Basic Information About Debt Collection

by | Sep 30, 2015 | Bankruptcy Law

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Once a debt’s statute of limitations has expired, a creditor can no longer pursue a debtor; however, some exceptions are applicable. Some creditors try to trap a debtor under one of these limited exceptions in order to collect on a debt. Read further to get Information about debt collection and how a lawyer can protect a debtor’s legal rights.

The Statute of Limitations
With a statute of limitations, a person only has a limited time to file a lawsuit; for instance, in many cases, one cannot sue for something that took place ten years ago. Debt collection statutes of limitations vary by jurisdiction, and the time frame can range from three to ten years, and once it expires, a creditor can no longer legally seek payment from a debtor.

Zombie Debts
Even in cases where collections are barred by the statute of limitations, some debt collectors use dishonest zombie debt collection tactics where they hire collection agencies to try to force debtors to pay. These aggressive methods cover discharged debts, and even those that do not belong to a particular client.

Unethical Collection Tactics
When a debtor is found, a zombie debt collector will try to restart the statute of limitations in order to sue. According to Information about debt collection, the statute of limitations will reset itself if any portion of the debt is paid. Collectors try to get people to start repaying by:
• Promising to leave them alone if they pay
• Not including the debt on a credit report
• Threatening litigation
• Harassing customers
• Pretending they’re lawyers who want to sue

What a Client Should Do If They Are Pursued by a Zombie Debt Collector
A person should not agree to pay a portion of such a debt, because partial payment will restart the statute of limitations, so it is essential that the person should call a debt collection attorney from for more information. These lawyers will help clients send cease and desist letters to the collection agency to keep them from harassing and cheating clients; moreover, the lawyer can take legal action if a creditor keeps harassing the client.

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