Legal Question in Credit and Debt Law in California
Bankruptcy Statute of Limitations
my daughter ran up large credit card bills when she was 18 - 21 years old. She is now 26 and has been getting threatening legal notices. Isn't there a statue of limitations on debt that if not collected within 4 years it must be written off by the credit card companies?
3 Answers from Attorneys
Re: Bankruptcy Statute of Limitations
Yes, the statute of limitations is four years, but the collection agencies buy this "zombie debt" for a few cents on the dollar, then they will try to scare you into paying or promising a payment, either of which will reset the clock. Or they will sue, hoping you won't defend the lawsuit properly.
Re: Bankruptcy Statute of Limitations
Yes, so long as there was no agreement to make payments. A letter from an attorney will probably stop the harrassment.
Re: Bankruptcy Statute of Limitations
There is nomally a 4 year statute of limitations from the last payment made (if any). We would have to review any collection letters she received to determine if there was a violation against the Fair Debt Collection Act.
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