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:
- State: Ohio
Answer:
A "charge-off" occurs when a creditor writes off a debt as a "bad debt," typically after six months of non-payment. This means the creditor no longer counts the debt as an asset on their financial records. However, you still owe the money. The creditor is simply not including it in their accounting. In Ohio, the statutes of limitation for collecting debts are as follows:
- Open Account (e.g., credit cards): 4 years
- Written Contract: 15 years
- Domestic Judgment: 21 years (renewable)
- Foreign Judgment: 21 years (renewable)
Since your debt was charged off in 1996, it may still be collectible within the applicable statute of limitations, depending on the specific circumstances.
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.