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question iconDoes 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?
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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.

The foregoing information is general information only and should not be relied upon to take, or fail to take, legal action. No attorney-client relationship is formed by this information. __The only manner to obtain complete and adequate legal advice is to consult with an attorney.__
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Bill Henry
BankruptcyMay 17, 2020
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