How long can debt collection agencies chase you?

How Long Can Debt Collection Agencies Chase You?

The duration for which debt collection agencies can pursue unpaid debts varies significantly depending on the state in which you reside. State laws establish the statute of limitations for debt collection, which dictates the timeframe within which collectors can legally attempt to collect outstanding balances.

Statute of Limitations

The statute of limitations for debt collection refers to the period after which a creditor or debt collector can no longer file a lawsuit against you for unpaid debts. These time limits are determined by state laws and can range from three to twenty years, based on the type of debt.

• Written Contracts: Debts arising from written contracts, such as promissory notes or loan agreements, typically have longer statutes of limitations. They can range from six to twenty years, depending on the state.
• Unwritten Contracts: Debts based on unwritten agreements, such as verbal contracts or open accounts, generally have shorter statutes of limitations. They can range from three to six years.
• Credit Card Debt: The statute of limitations for credit card debt varies from state to state, but it typically falls within the range of three to six years.

Impact on Debt Collection

The statute of limitations has a significant impact on the ability of debt collectors to pursue outstanding balances. Once the statute of limitations expires, collectors lose the legal right to sue you for the debt. However, they can still contact you and attempt to collect the debt, but they cannot legally pursue legal action against you.

Exceptions

In some cases, exceptions to the statute of limitations may apply. For example:

• Acknowledgment of Debt: If you acknowledge the debt in writing, such as by making a partial payment or promising to pay, the statute of limitations may be reset.
• Fraudulent Concealment: If the creditor intentionally concealed the existence of the debt, the statute of limitations may be extended.
• Bankruptcy: If you file for bankruptcy, the statute of limitations for certain debts may be paused or discharged.

Recommendations

If you are being pursued by debt collectors, it is important to understand the statute of limitations in your state. If the statute of limitations has expired, you can legally refuse to pay the debt. However, it is still recommended to consult with an attorney to ensure that your rights are protected.