In some cases, you may find that you owe a debt from years ago. Sometimes, however, you may still be legally required to pay this debt, with the threat of a lawsuit hanging over your head if you do not. However, in other cases, you may either no longer be responsible for the debt, or the debt collector can longer sue for collection.
Debt Contract
Whether you are liable to pay a debt or not, even a debt seven years old, is partly based on the terms of the contract you when you incurred the debt. In the case of a rental car, a car company would likely have had you sign a contract agreeing to rent a vehicle for a set rate for a set period of time.
Debt Collection
Once a debt has been agreed to, you are legally obligated to pay what you owe. In many cases, for older debts that have not been collected, the creditor will sell the debt to a debt collection company. The company that buys the debt has the same rights to collect on the debt as the previous creditor. While there is no statute of limitations on debt collection, there is statute of limitations on suing over the debt.
Statute of Limitations
The exact amount of time that a debt collector has to sue for payment of a debt depends on the laws of the state where the debt was taken out. In some cases, seven years exceeds the statute of limitations, while in other cases it does not. If a debt collector cannot receive a legal judgment certifying you are owed the debt, your options for collecting are limited.
Considerations
If a creditor indicates that a bill is settled, then she is no longer allowed to pursue collection of a debt. In the case of a rental car company, if the company agrees to accept payment for the rental car and indicates that the debt has been settled, this cannot be changed seven years later. However, if the debt was never settled, the bill may still be valid.
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