Each state has time limits under the Statute of Limitations that govern when a creditor/lender can sue a borrower for a debt. Some consumers mistakingly believe that this automatically means that the creditor can no longer seek to collect the debt. It does not mean that. It means that a creditor cannot obtain a judgment against the borrower to repay the debt. A borrower may advise the creditor that the statute of limitations has expired and they no longer wish to be contacted about the debt.
If, however, the borrower makes a payment after the statute of limitations has expired, they will have restarted the clock or the time limit under the statute. So, if the statute of limitations has expired for an unpaid debt that you do not intend to pay, then you should advise the creditor that the statute of limitations has expired and that you no longer wish to be contacted. This does not mean that the unpaid debt will not remain as a bad debt on your credit report.
We are by no means suggesting that you should not be responsible for your debts. However, you must understand your rights if you are unable to pay.
For more information, contact us.