A Look at What You Should Do If a Debt Collector Has Sued You

Your creditor has many options when you default on a loan. They will try to get you to pay, sell the debt to a collection company, or just write it down. They also, of course, have the option of suing you for the default amount plus extra fees. But, how long will they go after you for that money, or the collection agency that collects your debt? Learn more at:https://www.brightbankruptcy.com/what-you-should-do-if-a-debt-collector-has-sued-you/

Collection departments want fresh debt. They would have a very high chance of asking you for payment if they can receive debt that has been defaulted on within the last 180 days. When they buy the debt, they get the most recent phone numbers, address, your social security number, and any other information the lender feels is important. They can also obtain original signatures or documents proving that you have agreed to the terms of service and are legally responsible for the debt.

They start pursuing it immediately when the collector gets a hold of your file. You’ll get emails, phone calls, and a nagging feeling of someone wanting the contents of your wallet any time your phone rings. The fresher the debt, the harder it is for them to work, for they know where to find you.

The debt begins to become regarded as “stale” after a period of time, normally 9 months to a year. This debt is much more difficult to pick up on. Someone who defaulted on a loan or credit card is likely to have defaulted on others and may have faced eviction or left to try to find jobs. Their phone numbers do not work, the address is invalid, and to find them, the debt collector needs to work harder. When bought, this debt has a much lower return than fresh debt does. Because of that, it is considerably less costly for a collection agency to purchase than fresh debt.

The older debt is now out-of-statute. Each state has laws from a legal point of view on how long an individual can be sued by a collection agency to try to recover debt. The collector will no longer sue you for it if the debt reaches a certain amount of months or years after the original default. That is why they always sue in the few months before debt goes out-of-statute. It will not matter how long you wait until the suit is filed. After filing, there is no time limit. They have limited time prior to filing, however.