Old Debts and Collection Lawsuits

If you've started receiving collection calls over debts so old that you no longer remember them, you may have just stepped into the insidious world of the junk debt buyer. Junk debt buyers purchase your old debts from collection agencies that have given up on ever collecting from you and written the debts off as "worthless." Usually, these debts are seven to ten years old or even older.

Each state has a preset time period during which any creditor may file a lawsuit in the hopes of recovering an unpaid debt. This is known as the state's statute of limitations for debt collection. If the creditor opts not to file a lawsuit during this period of time, the debt itself becomes time-barred. One of the key tactics junk debt buyers use when pursuing these debts is to file lawsuits anyway.

Filing a lawsuit anyway can have several different results. If you receive a summons notifying you of the impending court case, you may appear in court and inform the judge that the debt is, in fact, time-barred. The judge will then ask the plaintiff for proof that the debt is enforceable. When the junk debt buyer cannot provide that proof, the judge will dismiss the case.

Unfortunately, if you either do not receive a summons or do not respond to the summons that you do receive, the judge in the case has no way of knowing that the debt is not legally enforceable. This will result in the plaintiff winning its case and obtaining a legal judgment against you. The legal judgment, in turn, gives the junk debt buyer the right to request a wage garnishment, bank account garnishment and, in some states, even a property lien against your home. Judgments are far more difficult to fight than original lawsuits, so take care to always respond to any summons that you receive.

Ciele Edwards has over ten years experience helping consumers deal with debt collectors and protect their money. For more information on collection agencies, collectionagencydebt.blogspot.com/2010/07/difference-between-junk-debt-buyers-and.html junk debt buyers and how to protect yourself, visit collectionagencydebt.blogspot.com Collection Agency Debt