The statute of limitations on debt is handled on a state by state basis. The laws may vary, and some types of debt at the federal level never die, such as student loans and taxes. In Florida, there are several types of debt that are subject to the statute of limitations.
● Debts covered by written contracts or promissory notes are collectible for five years from the date of the last payment.
● Credit card debt, oral contracts, and open-ended accounts are collectible from four years from the date of the last payment.
● Judgments, such as those from small claims court, lawsuits, and fines, are collectible for twenty years from the date that it is issued.
● Judgment liens are good for ten years but may be renewed for another ten years.
Depending on your type of debt and when it was incurred, those debts may be considered uncollectible by law.
How debt collections work
As usual, there are exceptions. Let's take a moment to talk about debt collectors and how they operate. Collection agencies can be either one person with a desk, a phone, and a file of debtors or a massive phone room filled with hundreds of people calling debtors across the country. Some are contracted to companies big enough to outsource the handling of their delinquent accounts while others buy debts for pennies on the dollar and then try to collect on it. Debts are bundled like securities and sold, sometimes to more than one company, and then the phone starts ringing. The older the debt, the cheaper it is to buy - even when that debt is covered by the statute of limitations.
Lies and Dirty Tricks
"Can you pay something, anything, on this debt today?"
It sounds like a reasonable request.
What happens if you pay something on this debt, even if it falls outside the statute of limitations?
It brings the debt back to 'life.' Your old debt relief Florida is reanimated by a simple payment; the account becomes 'live,' and the owner of the debt can take every legal recourse available to collect it. They can take you to court, garnish your wages, even levy your bank account if they wish to take it that far. How can you stop them?
Know your rights.
Stop the Collectors Cold
The first thing you need to know is that all it takes to stop the calls and letters is, "Stop contacting me."
It's as simple as that, and if the collector is following the FDCPA laws - a federal-level law that governs debt collection business practices - they will stop calling. However, telling them to stop calling doesn't prevent them from taking actions to collect. It's very important to validate the debt, and then inform them that the credit card debt relief Florida falls outside the statute of limitations for Florida and is not legitimate.
When to Get Help
Some collectors count on ignorance of your rights to collect on time-barred debts. When they are threatening you, calling your family, your friends, or even your boss to bully you, its time to get expert hap in the form of an attorney experienced in rogue collectors. It's the law that they must communicate with your attorney and leave you alone, and an experienced attorney is your best way to stop the rogues cold.