How to Fight Back Against Time-Barred Debt Lawsuits 

If you have old debts that you haven’t paid off, you may be wondering if they can still come back to haunt you. The answer is: it depends. Depending on the type of debt and the state where you live, there is a certain time limit for creditors or debt collectors to sue you for unpaid debts. This time limit is called the statute of limitations, and it varies from state to state and from debt to debt.

The statute of limitations usually starts when you miss a payment on a debt, and it can range from three to 15 years, depending on the state and the type of debt. After the statute of limitations expires, the debt becomes time-barred, which means that the creditor or debt collector can no longer sue you to collect it. However, this does not mean that the debt goes away or that it stops affecting your credit score. It just means that you have a legal defense against a lawsuit. 

How to Defend Yourself Against a Time-Barred Debt Lawsuit

If a creditor or debt collector tries to sue you for a time-barred debt, you can prevent them from obtaining a judgment against you by raising the statute of limitations as an affirmative defense in court. You will need to provide evidence that the debt is older than the statute of limitations, such as your payment history, your credit report, or any communication you had with the creditor or debt collector about the debt. If you can prove that the debt is time-barred, the court will dismiss the case. 

How to Avoid Restarting or Extending the Statute of Limitations

There are some situations where the statute of limitations can be restarted or extended, such as: 

• Making a partial payment on the debt 
• Acknowledging the debt in writing 
• Entering a payment plan or a settlement agreement 
• Moving to a state with a longer statute of limitations 
• Being sued in a state with a longer statute of limitations 
• Having a judgment entered against you (which may have its own statute of limitations) 

How to Protect Your Rights Under the FDCPA

It is important to be careful about how you handle old debts, and to avoid doing anything that could revive or extend the statute of limitations. You should also be aware of your rights under the Fair Debt Collection Practices Act (FDCPA), which is a federal law that prohibits debt collectors from using abusive, deceptive, or unfair practices to collect debts. For example, debt collectors cannot: 

• Contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., or at your workplace if they know your employer disapproves 
• Contact you after you have asked them to stop, either verbally or in writing 
• Contact your friends, family, or coworkers, except to get your contact information 
• Threaten you with violence, arrest, or legal action that they cannot or do not intend to take 
• Lie to you about the amount, status, or ownership of the debt 
• Add fees or interest that are not authorized by the original agreement or by law 
• Use profane or abusive language 
• Report false information to credit bureaus 

If you believe that a debt collector has violated the FDCPA, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or your state attorney general. You can also sue the debt collector for damages and attorney fees within one year of the violation. 

In conclusion

If you have old debts that are past the statute of limitations, you may be able to avoid paying them or being sued for them, as long as you know your rights and act accordingly. However, this does not mean that you should ignore your debts or your credit report, as they can still affect your financial situation and your future borrowing ability. The best way to deal with your debts is to pay them off as soon as possible, or to negotiate a settlement or a payment plan that you can afford. If you need help with managing your debts, you can contact a reputable credit counseling agency or a debt relief company for advice and assistance. 

FAQ’s

Q: What is a time-barred debt?

A: A time-barred debt is an old debt that has exceeded the statute of limitations, which is the time limit for creditors or debt collectors to sue you for collection. The statute of limitations varies from state to state and from debt to debt, and it usually starts when you miss a payment on a debt

Q: Can I be sued for a time-barred debt?

A: No, you cannot be sued for a time-barred debt. It is illegal for debt collectors to sue you or threaten to sue you for a debt that is past the statute of limitations If you are sued for a time-barred debt, you can raise the statute of limitations as a defense in court and provide evidence that the debt is older than the time limit

Q: Can I still be contacted for a time-barred debt?

A: Yes, you can still be contacted for a time-barred debt. Creditors and debt collectors can still call you, send you letters, emails, or text messages, or contact you by private message on social media to collect a time-barred debt, as long as they follow the rules of the Fair Debt Collection Practices Act (FDCPA). However, you can ask them to stop contacting you by sending them a written request

Q: How can I avoid restarting or extending the statute of limitations?

A: There are some actions that can restart or extend the statute of limitations, such as making a partial payment on the debt, acknowledging the debt in writing, entering a payment plan or a settlement agreement, moving to a state with a longer statute of limitations, being sued in a state with a longer statute of limitations, or having a judgment entered against you. To avoid this, you should be careful about how you handle old debts, and avoid doing anything that could revive or extend the time limit

Source(s) 

1. Fair Debt Collection Practices Act | Federal Trade Commission 

2. Debt Collection FAQs | Consumer Advice 

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