Do You Still Owe a Debt After the Statute of Limitations Expires?

So, you have been in debt for a few years. You are thinking that pretty soon the debt collector can no longer collect the debt. You are thinking that the statute of limitations is close. Think again.
Matt Berkus is a Colorado licensed bankruptcy and debt relief attorney with 18 years of experience. I offer free phone consultations to residents of Colorado for the purpose of bankruptcy. Click on my websites for additional information and for the phone number to call and schedule.
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#bankruptcy #debtcollection #debtlawsuit #statuteoflimitations #timebarreddebt

[@Ukvideoclips]

You do not need to pay a debt if it is statutory barred. If the debt collector wants to take you to court, let them and defend it.

[@bankruptcybailout]

Yes, that summarizes the key point of the video.

[@sirperduwyn]

@@bankruptcybailoutwhat happens if you were never served to go to court and the claimant won a judgment against you, and you receive a letter after the fact. Mine was over ten years old. Past the Statute of limitations And protected under the Fair Debt Collection Practice act. Even the amount was 7 times what would’ve been owed. Never received anything other than a threat to sue me (but after the statute of limitations protected me) I even received this letter 2 weeks after the judgement so I have little time to appeal. Not even sure how to appeal

[@charlottetucker3858]

Same never summoned to court so I need legal advice

[@charlottetucker3858]

I'm from ms

[@tweetiebird]

@@sirperduwyn They would not have received a judgment if the statue expired no court is going to do that especially in your absence. If you could not be served, they can ask the court to waive it if they meet the requirements of the courts exceptions. Hire an attorney to review it!

[@jbsteven]

I had a WF card in 2002 and cant remeber if I paid it off or not. I stopped using the card back then. I just got served for that debt. If I had a balance, it is over 20 years old. Go figure...Now I have to hire an attorney and spend money on a debt that may not even exist. I have no way to prove it had a zero balance or not. Even if i did have a balance, the SOL is 4 years in Texas.

[@earlbridges162]

Correct me if I’m wrong, but I believe a creditor can get a judgment even if the SOL has expired if the defendant/debtor doesn’t raise it as an affirmative defense. That’s why it’s important to answer the lawsuit and not allow the plaintiff/creditor to get a default judgment!

[@bankruptcybailout]

Theoertically yes. SOL is treated as an affirmative defense in many states. However, most attorenys (even collection attorneys) are wary to bring a claim that is outside the SOL as that will subject them to both court and state bar discpline for knowlingly bringing such a claim.

[@tweetiebird]

@@bankruptcybailout Most of this type would probably fall into private debts

[@twinsof1965]

So what if both debt attorney and our attorney failed to explain the SOL and imho feel that our own lawyer represented us very poorly. We feel like they were representing the debt lawyer more than they were us. Yet they charged us a pretty high retainer fee. We feel they should have never charged us anything. So now that the SOL has expired and after listening to several Texas lawyers talk about this subject, we were able to tell our lawyer that the SOL has expired and both the debt Lawyer and our Lawyer knew all along, yet they both harassed us and we felt betrayed, bullied and on the defensive. 😪

[@georgevanvalkenburg2560]

THANK YOU! EXCELLENT PRESENTATION AND MOST IMPORTANT VALUABLE, CORRET INFORMATION. GREAT ADVISE. . . .

[@bankruptcybailout]

Glad it was helpful!

[@marymcmaster9189]

I knew one couple who filed bankruptcy and lost their house.

[@bankruptcybailout]

But do you know why? Losing one's primary residence in bankruptcy is extremely rare. Few, if any, people who file bankruptcy do so without knowing they will lose their house. When it happens, it is usually part of the plan (or they filed for bankruptcy without an attorney or were poorly advised).

[@tweetiebird]

Are you sure they weren't losing the house to foreclosure or forfeiture and then filing bankruptcy to protect themselves from the creditor still suing them ?

[@GradyMorgan-i8e]

Where can find it in writing that Mississippi a debt collector only has three year debt or expired?

[@bankruptcybailout]

Any basic search can get you that information. However, the statute of limitations is only a restriction on filing a lawsuit to collect. It usually doesn't act as a bar to trying to collect the debt other ways.

[@tweetiebird]

@@bankruptcybailout This is very important because many debtors think they are off the hook once the statute of limitations expires! You can have a collection on your credit report for many years interfering with buying a home, getting a job, or car insurance rating increasing your premiums, credit cards, and interest rates. You either have to file bankruptcy which may not be practical as that is also a ding on your credit rating but you won't owe the money anymore and the "collection" has to be removed from your credit report. It also costs to file bankruptcy, so you have to weigh the pros and cons of whether to pay the debt sometimes you can negotiate a settlement for a lesser amount too if they think it is at risk of bankruptcy!

