Full question:
I want to know the statue of limitations on a ten year old debt. The bank that it was owed to went out of business. Another company 10 years later is trying to collect debt. Is that legal?
- Category: Debts and Credit
- Date:
- State: Oregon
Answer:
When a bank goes out of business, it typically sells the debts it holds, often to another bank or collection agency. The statute of limitations for debt collection varies by state and the type of debt. Generally, unsecured debts expire three to six years after the last payment or activity on the account. For written contracts like car loans, the limit is usually six years.
Once the statute of limitations has expired, you can use it as a defense to prevent collectors from taking legal action against you. However, the debt itself does not disappear. Collectors can still attempt to collect the debt using other methods.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.