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What is the statute of limitations to file a lawsuit on an

unpaid debt for leased equipment...
What is the statute of limitations to file a lawsuit on an unpaid debt for leased equipment in New York State? I leased equipment, my business went down the drain, the last payment I made on the equipment was on Dec. 11, 2006 and now I have a collections agent from a MA law firm calling me about making payments when I can't even afford to buy toothpaste.
He told me the lease was sold from one leasing company to another (didn't tell me the date of sale) and now the MA law firm represents this leasing company that is looking to get their money. Can leases be sold? I thought only debts could be sold.
He told me not to even think about enforcing a statute of limitations bc this is a lease and the statue of limitations renews itself with every new billing statement sent to the debtor. Is this true????
Please help
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Answered in 5 minutes by:
5/2/2013
JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11,396
Experience: Experienced in business formation and licensing issues
Verified

BizAttorney :

Hello, I am a professional here to assist you. I appreciate your use of this service.

Customer:

hello

BizAttorney :

Such debts can be sold. I will provide the applicable statute of limitation.

BizAttorney :

The statute of limitation is based on the written contract here. The lease is a form of written contract.

BizAttorney :

The limitation is six years from the date the payments became delinquent.

BizAttorney :

The lease is a debt and can be sold.

Customer:

Does the six year rule apply in NY for this lease?

BizAttorney :

Yes.

BizAttorney :

The statute does not renew unless you make a payment.

Customer:

so can i politely tell this person to leave me alone

BizAttorney :

You have no obligation to ever speak with a collection agency. The best practice is to write the collection agency and demand that only communication via mail be used.

BizAttorney :

The collection is obligated to comply.

BizAttorney :

Once the statute of limitation passes, a civil suit to enforce the repayment obligation in court will not stand.

BizAttorney :

Any questions?

Customer:

so they are too late?

BizAttorney :

If six years passes from the date a debt based on a contract becomes delinquent, the creditor is too late to file a civil suit.

BizAttorney :

It appears you are stating six years has passed here.

Customer:

the last payment I made was on December 11, 2006

BizAttorney :

Typically, the debt would be delinquent within the following month.

Customer:

and now I can tell this person of the statue of limitations and how it applies to this lease, correct

Customer:

can they report me to the credit bureau?

BizAttorney :

Typically, the best way to deal with a debt collector is to cease phone contact.

Customer:

would i have to wait 7 years from the date the lease was FIRST sold?

BizAttorney :

Sending a letter advising that only communications via mail should be utilized will end phone calls.

BizAttorney :

Selling a debt does not restart the statute of limitations.

BizAttorney :

Paying on the debt or signing a repayment plan will restart the statute of limitaions.

BizAttorney :

limitations.

Customer:

but does selling a debt give me a start date to have the debt excluded from a credit reporting agency?

BizAttorney :

The creditor knows if the statute of limitations has passed although they may be using deceit to lure payment.

Customer:

but does selling a debt give me a start date to have the debt excluded from a credit reporting agency?--->i am trying to figure out when the 7 years will take effect to remove the negative reporting

BizAttorney :

You can contest the information as inaccurate if it is reported to a credit bureau as a new debt when it was sold. It should not be added anew to the credit report due to a sale, but sometimes unethical collection agencies will do so. In that scenario, the information must be contested as inaccurate with the credit reporting bureaus.

BizAttorney :

The seven years should run from when the information was originally added to the report

BizAttorney :

Any questions?

BizAttorney :

Before you go....

Customer:

ok, i will now inform this company in writing of the statue and the law...which statute is this about the lease?

BizAttorney :

Please take a moment to leave a positive rating. I rely on excellent ratings and optional bonuses to provide information at this site. I appreciate the positive rating in advance.

BizAttorney :

There is no obligation to inform the collection agency. They should know. The consumer only needs to contact the agency in writing and advise that phone communications must cease.

BizAttorney :

The collection agency knows the statute of limitations has passed.

Customer:

can you please provide me with the statutues bc i want to give it to the atty office this collector is calling me from

BizAttorney :

I can do so, but continued communication will not help you. It typically leads to further attempts to influence a consumer to pay a debt even if they know the debt cannot be enforced in court. N.Y. Civ. Prac. L. & R. §213 is the law.

BizAttorney :

I can provide a link as well.

Customer:

this collections agent is calling me from a legit law firm in MA (i called to verify the attys on the letterhead) i called the attorney and sumsumer assistnace program in MA

Customer:

thank you, XXXXX XXXXX the help

BizAttorney :

http://codes.lp.findlaw.com/nycode/CVP/2/213

BizAttorney :

Understand, that while a law firm may be used in the collection action you should not assume that supplying this statute will stop their phone calls. To do that you must write the collection agency a certified letter demanding the calls stop.

Customer:

I will tell them that the most I could pay on this debt is $100 (in order to prevent me from being reported to the credit bureau) to satisfy it and have it considered paid in full

Customer:

i will see if it works because i owe $38,000

BizAttorney :

Understand that if you make a payment the statute of limitation will start over and this can be reported anew on your credit.

BizAttorney :

If the statute of limitations has passed, there would be no way currently to force you to pay.

BizAttorney :

Offering to make a payment on an uncollectable debt is not generally a good course of action.

BizAttorney :

Any other questions?

BizAttorney :

Before you go, please take a moment to leave a positive rating. I would greatly appreciate it.

BizAttorney :

Thank you for using this service and have a good day.

JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11,396
Experience: Experienced in business formation and licensing issues
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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11,396
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