A company may try to collect valid debt indefinitely. However, the lengths a company can go to collect the debt are governed by state laws and the federal Fair Debt Collection Practices Act.
Specifics
In most states, there is a statute of limitations on individual debt. Debt beyond that point is not erased and companies can attempt to collect until the account is in good standing. However, a company cannot sue you in court beyond that time, from three to 10 years, depending on the state.
Exceptions
Regardless of the statute of limitations, a company cannot sue your or attempt to collect on debt discharged in bankruptcy.
Considerations
According to the Better Business Bureau, child support orders, federal student loans, fines and taxes do not have a statute of limitations. Additionally, delinquent accounts may stay on your credit report for up to seven years regardless of the statute of limitations.
Warning
If a company sues you for debt past the statute of limitations, do not ignore the summons. Submit proof to the court that the debt is beyond the time frame for a lawsuit.
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