Legal Question in Business Law in California

Re: service bill

Well, yes. However, you probably have a defense to any suit brought to collect the bill - namely, one or another of the many statutes of limitations that bar suits to enforce stale claims and rights of various kinds.

The statute of limitations for suits on a contract in writing is four years; for oral contracts, it is two years. In each case the time is measured from the time of default, not the date the contract was made, and certain circumstances stall the running of the time, such as your being in hiding.

There are many exceptions and technical interpretations involved in applying the statutes of limitations, so if the amount is large, you should consult an attorney.

The statute of limitations is a so-called "affirmative defense," and its availability does not prevent your being sued nor the creditor getting a judgment - you have to assert it as a defense; and it does not abolish the debt, it just makes it uncollectible if the defense is properly asserted. You can still be reported to a credit bureau, I think - although maybe the credit-rating agencies have a policy not to list and use "negatives" that are very stale (I don't know).

There is one other little catch here. If the business has sent you a statement every month, or at least occasionally - throughout the seven-year period - and you did not protest the amount - it may be able to sue you for an "account stated" which is a theory that a new obligation to pay arises each time you are billed and do not pay or object. Your silent acquiescence in the billing (or any statement such as "I'll pay when I can") creates a new obligation to pay and thus the statute of limitations time clock keeps getting set back to zero.

Re: service bill

They can bill, but they can't successfully sue after 4 years. If you think you owe the money, consider negotiating a payment. If you don't think you owe the money, tell them to 'take a hike'.