Are you dealing with the stress of debt? Maybe you’ve been contacted by creditors for an old debt? Have you checked the statute of limitations for your debt? You may be contacted for a debt that is past the timeframe to collect. Here’s what you need to know:
So, What is a Statute of Limitations?
A statute of limitation is a deadline to file a lawsuit. It is applied to agreements like written contracts, credit card accounts, promissory notes (like a mortgage loan). For examples, click here. Also, these time-frames will vary based on the state in which you live. So, be sure to check with your attorney for more information.
But, What Does This Mean For My Debt?
In California, if a written contract is breached, you have 4 years from the original date. Also, if it is a verbal contract, the statute of limitations will expire in 2 years. For judgement, you have 10 years. Remember, the statute of limitations will begin again if you make a payment on an outstanding debt. So, this will leave the door open for creditors to contact you for payment.
Sample Letter For You
Your City, State Zip Code
Collector’s City, State Zip
Account # XXX-XXXX-XXXX (or name of account or debt)
Dear (Collector’s name or company name):
This letter is in response to your letter dated month xx-xx, 2022 (copy enclosed) or phone call on xx-xx-2022, concerning the collection of the above referenced (account number or date).
I do not believe I owe this debt and therefore dispute this account. I am aware of my rights under the Fair Debt Collection Practices Ace (FDCPA) and California state laws. Therefore, I have verified through my state’s Attorney General that the Statute of Limitations for enforcing this type of debt through the courts in California has expired. If you intend to take this issue to court, I intend to inform the court of my dispute of this debt and that the Statute of Limitations has expired.
This letter is a formal notification that I consider this matter closed and demand that neither you nor anyone associated with your company contact me except to inform me that collection efforts have been terminated or that you or the creditor are taking the specific actions allowed by the FDCPA and my state laws.
Please be advised that I consider any contact not in compliance with the Fair Debt Collection Practices Act to be a serious violation of the law. I will immediately report any violations to the proper authorities and take whatever legal action is necessary to stop this contact.
(sign above printed name)
Your printed name
Stop! Things to Remember Before You Send the Letter:
- First, do not acknowledge the debt.
- Second, send the letter via certified mail with return receipt requested.
- Do not make any promises to pay anything.
- Use credit report or recent statements to get the correct account information.
- Finally, keep a copy of the letter for your own records.
Need More Information?
Keep in mind, there is a chance of having problems with old debts. So, you need to review your options. Speaking with an experienced bankruptcy attorney will help you better understand the statutes of limitations. Also, you will be able to discuss your best options for handling your debt.
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. First, before we work together, we would like you to get to know us. We want you to be sure that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.