Whether you can still collect an old debt from someone that owes you money depends on the statute of limitations in your state. The statute of limitations is the time period in which a creditor can sue a debtor to collect a debt. Once the statute of limitations has expired, the creditor can no longer sue the debtor to collect the debt.
The statute of limitations for debt collection varies by state and type of debt. For example, the statute of limitations for credit card debt is typically four years in most states. This means that if you owe someone money for a credit card, they can only sue you to collect the debt within four years of the date the debt was due. If they do not sue you within four years, they can no longer sue you to collect the debt.
If you are unsure of the statute of limitations in your state, you can contact your state’s attorney general’s office or a reputable debt collection service such as New World Collections. They can provide you with more information about the statute of limitations in your state.
Even if the statute of limitations has expired, you may still be able to collect the debt from the debtor. However, you will need to do so through non-legal means. This may include sending the debtor a letter demanding payment or trying to collect the debt through a debt collection agency.
If you are unable to collect the debt from the debtor, you may want to consider writing off the debt as a loss. This will allow you to stop trying to collect the debt and move on.
Here are some additional tips for collecting an old debt:
- Be polite and professional. Even if the debtor owes you money, it is important to be polite and professional when trying to collect the debt. This will make it more likely that the debtor will be willing to work with you.
- Be persistent. If the debtor does not respond to your initial attempts to collect the debt, you may need to be persistent. This may mean sending the debtor multiple letters or calling them multiple times.
- Be prepared to compromise. In some cases, you may need to be prepared to compromise with the debtor. This may mean accepting less money than you are owed or agreeing to a payment plan.
If you are unable to collect the debt on your own, you may want to consider hiring a lawyer. A lawyer can help you understand your rights and options and can represent you in court if necessary.
For further questions and help with collecting your outstanding debts, contact New World Collections and we will partner with you in resolving these issues.