Legal Question in Credit and Debt Law in Connecticut

Re: Collections Debt

Collection agencies are notorious for attempting to squeeze money out of a consumer that doesn't exist. If the debt is older than 4 years and you haven't paid, then the statute of limitation has run and they can't collect. If your last payment was within 4 years, you can either hold your breath and do nothing (not very wise), pay what you can (despite their insistence that you pay more), file bankruptcy, try to negotiate directly with the creditor for lower payments, answer the lawsuit, etc. If they file a lawsuit, you should not let it slide, though. They could get a default judgment, then levy your wages and/or bank account, and put a lien on your real property.

Re: Collections Debt

How old is the account? If your last payment, or the date the last payment was due, is within 4 years, send them what you can. They may still sue you, but at least you will be paying the debt down.

If the last payment was due more than 4 years ago, or your last payment was more than 4 years old, the statute of limitations may have expired. Then don't pay them anything and see what they do.

If you are sued, you should talk to an attorney immediately.