Lenders and Debt Collectors only have six years to take you to court on a debt. When they take you to court after those 6 years are up, you may be able to sue them for up to $1,000.
If you're being sued in court by a debt collector, the first thing you should look at is if the debt is even yours. If you put a check mark beside that item, the second thing you should look at is when you made your last payment. If your last payment was made over 6 years before the debt collector filed their lawsuit, a court can't make you pay a dime.
This is called the "Statute of Limitations. Think, a law (statute) that limits how long a person has to file a lawsuit (limitation).
In Indiana, debt collectors and lenders only have 6 years to take you to court to collect on a debt (the law is stated in §34-11-2-7). If they haven't filed a lawsuit against you by this date they're out of luck. But debt collectors often file these cases anyway because they get away with it. Don't let them!
If you receive a lawsuit in the mail, read the complaint and think back to the last time you made a payment. Go online to your bank records and find the last time a payment was made. Look through the court documents and see when they say a payment was made. And just because the debt collector says they know you made a payment lately, don't take their word for it. Demand they show you documentation!
If a debt collector has filed after the Statute of Limitations, not only could your case be dismissed, but the debt collector may have to pay you up to $1,000 for violating the Fair Debt Collection Practices Act.
If you find that a debt collector has filed a case against you after the 6 year Statute of Limitations, call us and let us help. We can help review your case, your records, and may even be able to take care of it all for free.
Call the Hagan Law Office now. We're here to help.