When Are My Debts No Longer Collectible?

When Are My Debts No Longer Collectible?Laws regarding time-barred debts, a debt that is past its legal time window of collection, vary from state to state. This “time window” in which collectors must initiate a lawsuit is formally known as the Statute of Limitations. The Statute of Limitations applies to all types of lawsuits, not just those between debtors and creditors. Anytime someone wants to file a claim, whether it’s regarding a car accident, personal injury, workers’ compensation, product liability, etc. there is an amount of time from the event in which someone must make the “first move” in filing a case. In Florida, the time allowance for creditors to open a case against a debtor for medical debt, automobile repossession, and written contracts/promissory notes (this includes credit card agreements) is 5 years. In the instance that a creditor opens a case after this 5-year window, the debtor may have rights to fight it and free themselves of the claims and its resulting nuisances (phone calls, wage garnishments, etc.) and possibly get the case dismissed.

The exact date for the statute of limitations is determined by the last time of activity on the debt. Generally, this refers to the date when the last payment was made. For example, if you made your last payment on your credit card on January 1, 2020 and have been unable to make payments since, the credit card company (or it’s assignee) has until January 1, 2025 to file a lawsuit against you. If you are questioning the age of your debt, the legitimacy of the creditors coming after you, need legal advice, or simply a voice of reason, the team at Jay Weller Legal Group is here to help you. We offer free consultations where you will get to meet one on one with a bankruptcy attorney, free of cost, and discuss the best possible solution for your current situation.

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