R&H Logo
Does the statute of limitations start on the date that the original account became past due or the date that it was sold to a collection agency? If my original account closed in 2016 but the debt collection account opened in 2017, which date do I go off of for the 6 years?
May 17, 2020
Bankruptcy
Close Menu IconThe information provided is for general information and does not form an attorney-client relationship. See our .
Bill HenryFounding Partner | 18 years of experience
Profile Picture of Attorney Bill Henry
Profile Picture of Attorney Bill Henry
Bill HenryFounding Partner 18 years of experience

The strict language of the statute reads that it is 6 years from the date the "cause of action" accrues for MOST TYPES OF DEBT, generally unsecured debt such as credit cards and medical bills. It can differ for other types of debts such as a prior foreclosure where the creditor is seeking a deficiency balance from you. To further add confusion, the courts in each county have come up with somewhat differing views of this definition. Some take the strict view that it is the date of default on the original loan. Some take the view that if it is sold validly and they can show the purchase of the debt, the new creditor starts the cause of action time clock again once they purchase the debt.

Disclaimer
The response provided is based on the available information and is not intended to constitute a comprehensive answer to the inquiry. The only manner to obtain complete and adequate legal advice is to consult with an attorney. Please be advised that no communication, including Q&A postings, through this website establishes an attorney-client privilege, and such exchanges do not create an attorney-client relationship and will not be treated as confidential. The information presented is general information only and should not be relied upon to take, or fail to take, legal action.
Didn’t find what you were looking for?