Does debt have a statute of limitations? 20 Answers as of November 17, 2011

It sounds like he is judgment proof which means there is no way anyone can get anything from him. However, that will not stop the creditors from making the remaining years of his life miserable and older people seem to worry more because they have more free time to worry and take things more seriously. Therefore, bankruptcy is a great option for him if he wants to stop creditors from calling and maybe suing him although they would get nothing at the end. While the statute of limitations on credit cards and personal loans is 4 years from the date he stopped paying, that will not stop many collection agencies from continuing to call and send letters (or even suing sometimes hoping he will not answer the lawsuit and they get a judgment by default). So the options is to do nothing and continue to dodge calls or get it over with by filing a Chapter 7 case.

Statute is probably 6 years from last payment (open book account). Some may tell you 4 for contracts but I disagree. At any rate, this old man is probably judgment proof. However, a bankruptcy may by him get some peace of mind. Have him get a free consult from an experienced bankruptcy attorney. Someone who's good will tell you what the options are and how to minimize any inconvenience regardless of the path you choose. A lot of attorneys like myself will allow you to make small monthly payments over an extented period of time if bankruptcy the right option.

Sounds like you may bee judgment proof. This means that you have no income which is garnishable, except possibly the annuity. So even if your creditors get a judgment they can't come after anything.

The statute of limitations must be pled and proved in a lawsuit - it is not an automatic bar to collection. His car is well below $10,000 - the allowed exemption for those over 60. His social security is 100% exempt. I don't know what an "SM" annuity is, so i can't say. He might be able to get free legal help at Colorado legal Services.

Yes, 4 years from the date of use or payment.

The statutes of limitation is either 4 or 6 years from the date of the last payment depending on how the debt is classified. Chances are he qualifies for a chapter 7 and should consider filing one if he cannot afford to pay his debts and have limited income. There is no requirement that he use an attorney but it is always recommended to do so.

The statute of limitations on written contracts is five years. The statute of limitations on open accounts is four years. However, Social Security income is exempt from execution of a judgment. A maximum of $1,250 per month of annuity income is exempt. Depending on the amount of his annuity income, he may be entirely judgment proof and there would be no need to file a bankruptcy.

Letters to the creditors explaining his situation might help. They can't garnish social security retirement benefits and if has no other income or property, they are not going to be able to collect anyway.

Depending on where he lives, it is generally 6-7 years, but it can also vary by the type of debt. I would call legal services and see if they can help him, or perhaps check with the local Senior Citizen's Advocacy group (of whatever type is available) and see if they have anyone who might be willing to do it for him for free. If his income is low enough, the bankruptcy court may also waive his application (court) fee.

The statute of limitations in Texas is 4 years from the date of default. They can still file suit after 4 years but then you have a defense of the expiration of the statute of limitations. One point to make here, there is no statute of limitations for collection of the debt outside of a courtroom. A creditor can call you every day for the rest of your life demanding payment in full. The best option depends upon your tolerance for debt collectors harassing you by mail and phone.