Legal Question in Credit and Debt Law in California

Re: bad debt

If you have not made any payments on the account at issue for 5 years, the statute of limitations has expired on the creditor's claim. Thus, you are not legally responsible for repayment at this time. Your best option here to end the harassment is to retain affordable legal counsel to draft a cease and desist letter to the creditor harassing you and your boss at work. Contact us directly for such prompt, effective help.

Re: bad debt

The statute of limitations is 4 years from the date you made the last transaction or last promised you would pay the debt, whichever is later. This means that the creditor has 4 years to file a lawsuit. If a lawsuit has already been filed, then there is no limitations period. If you are beyond the statute, although you do not have to legally pay back the debt,it is still legal for the creditor to attempt to collect the debt by calling you and sending you correspondence. However, the law says that once the creditor is advised you are represented by counsel, the creditor cannot contact you any more. As far as your credit report goes, it can continue to be published as in collection or as a charge-off. But, should you file or threaten to file a lawsuit, the creditor will usually agree to remove the claim from your credit report.