What Are Time-Barred Debts?

According to federal law, debtors are relieved from legal action and threats from a creditor if the debt is too old. The statute of limitation protects debtors from the burden of creditors who after a certain period of time aggressively pursue their dues, sometimes to the detriment of the creditor who owes them. Time-barred debts are such debts that are too old to be collected through a court process.
  1. Time Limits and State Laws

    • Different states have different provisions for the collection of time-barred debts. But in most states a creditor may not be able to sue you for debt that has been owed for three to 10 years. This debt is considered too old to be pursued through suing the debtor. Confirm with the state attorney general's office the conditions under which a debt can be time-barred in your state.

    Protection from Creditors

    • According to the Fair Debt Collection Practices Act, debtors are protected from creditors who use unfair, deceptive and threatening methods of collecting debt. Creditors who have been sued by their debt collector, or have been threatened concerning a time-barred debt, can take legal action against the creditor or debt collector. You have a right to written proof of the debt that a collector claims you owe. You can also keep the creditors from contacting you by sending a letter asking it not to.

    Statute of Limitations

    • The statute of limitations is a federal provision protecting creditors from debt collectors pursuing time-barred debts through the courts. Although the statute of limitations is valuable, invoking it could restart the date for repaying a debt. Before invoking the statute of limitation in the courts, consult an attorney. You may also read and understand your state's statute of limitations provisions at the local law library, or by contacting your state consumer protection agency.

    Meeting Obligations

    • No federal or state law relieves you of your financial obligations to your creditors. If you owe a debt, you are required to take steps towards paying it. If a time-barred debt shows up on your credit report, it could jeopardize your credit scores and finances. If a debt has been delinquent for seven years and beyond, it may not appear on your credit report. But this will vary from state to state.

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