[@kief4diamonds]

I got 6 months left. 7 years of waiting.

[@deathuponusalll]

3 months left I assume? How’s the attrition fight going?

[@rigojr91]

So does this mean you can dispute to have it removed from your credit after 4 years?

[@bankruptcybailout]

No. Credit reporting has its own law about how long accounts can be reported. Credit reporting is federal law under FCRA. Statute of limitations is state law. They are different things.

[@cybernutjr2]

But even if the statue has expired. In my case. Its beem 20yrs. Looks like the debt was sold to another third party company. They are not trying to collect it but it shows up on my credit report as of recent.

[@bankruptcybailout]

You have to take up the credit reporting issue with the credit reporting agencies regarding a dispute. Since we don't know the type of debt or whether there is already a judgment, there is no way to say your options.

[@cybernutjr2]

@@bankruptcybailout I already investigated. It is an old phone bill from Sprint 20 years ago when I was a irresponsible 20 yr old kid. I even call Sprint now T-Mobile. They have nothing on record for my social security number. I checked with the courts already. There is no judgement against me. And I even file a dispute with Experian. They are currently investigating.

[@FlorecitaHappy]

I received a letter from a collection agency asking me to arrange for payment and my debit is from 2014 I was trying to see what I can do and your video came as a suggestion.

[@bankruptcybailout]

Hopefully the video helped. You will want to discuss your specific situation with an attorney in your state to determine your options. Statute of limitations laws and how they work vary from state to state.

[@robertwhite9898]

@@bankruptcybailout exactly. Yes every state is different when comes to the statute of limitations. Ohio is (6) max . My recommendation is check with the laws in your state. & you can Google it . All statute of limitations is a time frame for a debt collection agency to take action. Once it’s outside the time frame there’s not much they can do. Most. & formost get a copy of your credit report or go to credit karma . & look & see when it was charged off . That is all proof you need in the invent should a debit collector try to take action. Also if you get any kind of communication from a junk debt collector act. On it make sure you have all the information & facts. First ! Look at the charge off date first ! Then go to the statute of limitations for your state . If it’s outside the statute of limitations then they are basically bared . If a collection agency tries anything then they violated the fair debt collection practices.

[@robertwhite9898]

Check with the laws in your state first !

[@tweetiebird]

Like this video showed, only 3 states dismiss collections all together once the statue has expired.

[@pollywilliams6623]

My mother is 90 and a collection bought the debt from 35 years Ago!!! Never sent a letter or called but put collection on her credit.

[@bankruptcybailout]

You can dispute it with the credit reporting agency. However, in the grand scheme of things, does a 90 year old really care about credit (if we are honest).

[@tweetiebird]

@@bankruptcybailout The heirs may care ! No doubt the collection company knows there's assets or they wouldn't have taken it on.

[@tanyaclayton5240]

Help! I received a call the other day from a collector for Capital One saying I owed $1400 on a card that I have no recollection of. I have good credit and very little debt - I pay attention to my credit. But get this - it’s from 17 years ago!!! But 17 years?? When the rep told me the address connected to the card, it hit me that the most likely scenario is my ex husband falsified information to obtain it. He was good at that type of thing. So the rep is saying that the contract ‘I’ signed stated something like they could come after it after all these years due to the fact that it was never placed on my credit. Yes, they are saying that payments were made and then stopped, but they never put it on my credit?? I’m so confused - I agreed to settle for $500 but it just doesn’t feel right. Oh and not just are they trying to come t, they are talking suing!

[@bankruptcybailout]

That is a lot to unpack here. The real question is how much time do you really want to invest in dealing with this thing. Maybe a $500 settlement is worth it to avoid the hassle. Or, you can play a game of a chicken, tell them to pound sand (that it isn't your debt), and see if they actually sue.

[@tweetiebird]

That could have been a scam IMO! No legitimate credit card company doesn't report regularly to the credit bureaus each month or quarterly reflecting your payment history, that's BS. You should have asked for proof you applied for a credit card and authorized others to use it too and the billing statements of the charges. As far as the address goes an online search can provide prior address information. You were entitled to receive proof it was your debt by law. The statement they say you signed reeks of a scam; sorry but I think you got coned out of 500.00

[@kalsimo8986]

I am a Colorado resident. I just received a letter from fedelity legal group “notification of lawsuit & civil complaint “ demanding the payment of a payday loan back in 2010 or 2011. I just checked my credit report. Nothing regarding this debt in this report. It’s been more than 10 years passed on this debt of $200. They’re threatening to sue me. Can they sue me even this debt is outside SOL? Thank you very much Sir

[@bankruptcybailout]

They shouldn't. But they could actually file a complaint. The statute of limitations is an affirmative defense to a lawsuit, not a bar to filing a lawsuit. The threat to sue you (assuming the debt really is beyond the statute of limitations, which is 6 years in Colorado) may violate Fair Debt Collection Practices Act (FDCPA). It wouldn't hurt to consult with an attorney in Colorado that handles FDCPA claims. (I don't do those cases).

