Being sued for debt when the amount owed is old and long forgotten is no fun. Unfortunately, there is no statute of limitations on a bill. If you ignore your financial problems, they do not just go away. Years later, when you are in a more comfortable financial position, the creditors can come back and collect on you.
Some people think that if they do not pay the debt, it goes away after 7 years. While it is true that it goes off your credit report, the legal obligation to pay does not go away.
Other people think that if the credit card company reports the bill as a "charge off" and deletes it from their books that it relieves them of their responsibility to pay.
Neither of these situations is true and faulty claims can lead to you being sued for debt that you thought was gone and buried.
If a collector contacts you regarding an old debt, you need to get all of the information right away. You may have lost the records or forgotten how much you owed in the first place. But do not be surprised if the amount has ballooned as a result of years of compound interest.
Hire a debt negotiator right away to help you deal with this situation. If the collection agency pursues the situation in court and gets a Judgment against you, it could result in your wages being garnished or the loss of property including bank accounts, automobiles, and even your home.
If you are being sued for debt – even if it is old bills – do not let the situation lie dormant. It will come back to bite you.