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Is there a limitation on time and can a debt be reopened if declared?

Is there a limitation on time and can a debt be reopened if declared?

Q: Can a 10 year old debt still be collected?

Yes, a ten-year-old debt can still be collected if it falls within the applicable statute of limitations. In Ohio, this typically means the debt could still be enforceable if it is a written contract, which has a fifteen-year limit. However, if the statute has expired, the creditor cannot take legal action to collect it.

Full question:

In 1992, I made a purchase for $400. I didn't pay the whole debt off. In 1996 the company declared the debt noncollectable. The store I bought it from went out of business. I recently paid off a huge debt. I just received a collection notice about that debt from 1992. What was ironic is it is the same collection company I just made this large payoff to. I thought the debt declared "noncollectable" was long closed. This is the first time I have heard from them about that $400 debt. Is there a limitation on time and can a debt be reopened if declared "noncollectable, charged off"?

Category: Debts and Credit
Date: 04/07/2025
State: Ohio

Answer:

A "charge-off" means the creditor writes off the account balance as a "bad debt." It usually happens after six months of non-payment. After that, it is no longer included in their accounting books as an asset. However, you still owe the money, the creditor has just been forced by the rules of accounting to zero out the debt on their financial ledgers. The following are statutes of limitation for collecting a debt in Ohio, which run from the time payment was due:

Open Account (credit cards) 4 years

Written Contract: 15 year

Domestic Judgment: 21 years (renewable)

Foreign Judgment: 21 years (renewable

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.

FAQs

How long before a debt becomes uncollectible?

In Ohio, the statute of limitations for collecting most debts is generally four to fifteen years, depending on the type of debt. For example, credit card debts typically fall under the four-year limit, while written contracts may have a fifteen-year limit. Once the statute of limitations expires, a creditor cannot legally enforce the debt in court, but they may still attempt to collect it.

Should I pay a debt that is 10 years old?

Paying a debt that is ten years old can be a personal decision. While the debt may still be collectible if it falls within the statute of limitations, paying it could potentially restart the clock on the debt. It's advisable to consult with a legal professional before making any payments on old debts to understand the implications.