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Ellen
Ellen, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy Lawyer. Experienced.
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Bankruptcy question Is there a statute of limitations for

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Bankruptcy question

Is there a statute of limitations for collecting debt? I have debt that will be off of my credit report in 2013. I cannot afford to pay it off - it is over $150,000. I have not made any payments that would start the 7 years over again. Should I wait it out or go BK? I still get collection notices but ignore them.

What is the best plan of action?

Respectfully,

Michael

WebLaw :

*Due to rules of your state bar or mine, nothing herein is intended as legal advice, only intended as general information to better help yourself.*

WebLaw :

Welcome to JustAnswer,

So sorry to hear of this dilemma. If my answer is not clear to you or does not fully answer your question, please ask me for clarification by using the reply button.

WebLaw :

The statute of limitations in California for the collection of most debts is 4 years. Provided you have not made payments within the four-year period, it would appear that the statute of limitations has run. The statute of limitations is not related to your credit report and the information on your credit report will not affect the collectibility of the debt.

WebLaw :


Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Customer:

If it is four years why do they keep trying to collect and send me notices?

Customer:

so it sounds like I should wait it out and just let the information expire on the credit report in 2013. Is that what you are saying?

WebLaw :

The expiration of the statute of limitations does not prevent creditor from attempting to collect. This is a common misconception. The creditor may continue to attempt collection however if the creditor files suit after the expiration of the statute of limitations, you may have the action dismissed

WebLaw :

If the statute of limitations has run on your debt, it would appear to be in your best interest to not file bankruptcy but rather simply let the information expire on your credit report

WebLaw :

I think this is what you are asking.
Please use the REPLY button if you have any questions concerning my answer. Otherwise please click ACCEPT so that I am paid by the site for answering.

Best wishes for a Happy and Healthy New Year!

Customer:

Thanks. that is what I needed to know. Now I understand. thanks I will pay for this advice. It's been bother me a long time.

WebLaw :

I wish you the best of luck

Ellen and other Bankruptcy Law Specialists are ready to help you

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