Is there a time limit on credit card debt?

All consumer debts, from credit card balances to medical bills, have limits on the number of years creditors have a legal right to sue you for payment. In some states, the statute of limitations for credit card debt is three years. In others, it’s up to 10. The rules can vary greatly state to state.

How do I know if my debt is statute barred?

Your debt could be statute barred if, during the time limit:

you (or if it’s a joint debt, anyone you owe the money with), haven’t made any payments towards the debt.
you, or someone representing you, haven’t written to the creditor saying the debt’s yours.
the creditor hasn’t gone to court for the debt.

How do you determine statute of limitations on debt?

The statute of limitations clock starts ticking on the date of last activity on your account. Typically this is the date you last made payment, but it can also be the date you last used the account, made a promise to pay, entered a payment agreement, or even acknowledged liability for the debt.

How does a debt collector prove they own the debt?

If the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt. Often such proof will be a bill of sale, an “assignment”, or a receipt between the last creditor holding the debt and the entity suing you.

Do I have to pay a debt collector that bought my debt?

Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws.

What happens if my debt is sold to a collection agencies?

If the original creditor, such as a credit card issuer or mortgage lender, is handling the debt collection, then your payments will go to the creditor. But if the original creditor hires a debt collector or sells your debt to a debt collector, you’ll send payments to the debt collector.