If you’ve been struggling with old credit card debt, you may have heard about the statute of limitations on debt. This critical legal concept determines how long creditors have to sue you for unpaid debt.
In New York and New Jersey, the rules surrounding the statute of limitations can dramatically impact your financial future. Here’s what you need to know—and why understanding your rights is so important.
What Is the Statute of Limitations on Credit Card Debt?
The statute of limitations on debt sets a deadline for creditors to initiate legal action to recover unpaid amounts. Once this period expires, creditors lose the right to sue you. However, the debt doesn’t vanish; you still owe it, but you’re protected from lawsuits if the statute of limitations has passed.
In New York, recent changes have shortened the statute of limitations on most debts, including credit card debt, to three years. This update, effective April 2022, replaced the previous six-year limit, offering more relief to consumers.
In New Jersey, the statute of limitations for credit card debt is six years, giving creditors a longer window to file a lawsuit.
What Triggers the Statute of Limitations?
The clock on the statute of limitations typically starts ticking from the date of your last payment or acknowledgment of the debt. However, making a payment or even verbally acknowledging the debt can restart the clock. This is why you must tread carefully when dealing with debt collectors.
Debt collectors often employ aggressive tactics, including phone calls, letters, and threats of legal action. They may even attempt to sue you after the statute of limitations has expired, hoping you won’t know your rights. That’s why consulting a knowledgeable credit attorney is crucial to protect yourself.
What Happens If You’re Sued for Old Debt?
If you’re sued for debt that has passed the statute of limitations, you have a strong legal defense. However, you must raise this defense in court—it won’t happen automatically. Ignoring a lawsuit can result in a default judgment, giving creditors the right to garnish your wages or freeze your bank account.
How Can We Help?
At our law office, we specialize in defending consumers against debt collection lawsuits.
Our experienced debt attorneys offer a free consultation to assess your case and determine whether the statute of limitations has expired. We’ll guide you through the process, ensuring your rights are protected and putting you on the path to financial stability.
We also take many cases on a contingency basis, meaning you only pay if we win your case.*
Call us today for your debt attorney free consultation and take the first step toward resolving your credit card debt
Sources:
- Upsolve: Statute of Limitations on Debt in NY
- InCharge: Statute of Limitations on Credit Card Debt
- Attorney New York: Debt Relief
- NY Attorney General Press Release
- Wagner Gaske & Associates
You may also like:
- Defending Debt Buyer Claims
- Contingency Fee Lawyers New York: Legal Help Without Upfront Costs
- How to Get a Credit Card Lawsuit Dismissed
* While we handle many claims on a contingency basis, no guarantee is made of a particular result. We evaluate each claim individually, and arrangements may vary – these will be set forth in a written agreement. We are happy to discuss our procedures and welcome any questions you may have.
Credit Card Defense 