Receiving a notice in the mail about a debt you forgot about can be anxiety-inducing. However, this stress can elevate if you are served papers over this debt. When you are the defendant in a lawsuit surrounding money owed, understanding the most common defenses is critical. One thing you may be able to rely on is the statute of limitations for debt collection in California. If you’ve been served over an old debt, you’ll want to keep reading to learn more about your rights and discover how a San Diego County debt collection harassment lawyer can help you protect yourself.
Is There a Statute of Limitations for Debt in California?
In California, a debt collector will only have four years to pursue a lawsuit against someone over a debt. This timeframe will begin from the date of the first missed payment. However, it is critical to note that some things, like agreeing to a repayment plan or making a payment to the account will restart the statute of limitations.
Generally, when you miss a payment, a creditor can begin contacting you to pursue the funds they are owed. If you still do not respond, the debt will often be sent to collections. Essentially, this means the original creditor has sent your debt to a third party to pursue getting the money back.
In many instances, debtors fail to respond to efforts made to collect on debts, which can result in a default judgment. This allows the court to garnish your wages to repay the debt.
What Happens if a Collector Contacts Me After the Statute Has Expired?
If a debt collector contacts you or files a lawsuit against you over a debt that has passed the statute of limitations in California, understanding what steps you should take is critical. As noted, certain actions can restart the clock on the statute of limitations, meaning you could end up legally responsible for a debt that had no legal standing.
The first thing you should do is ask for a debt validation letter. This will inform you when the original debt was taken out, the original creditor, and what is owed. You can then respond to the lawsuit by filing within 30 days. This allows you to assert your defense.
However, this process can be overwhelming. In many instances, a debt collector can still try to collect on an expired debt, so long as they don’t violate the Fair Debt Collection Practices Act (FDCPA) in the process. This act dictates acceptable behaviors and methods for third-party collectors. Trying to sue a debtor for an expired debt can help you defend yourself and may lead you to recover damages under the FDCPA as collectors are prohibited from taking legal action against debts passed the statute of limitations. As such, it’s in your best interest to connect with an experienced attorney to explore your legal options.
When you are sued, Barthel Legal can help. We understand how overwhelming these matters can be, which is why we are dedicated to fighting for you. Reach out to our team to discuss your circumstances with a member of our firm.