[@kalsimo8986]

@@bankruptcybailout Thank you so much Sir! I really appreciate the feedback. Some attorneys use that threatening language to get debtors to pay. 😀

[@itzrlymeman]

You kinda butchered when the time starts ticking, respectfully. So does it start when the day after the payment is missed or the next billing cycle? Thank you

[@bankruptcybailout]

The day after the payment is missed, plus any grace period. It is at that point the borrower is in default.

[@itzrlymeman]

@@bankruptcybailout thank you 🙏🏽. Appreciate the answer

[@LuvinOurLife]

How about a SBA Loan, I just received a letter after 15 years of not paying. It says it will go to possible US treasury collections.I have not heard from them until now.

[@bankruptcybailout]

For SBA loans, the statute of limitations applies only to the time frame to sue you. However, the government has other collection options that don't require a lawsuit and are NOT subject to any statute of limitations. SBA loans can stil pursue administrative enforcement such as offset and administrative wage garnishment. Offset is where the government intercepts payments from the government to you (e.g. tax refunds). The government can do administrative wage garnshments. It doesn't need a court order.

[@LuvinOurLife]

@@bankruptcybailout thank you for your response. Does it matter the amount owed? It says amount due 24450.28

[@bankruptcybailout]

@@LuvinOurLife As far as I know, the amount owed is irrelevant.

[@tweetiebird]

@@LuvinOurLife unpaid school loans will follow you forever even into retirement so contact and work out a payment plan because it continues to accrue interest too.

[@robertwhite9898]

I’m in the state of Ohio & the statue of limitations is (6) yrs .

[@longtea1]

DO you hava a list of SOL on each state? ARKANSAS?

[@bankruptcybailout]

I do not, but that is an easy Goggle or AI search.

[@randallmarsh3087]

I have a collection agency wanting to take me to court on a credit card debt from 2008. The credit card company never filed for a judgement between then and now... Can this collection agency continue to pursue me?

[@bankruptcybailout]

The statute of limitations clock starts when you stop paying. In many states, the statute of limitations is an affirmative defense to a lawsuit. That means that the SOL is not self-executing. If a collector sues you and the debt is outside the SOL, you have to raise that issue in your response. However, most attorneys won't file a case when they "know" it is outside the SOL. If the debt is outside the SOL, most states still permit a collection agency to contact the debtor to request payment, but the collector cannot threaten to sue you. If they threaten to sue you for such a debt, that violates the Fair Debt Collection Practices Act.

[@randallmarsh3087]

​@@bankruptcybailout I truly appreciate your response. This collection agency contacted me today wanting to know when they could come by to serve me a summons for County court. They want me to arrange a time tomorrow when they can actually serve me while I am at home. Thank you once again Mr. Berkus!

[@bankruptcybailout]

You should probably reach out to a local attorney in you area and they can tell you if the collection is real or a scam and advise accordingly. However, it is common practice for a process server to try to contact the defendant to arrange service of process. Avoiding service of process doesn't prevent the lawsuit.

[@tweetiebird]

@@bankruptcybailout It is also illegal for the Credit bureau to make false statements to get you to pay. Also, be alert that it's not a scam!

[@tweetiebird]

@@randallmarsh3087 That's unethical practice, no one makes an appointment to serve you, just another scare tactic! They know they missed the window to sue, but they can still haunt you on your credit report if legitimate. The law says they must provide proof of the debt to you,

[@dontbea9202]

Hey I’m thinking about buying a moto recycle. The guy said that it does not owe back fees dude to it passing the statue of limitations. How does that work or does it even work for vehicles ?

[@bankruptcybailout]

The answer would depend on if the vehicle is "titled" and who has the title and what are the back fees you reference.

[@tweetiebird]

Careful their not trying to sell you something that can be repossessed!

[@locorippervang9560]

i been sued 14 years ago never went to court now a junk debt collector is tryin to sue me will staute of limitations get my case dismiss if i show up sir

[@bankruptcybailout]

You cannot be sued twice for the same debt. If that is really what is happening (I doubt it), then you should go. If they are simply renewing the prior judgment, then there is no defense to that.

