What are Time-Barred Debts?

Time-barred debts are those debts whose statute of limitations has expired. Time-barred debts can no longer be sued for in a court of law. If the statute of limitation of the debt has expired the creditor cannot file litigation against you in a court of law to recover the debt. The statute of limitation depends on the laws of the state. Different states may have different time limitation for different kinds of debt. Most of the limitation ranges from 3 to 6 years. You can confirm the length of the statute of limitation from you State Attorney General’s office.

Most of the debts are time barred debts which means that they have a statute of limitation applicable to them. When a statute of limitation has expired on a debt the creditor cannot sue you for the debt or threaten to sue you for recovery. This does not mean that it will not happen. If a creditor sues you for a debt that has expired, you can produce the necessary paperwork that proves that the debt too old to be collected to the court. Some sneaky creditors try to re-age the debt when reporting it to the credit bureau to make the debt younger than it really is so that they can try and sue for recovery for a longer period of time.

What a creditor is not prohibited to do is to collect the debt from you. The debtor is not prohibited by the state law to collect on the debt even when the statute of limitation has expired.

A time-barred debt can still appear on the credit report even in the statute of limitations expired. This is because most you can get stay on a credit report for a period of seven years from the date that the delinquency is first reported. If the statute of limitation is shorter than seven years and the debt would still be listed on your credit report even though it has expired.