. He will rubber stamp it as a judgment then it can never be taken off except by a higher judge or you paying them off. These days if you have a lot of debt and cannot pay it off file for bancruptcy protection immediately. If not they will get the judgment and it will hound you for life. Bush's new bancruptcy laws are 100% on their side and they are using it. I read recently on MSN money that there are 2 corporation in the top 200 who are now debt collectors. This is big business. Act now to file for protection before you get judgments. Of course this is a very important question so you must contact a few attorney's in your area. DO not take the word of some answer guy on here who sounds like he knows what he is talking about. He might, or he might just be watching old Ally McBeal reruns. So make the phone calls now while you still can. It will not just go away anymore so whatever someone went through even a year ago is not valid now. All of the rules have changed.
Good luck
2006-10-05 12:25:38 · answer #2 · answered by Yahoo 6 · 1⤊ 0⤋
Collectors can continue to try to collect outstanding debt until it's paid. Once paid, the negative payment history can remain on your credit report for up to 7-10 years, depending on how the bad debt was settled.
2006-10-05 12:05:02 · answer #3 · answered by Cool-K 3 · 0⤊ 0⤋
I think it's 5 years. but when the deadline is up, they can sell the debt to another collection company basicly keeping it going forever.
2006-10-05 11:59:44 · answer #4 · answered by webwriter 4 · 0⤊ 0⤋
Depends on where you live, here in Ontario
it's 6 years, not always applicable to student loans for some reason.
2006-10-05 12:10:58 · answer #5 · answered by Dee 2 · 0⤊ 0⤋
usually 7 years if you want a letter you can send bill collectors that will stop them in their tracks email me and I will give you some info you can use.
2006-10-05 12:08:17 · answer #6 · answered by zqx357 5 · 1⤊ 0⤋