Between the scam calls and debt collections, sometimes your phone can feel like your enemy. It is especially unnerving to receive collection calls on debts that you believed were written off ages ago. These collectors sometimes encourage you to make any payments you can on these old debts-even as low as a single $10 payment. Such a low payment may not seem like much to you especially if the balance is exponentially higher, but it is important to pause and consider the implications BEFORE making a payment or promising to pay.
Statute of Limitations for Debt in Florida
In Florida, the statute of limitation i.e. the time that a creditor has to sue you to collect on a debt is five (5) years for breach of contract. See Fla. Stat §95.11. Customarily, we count the five years from the date that the account was charged off. If the debt is past the statute of limitations, the creditor cannot sue you to collect on the debt unless you make a payment or promise to pay. By promising to make a payment or making this payment, even a nominal one, you reaffirm the debt and the statute of limitation may restart. This means that the creditor may now have an additional five (5) years to sue you for the debt. This can result in some unfortunate outcomes.
Recently, a creditor filed a proof of claim in one of our bankruptcy cases seeking the payment of about $1,100. The debt was however charged off in 2015, and our client was never sued for this debt. Because the debt was past the statute of limitation, we moved to have the debt excluded. Through researching the debt, we discovered that the creditor had convinced our client to make a $20 payment a few months before he decided to file for bankruptcy. This $20 payment caused our client to now be responsible for the repayment of a $1,100 debt.
Hopefully, our client’s mistake can save someone else from making a similar one. Before making a payment or a promise to pay on a debt that is more than four (4) or five (5) years old on which you have not been sued, it is best to discuss this with an experienced attorney.
Talk to the Skilled Debt Defense Attorneys in Fort Lauderdale at Loan Lawyers Today
Call us now for your 100% free consultation with our Fort Lauderdale debt defense lawyer. We will go through the details of your specific situation, help craft a plan that works best for you, and put you in the best position to try to obtain relief from these debts. Call us now at 1-888-FIGHT-13.
Loan Lawyers has helped over 7,000 South Florida homeowners and consumers with their debt problems, we have saved over 3,000 homes from foreclosure, eliminated more than 100 million dollars in mortgage principal and consumer debt, and recovered over 25 million dollars on behalf of our clients due to bank, loan servicer, and debt collector violations. Give us a call today.
- About the Author
- Latest Posts
Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
