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9 Ways To Turn The Tables On Debt Collectors

Tuesday, March 26, 2013 - 11:33 AM
If your phone is ringing off the hook with calls from debt collectors, it’s not likely that you feel in control of the situation. But letting yourself feel scared or intimidated isn’t a good option, either. Go down that road and you may wind up making promises you can’t keep, or payments you can’t afford.

What if there was a way to turn the tables on debt collectors so that you are in control of the conversation, and can actually come up with a solution to put those debts behind you? You’ll find nine approaches to doing just that here.

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Under the "dump it in their lap" heading, the article refers briefly debt that is too old.  

It's important to remember that there is a statute of limitation on debt, and that it varies both by state and by type of debt.   Credit card debt, for example, is treated differently under the statute from debt incurred through oral agreements, and differently from debt incurred through auto loans and other installment-type arrangements.

A statute of limitations means that there is a limited amount of time in which a creditor can ask the court to force you to pay a debt.  Of course, just because the debt falls outside the statute of limitation does not take away your responsibility for the debt.  However, if a debt falls outside the statute of limitations, a creditor will not be able to get a judgement against you as long as you can prove that the debt has aged accordingly. 

Note that if you choose to challenge a debt based on this statute, it is your responsibility - not the court's - to show that the statute of limitation for that debt has passed.  You would need to be prepared to show a court proof of that timing.  

A final thing to remember:  if you make a payment on debt that is about to age out under the statute of limitations, you "restart the clock". 

The FTC (Federal Trade Commission) has more information here
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