When you are served papers for a lawsuit regarding a debt you forgot about, you may begin to panic. However, depending on the age of the debt, it may have passed the statute of limitations, meaning the collector cannot take legal action. As such, it’s imperative to understand the steps you should take if you are contacted over an owed debt. The following blog explores the statute of limitations regarding these matters and why it’s in your best interest to connect with a Los Angeles, California debt defense lawyer to explore your legal options regarding these matters.
What Is the Statute of Limitations Debt Collectors Must Adhere To?
In California, debt collectors only have a certain period of time to take action against someone who owes money. This is known as the statute of limitation. If legal action is not taken in this timeframe, the collector relinquishes their right to pursue justice. In California, the statute of limitations for debt collection is four years. This begins on the date of the first missed payment.
However, it’s critical to note that some actions can cause the clock on the statute of limitations to reset. For example, if you make a single payment towards a debt, even if the statute of limitations has expired, it can restart the clock, meaning the collector can take legal action against you.
Additionally, it’s important to understand that if a collector tries to sue you past the statute of limitations, they may be in violation of the Fair Debt Collection Practices Act (FDCPA). However, they may still attempt to collect the debt they are owed so long as they do not violate the law when doing so.
What Should I Do if a Collector Contacts Me About an Old Debt?
If a debt collector contacts you about a debt you owe or serves you with papers, it’s important to take the correct steps. The first thing you should do is request a debt validation notice. This provides you with important details regarding the debt, like who the original creditor was, when the last payment was made, and the balance.
It’s important to know that even if the debt is past the statute of limitations, you should not ignore a lawsuit filed against you. If you do not respond, the creditor can approach the court and request a default judgment. This essentially grants the plaintiff the damages they requested in the petition, meaning your wages could be garnished.
As such, you should connect with an experienced debt collection defense attorney to explore your legal options. You may find that trying to navigate a debt lawsuit on your own, even if the debt is passed the statute of limitations, can be incredibly difficult.
If you are facing a lawsuit over a debt that has expired, you’ll want to take the correct steps to protect yourself during these times. At Los Angeles Legal Solutions, we understand how difficult these matters can be. That’s why our firm will do everything possible to help ensure you aren’t held responsible for a debt you don’t legally owe. Connect with us today to learn how we can fight for you during these times.
