Can a Debt Collector File a Lawsuit Against Me for Old Debt?

You might have debt that is several years old or even older, and you might have forgotten that you even owe the debt. Or, perhaps you have been worrying about the debt for years and concerned that you could face consequences if you do not pay. Either way, it is critical to understand when a consumer debt collector can—and cannot—file a lawsuit against you for old debt. Generally speaking, debts have a statute of limitations according to Illinois law, and once that statute of limitations runs out, the debtor collector cannot file a lawsuit against you. However, there are other reasons that a debt collector cannot seek a judgment against you by filing a claim, and there are also exceptions to the statute of limitations rule concerning time-barred debt.

We want to give you a few questions to consider when it comes to determining whether a debt collector can sue you to obtain unpaid debt. Ultimately, you should seek advice from our Oak Park consumer protection lawyers who can assess the particular facts of your case and can help you to understand your rights as a consumer in Illinois.

What is the Statute of Limitations?

The first question you will want to ask yourself when considering if a debt collector can sue you to collect old debt is, what is the statute of limitations on the debt I owe? In general, unwritten agreements and open-ended agreements (including most credit cards) have a five-year statute of limitations in Illinois, while written agreements have a 10-year statute of limitations. Accordingly, once that time window has closed, the debt collector cannot lawfully sue you to collect your debt because the debt is now known as being “time-barred.”

Have You Filed for Consumer Bankruptcy?

Even if the statute of limitations has not run out, a debt collector cannot sue you if you have filed for Chapter 7 bankruptcy or Chapter 13 bankruptcy. The “automatic stay” that comes with a consumer bankruptcy filing stops creditors and debt collectors from filing lawsuits or moving forward with existing claims.

Did You Agree to Take on the Debt Again?

Either explicitly or implicitly, did you do anything that would indicate you have agreed to repay any of the debt or to reaffirm what you owe? When the statute of limitations has run, to reiterate, a debt collector cannot file a lawsuit against you because that debt is now time-barred debt. However, the debt collector can continue to make calls and can try to get you to pay the debt. If you agree to pay any of the remaining debt, or if you make any type of payment, you could restart the statute of limitations and the debt collector could once again be allowed to move forward with a lawsuit against you.

While you still owe time-barred debt, you cannot face a lawsuit and judgment that would require you to repay the money unless you say or do something that will reset the statute of limitations.

Contact an Oak Park Consumer Protection Attorney

If you have any questions or concerns about how this works, you should seek advice from an Oak Park consumer protection lawyer as soon as you can. Contact the Emerson Law Firm today to speak with one of our consumer advocates about handling debt and your options under Illinois law.


See Related Blog Posts:

Can I Modify a Chapter 13 Bankruptcy Repayment Plan?

What is a Hardship Discharge in Chapter 13 Bankruptcy?

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