LOWE'S FINANCIAL

Consumers have a great advantage when it comes to dealing with debt collection efforts when the debt in question has passed the statute of limitations. Unfortunately, not everyone knows about the implications of time-barred debt, and that leads many people to be frightened into paying debt when they really don't have to. Because every state's statute of limitations on debt is different, you'll have to look up the limits on your particular debt. If you find that it's time-barred, here are some tips for how you should deal with debt collectors. The agent relies upon you to collect his debt, because it is your fears, your fantasies, your misinformation and your restricted access to the truth that empowers him or her. Each of your weaknesses becomes a weapon to be used against you.

Know the Risks

Just because a debt is past the statute of limitations, that doesn't mean that debt collectors can't attempt to collect it, but it does mean that their means of doing so are drastically limited. For instance, they can't take someone to court who owes a time-barred debt - in fact, they can no longer even threaten you with the possibility. In addition, their ability to garnish your wages is gone. But the advantage can quickly be transferred to the debt collector if you make one wrong move, and those trained in the art will do everything they can to make you slip up. For instance, if you pay even a small amount on the debt, the debt collector will have the right to "re-age" the debt, and the time on the statute of limitations will start all over again. This means that even if the debt is seven years old, and the statute of limitations is five years, they can start the clock over and have the right to sue for five more years. Some states allow debt collectors the right to re-age a debt if the consumer even acknowledges that they owe it.