In some cases, debts that have become time-barred may still be listed on your credit report. In others, debts that are no longer on your credit report may still be legally enforceable. If a collection agency sues you for a debt, it’s in your best interest to talk to an attorney who can help you weigh your options and defend you in court.

What happens if you make a payment arrangement with a debt collector?

Making a payment arrangement on a debt can can restart the statute of limitations on the debt, extending the amount of time the collector can sue you. Since you’re interested in paying off the debt, you may not mind that the statute of limitations is restarting on a debt.

When do you have to pay a collection agency?

Many people think they have no obligation to pay a third-party collection agency. After all, it’s not the original company you created the debt with. Once you default on the original credit agreement and the business sells the debt to a collection agency, that agency has the right to collect on that debt — assuming the collector operates legally.

Is there a statute of limitations on suing a debt collector?

If you make a payment on the debt, enter into a payment arrangement, or even acknowledge the debt is yours, you can restart the time period for a debt collector to sue you. Note that the statute of limitations on a debt is different from the credit reporting time limit.

What’s the best way to defend a debt collection lawsuit?

Some tips for doing so include: Don’t admit liability for the debt; force the creditor to prove the debt and your responsibility for it. File the Answer with the Clerk of Court. Ask for a stamped copy of the Answer from the Clerk of Court.

Is it legal to sue someone for debt?

When you face a lawsuit, it can feel like the law is stacked against you, but that’s not always the case. In fact, there’s a law in place to ensure that debt collection occurs in a (relatively) ethical fashion: the Fair Debt Collection Practices Act.