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How Long Can Debt Collectors Legally Pursue Old Debt?

by

JG Wentworth

July 11, 2024

8 min

Hourglass projecting a dollar sign as shadow.
For those struggling with debt, one of the most frequent and pressing questions is: How long can this legal cycle of debt pursuit actually go on? Is there any statute of limitations expiration date where you can finally be free of these old claims?  The frustrating reality is that for the most persistent debt collectors and creditors, unless specifically prohibited by state law, the threat of legal action and collections can loom indefinitely, even years down the road from the debt’s origination date.  However, that persistent pursuit comes with some crucial time-related caveats about the extent of legal enforcement mechanisms at their disposal. 

This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions. 

The key dates impacting how long debt can be pursued 

Understanding two pivotal milestone dates allows you to parse exactly how far debt collectors can continue to legally collect on old delinquencies: 

  • The Statute of limitations date: Also known as the “SOL,” this date marks the expiration deadline for when legal action can originally be taken against the delinquent debtor. The SOL time window is set at the state level and typically ranges from 3-10 years depending on the debt type. For example, if the SOL in your state for credit card debt is 6 years from first delinquency, then creditors cannot file suit against you for that unpaid credit card after that 6-year mark. 

 

  • The date of last payment/activity date: This is the instigating date creditors and collectors point to as restarting the entire statute of limitations countdown clock. Any payment, written acknowledgment of the debt, or promised action by the debtor to pay re-ups the pursuit window. So even if the original 6-year statute of limitations has expired, if you took any action short of bankruptcy discharge to recognize or pay something towards that debt, then legally that restarts the SOL pursuit window from the new last activity date. 

 

How these dates impact old debt collections 

In practice, here’s how the statute of limitations and re-aging dates affect a collector’s ability to legally pursue outstanding debts: 

  • Debt still within initial SOL: During this period, creditors and debt buyers maintain full legal rights to file lawsuits, garnish wages, place liens, and pursue other legal remedies to force collections on your unpaid debt. Of course, they must abide by all fair debt collection practices rules in their efforts. 

 

  • Debt past initial SOL, but re-aged: If the debt is past the original statute of limitations but you took any actions to re-age it with a new payment or acknowledgment, that essentially restarts the clock. Collectors can continue pursuing legal collections for that extended period. 

 

  • Debt past SOL and not re-aged: In this case, the creditor or collector cannot initiate any new court actions against you to force payment. However, they can continue sending letters, making calls, reporting delinquencies to credit bureaus, and attempting to persuade voluntary repayment through lawful means indefinitely. 

 

So, in the most hard-core scenarios, prepare for persistent debt collectors to legally chase you to the grave unless you take proactive action: 

  • Send a debt validation letter: Responding to initial contact in writing by requesting complete documentation proving the debt’s legitimacy and age can create a paper trail forcing collectors to cease if outside the statute window. 

 

  • Negotiate settled payoffs: You may be able to negotiate secure settlement discounts as low as 25% of balances if voluntary lump sums are paid in full on time-barred debts collectors are desperate to quickly recoup. 

 

  • File for bankruptcy protection: Only a Chapter 7 bankruptcy discharge can permanently halt and eliminate any further collection actions altogether on included unsecured debts. 

 

The general statute of limitations on debt may expire at different points, but like any horror movie villain, debts can keep rising from the grave again and again through re-aging payments or acknowledgments. Maintaining diligent records and being prepared to respond with validation challenges and settlement checks are crucial to permanently putting these zombie debts to rest. 

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Resolve your debt 

Of course, the most effective way to stop collectors from harassing you for the rest of your life is to actually resolve the debt. You know our famous jingle, so isn’t it time you got to know why JG Wentworth has become synonymous with debt relief and structured settlements? Give us a call to speak with one of our dedicated debt relief specialists. If you have $10,000 or more in unsecured debt, you may be eligible for our Debt Relief Program.* Some basic perks to consider: 

  • One monthly payment 
  • We negotiate on your behalf 
  • Average debt resolution in as little as 48-60 months 
  • 24/7 support 
  • We only get paid if we settle your debt 

 

If you think you qualify for our program, give us a call today so we can go over the best options for your specific financial needs. Why go it alone when you can have a dedicated team on your side, helping you reclaim your financial freedom and – as importantly – your peace of mind? 

 

SOURCES CITED 

Batdorf, E., “Statute Of Limitations On Debt Collection By State.” Forbes. October 16, 2022. 

*Program length varies depending on individual situation. Programs are between 24 and 60 months in length. Clients who are able to stay with the program and get all their debt settled realize approximate savings of 43% before our 25% program fee. This is a Debt resolution program provided by JGW Debt Settlement, LLC (“JGW” of “Us”)). JGW offers this program in the following states: AL, AK, AZ, AR, CA, CO, FL, ID, IN, IA, KY, LA, MD, MA, MI, MS, MO, MT, NE, NM, NV, NY, NC, OK, PA, SD, TN, TX, UT, VA, DC, and WI. If a consumer residing in CT, GA, HI, IL, KS, ME, NH, NJ, OH, RI, SC and VT contacts Us we may connect them with a law firm that provides debt resolution services in their state. JGW is licensed/registered to provide debt resolution services in states where licensing/registration is required. 

Debt resolution program results will vary by individual situation. As such, debt resolution services are not appropriate for everyone. Not all debts are eligible for enrollment. Not all individuals who enroll complete our program for various reasons, including their ability to save sufficient funds. Savings resulting from successful negotiations may result in tax consequences, please consult with a tax professional regarding these consequences. The use of the debt settlement services and the failure to make payments to creditors: (1) Will likely adversely affect your creditworthiness (credit rating/credit score) and make it harder to obtain credit; (2) May result in your being subject to collections or being sued by creditors or debt collectors; and (3) May increase the amount of money you owe due to the accrual of fees and interest by creditors or debt collectors. Failure to pay your monthly bills in a timely manner will result in increased balances and will harm your credit rating. Not all creditors will agree to reduce principal balance, and they may pursue collection, including lawsuits. JGW’s fees are calculated based on a percentage of the debt enrolled in the program. Read and understand the program agreement prior to enrollment. 

JG Wentworth does not pay or assume any debts or provide legal, financial, tax advice, or credit repair services. You should consult with independent professionals for such advice or services. Please consult with a bankruptcy attorney for information on bankruptcy. 

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