Legal Question in Credit and Debt Law in Massachusetts

In a strictly technical sense, a debt never becomes "uncollectable" or void. Bankruptcy and statues of limitations, for example, are what we call "affirmative defenses" to collection. In other words, if a creditor is trying to collect a debt but the debt has been discharged in bankruptcy or a statute of limitations applies (usually six years for a contract debt such as a credit card), you have to tell the judge in the collection action that the "affirmative defense" applies, otherwise the judge would probably let the creditor collect. Also, if the debt was discharged in bankruptcy or the creditor made a misrepresentation in connection with collecting the debt, you might have what is called a "counterclaim" - that is, a reason to sue the debt collector or creditor.

The "statute of limitations" on a consumer debt will run ROUGHLY six years after you breached your agreement to repay. You breach the agreement when you become obligated to pay, and fail to do so. Whatever you do, do NOT agree to a payoff plan. You will wind up paying them interest only for the rest of your life, and not getting anywhere.

If you would like some assistance in understanding your obligations with respect to this debt, and putting together a plan on settlement once and for all, please give us a call.