[@locorippervang9560]

@@bankruptcybailout i hink you are right sir do u suggest i file chapter 7

[@bankruptcybailout]

Bankruptcy is something to consider. Whether you should file bankruptcy is a discussion you need to have with a bankruptcy attorney in your state. Consultations with bankruptcy attorneys are usually free.

[@aopabailey]

Unfortunately, there is something to worry about period if you own a home. Most of us in this country's home values have skyrocketed meaning way over the Homestead exemption and you'd have to sell your home bankruptcy, is not. An answer

[@bankruptcybailout]

That is why there is chapter 13 bankruptcy. However, most states have increased their homestead exemptions in the past few years. I wonder what you think the alternative is. If you cannot pay the debt, then the creditor can sue, get a jugment, and then file a lien against the house.

[@happyfamilyvlogs446]

If creditors can put lien on home for time barred debt????

[@bankruptcybailout]

If the creditor obtained a judgment before the statute of limitation expired, then the answer is yes.

[@daizzzyp1993]

My mom has been having debt since early 2000s. Can she still fix her credit ?? It’s bad

[@tweetiebird]

Absolutely, for one stop using credit. Then start paying extra on the highest interest credit items and start with the ones with the smallest balance and once paid off, take that payment money from that one and apply it to the next one in line and so on. Schedule your payments with your bank online service so it's always paid timely too Sometimes it might be wise to refinance your house to wipe out the debt or get an equity loan if her credit isn't bad and pay it all off, it will mean one payment that is less than all combined but at much lower interest and easier to pay off or just increase your home payment slightly, but make sure what the interest on your mortgage is first compared to current interest rates as that is usually dealing with hundreds of thousands. Preferably a refinance is to lower your interest rate by at least 1% and not add a huge amount for origination fees on top of the current mortgage. A home equity loan can be a better option it's a second usually short term so bigger payment and the home is collateral.

[@tonymac2055]

Got a creditor calling for tuition of 3k from 2016. Never was on my credit report and this is the first time me hearing about this . What should I do

[@bankruptcybailout]

You need to find out more information. Were you attending a school in 2016? Did you withdraw or leave with an open balance? However, you probably want to follow the process of requesting Debt Validation. Search for FDCPA Debt Validation letter sample and send the collector the letter.

[@tonymac2055]

@@bankruptcybailout I did attend a school in that year. No loans. Maybe open balance. But never was on my credit report.... statue of limitations is 6 years in the state on nj

[@bankruptcybailout]

Whether a debt is or is not on your credit report is irrelevant. Credit reporting is voluntary, not mandatory. I can't speak specifically to NJ law, but as the video points out, in most states a statute of limitations is only a bar to suing you to collect the debt. They can still contact you and request payment. Also, the school can withhold your transcript if you should ever need it.

[@JimmyJaxJellyStax]

Statue of limitations for debt in Texas was reduced to 4 years after 2019 - yeee haw! But seriously, live within means and learn about building asset growth instead of debt growth - it is a carefully gradually honed mindset for managing money every single day. Once there is a true wealth of growing assets, a fraction of debt used among them ironically becomes purely conducting business and planning for taxes.

[@tweetiebird]

You are not released from debt after 4 years, just can't sue you and get a judgment which unless there are assets and income you can go after, it's not worth the paper it's written on and then they could turn around and file bankruptcy it happened to me. Employers look at your credit report and a bankruptcy will show up for 7 years too. Making arrangements to pay it off and honoring your commitment is the only way to get truly rid of the problem without staining your history to honor your obligations. Once you pay off the debt, they have to remove the collection and no sign is left on your report, only if there were original late payments to the creditor.

[@larryjanson4011]

but if you are poor and retired. they can not touch your bank accounts, as long as there is less than two ss payouts amounts in said accounts no matter the source. say you get paid $1,00USD a month from ss. you can not have over$2,000 USD in all accounts. debt collectors can not go after your house or car if there is a loan on them. but can put a lean on your home. as its “value” goes up. a car does not. if you are rich, your lawyer can protect you. .

[@bankruptcybailout]

Okay, but who really wants to live like that? Do you really want to live in constant collection.

[@WvvwvvwwVvwwvwv]

If you get sued for an old debt, show up to court and collect your $1,000.00 for wasting your time.

[@bankruptcybailout]

That usually doesn't happen.

[@MrRepsMrReps]

I could care less if I did owe the fact that they cannot get a judgment is😅

[@GamerzZone0212]

Even if your are pass the statue of limitations if you can afford pay the debt you owe.