Is a 10 year old debt still be collected?

Can a 10-Year-Old Debt Still Be Collected?

The answer to this question is yes, a 10-year-old debt can still be collected. However, the ability of a creditor to collect on a debt depends on several factors, including the type of debt, the statute of limitations in the state where the debtor resides, and whether the creditor has taken any steps to collect on the debt within the limitations period.

Statute of Limitations

The statute of limitations is a law that sets a time limit on how long a creditor can sue to collect on a debt. The statute of limitations for debt collection varies from state to state, but it typically ranges from three to six years.

In most states, the statute of limitations begins to run from the date of the last payment made on the debt. However, there are some exceptions to this rule. For example, in some states, the statute of limitations may be tolled (paused) if the debtor makes a partial payment on the debt, acknowledges the debt in writing, or moves out of state.

Creditor Actions

Even if the statute of limitations has expired, a creditor may still be able to collect on a debt if they have taken certain actions to collect on the debt within the limitations period. For example, a creditor may have obtained a judgment against the debtor, which would allow them to collect on the debt through garnishment of wages or other means.

Types of Debt

The type of debt can also affect the ability of a creditor to collect on it. For example, debts that are secured by collateral, such as a mortgage or car loan, are generally easier for creditors to collect on than unsecured debts, such as credit card debt.

What to Do If You Are Contacted by a Creditor

If you are contacted by a creditor about a debt that you believe is too old to be collected, you should take the following steps:

• Request a written validation of the debt from the creditor. This will provide you with information about the debt, including the amount owed, the date of the last payment, and the statute of limitations for the debt.
• Review the validation of the debt carefully. If you believe that the debt is too old to be collected, you should contact an attorney to discuss your options.
• Do not make any payments on the debt until you have had a chance to review the validation of the debt and speak to an attorney.