Every state has laws governing the time in which a person or entity can file suit to collect a debt. Generally, a creditor or debt collector gives up their right to file suit to collect a debt after four years after the debt is written off. In the case of open book accounts, its from the date of the last entry on the statement of accounts.
The purpose of the statutes of limitation is to bring some measure of fairness to the debtor so that he/she (1) will not have to worry about being sued for the rest of their lives; and (2) so that the debtor can properly defend himself with fresh evidence and witnesses, if any.
This doesn’t mean that a creditor cannot file suit against someone after the statute of limitations has expired; however, if a creditor does file suit, the debtor can ask the judge to dismiss the suit on the grounds that the statute of limitations has expired.
If you are a debt buying, you better pay attention to the dates on each account and see when the statute of limitation runs out. If you are a debtor, if the statute of limitations is about to run on your account, don’t be surprised if you suddenly hear from a collection agency threatening to sue if you don’t pay immediately.
If they do contact you, tell them that the statute of limitation has run out and to not contact you again. If they continue, send them a certified letter with return receipt requested, telling them not to contact you again. Whatever you do, never admit that you owe the debt or agree to pay the debt or send them any money. Confirming the debt, agreeing to pay the debt or sending them money can extend the statute of limitation and allow them to come after you.
