Do I Need to Worry About Old Debt?

Are you being contacted by debt collectors about debt you incurred many years ago or debts you do not even remember incurring? Or are you concerned about facing legal action over an older debt you have never repaid? These are issues that worry many debtors, especially when they are facing financial problems and are dealing with economic stressors. If you do have old debt, it is important to understand what a creditor or debt collector can do and what they cannot do. In addition, it is important to understand your options for dealing with old debt. Our Oak Park consumer protection attorneys can provide you with more information about older debt and can assist you with your options for resolving debt through bankruptcy or holding a debt collector accountable for deceptive practices that are prohibited under the Fair Debt Collection Practices Act (FDCPA).

Debt Might Not Be Yours

When you receive calls or text messages from debt collectors about old debt that you do not even remember incurring, it is possible that the debt is not yours. You should request detailed information about the debt collector about the details of the debt to confirm whether or not you are being contacted mistakenly.

Debt Has a Statute of Limitations

If you are being contacted about old debt that you do owe, it is possible that the creditor or debt collector cannot actually take any legal action against you to collect the debt because the statute of limitations has run out. Depending upon the type of debt, the statute of limitations is likely four years, five years, or 10 years. If you want to know with certainty about the statute of limitations on your debt, you should ask a consumer protection attorney who can evaluate the particular debt and provide you with more information.

If the statute of limitations has run out, you cannot be sued for the debt, and the debt collector cannot garnish your wages or take other related actions to collect.

Debt Collectors and Creditors Can Trick You Into Reviving Old Debt

Be careful not to agree to pay some portion of your old debt, or to make a payment. If you do so, you could “revive” your old debt even if the statute of limitations has run out. In so doing, you could restart the statute of limitations.

Bankruptcy May Be Able to Eradicate Your Old Debt

Even if the statute of limitations has not run out on your debt, you could be eligible to have your debt discharged by filing for consumer bankruptcy. Once debts are discharged in bankruptcy, a creditor or debt collector cannot take any actions to collect.

Contact an Oak Park Consumer Protection Lawyer

If you owe old debt, or if you are being contacted about old debt, it is important to know that you have rights and you have options. Depending upon the specific circumstances of your case, you could be eligible to file a claim under the FDCPA if you are being harassed by a debt collector about old debt. You may be relieved to find out that, based on the date that you originally incurred the debt, the debt collector or creditor cannot take legal action against you to collect it because the statute of limitations has run out. Even if the statute of limitations has not yet run out, you could have your debt discharged by filing for bankruptcy. One of our Oak Park bankruptcy lawyers can say more. Contact the Emerson Law Firm for more information.



See Related Blog Posts:

Can I Be Forced to File for Bankruptcy?

Absolute Priority Rule: What to Know

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