If you have old, unpaid debts, you may be safe from a lawsuit to collect the debt. This is because creditors have a limited number of years to sue you for an unpaid debt. This time period -- called the statute of limitations -- varies greatly from state to state and for different kinds of debts. Under certain circumstances the statute of limitations can be restarted, so be very careful when talking to debt collectors about old debts. If you say the wrong thing, you could extend the time the creditor has to sue you for the debt.
If you receive a collection lawsuit, the company suing you may not be the creditor from which you incurred the debt. If this is the case, it is likely that a debt buyer is suing you. Fortunately, there are defenses to debt buyer collection lawsuits that may help you defend against the lawsuit. What Is
If you are in default on a credit card account, the credit card company can try to get a credit card debt judgment against you by filing a lawsuit. If the credit card company gets a judgment, it can use all sorts of collection methods against you to get paid.
Question How long does a creditor have to collect on a judgment against me? Answer That depends on the laws of your state, and the method that the creditor uses to try and collect on that judgment. Usually, judgments are valid for several years before they expire or “lapse.” In some states, a judgment