Oak Park Real Estate & Estate Planning Blog

If you owe debts from many years ago, should you be planning to pay them off even if they have become time-barred? Just because a debt is time-barred does not mean that a debt collector cannot continue to call you in an effort to get you to make payments on the debt. Consumer bankruptcy may be an option. A recent article in U.S. News & World Report discusses old debt and the reasons that it can hurt you, even when it has become time-barred. To say more, we want to explain what it means when a debt becomes time-barred . Then we want to explain some of the reasons that you should deal with time-barred debt even if you cannot be sued. What is Time-Barred Debt in Illinois? Time-barred debt refers to debt for which the statute of limitations has run out and, accordingly, the creditor is no longer permitted by law to file a lawsuit against the debtor in order to be repaid. The statute of limitations varies greatly depending upon the type of civil lawsuit, and even debt collection la...

What is a time-barred debt and how can it help you, as a consumer, to know more about this topic? According to a recent article from the Federal Trade Commission (FTC), it is extremely important for consumers to know more about time-barred debts and actions a debt collector cannot take with regard to these types of debts. In short, time-barred debt is a debt that is “too old for a debt collector to sue you to make you pay.” Debts have a lifespan, also known as a statute of limitations. After that time period has run out, a collector cannot take action to recover that debt from you. Each statute of limitation varies depending on the state. In our state, debts related to written contracts have a 10-year statute of limitations under Illinois law ( 735 ILCS/5/13-206 ). However, credit card debt and other forms of debt may have a short, five-year statute of limitations. The FTC provides some important points for getting to know more about time-barred debt and your rights as a consum...