Meisha Posted October 5, 2005 Report Share Posted October 5, 2005 Why is it that a OC can potential sue someone on an unpaid debt forever, when in most instances one has a certain time frame in which to bring claim. For instance, in a negligence suit, the wrongful party's SOL clock starts ticking the moment the wrong party becomes aware of the harm. If the SOL runs out then the wronged party is forever barred from bringing claim. Is there no SOL for OC's? Would a 1099 to the debtor constitute lack of capacity for the OC to bring forth a claim? Could a JDB carry on the torch for the OC for the remainder?As you can tell, I am sooooo confused. But, am willing to learn. Link to comment Share on other sites More sharing options...
admin Posted October 5, 2005 Report Share Posted October 5, 2005 Why is it that a OC can potential sue someone on an unpaid debt forever, when in most instances one has a certain time frame in which to bring claim. For instance, in a negligence suit, the wrongful party's SOL clock starts ticking the moment the wrong party becomes aware of the harm. If the SOL runs out then the wronged party is forever barred from bringing claim. Is there no SOL for OC's? Would a 1099 to the debtor constitute lack of capacity for the OC to bring forth a claim? Could a JDB carry on the torch for the OC for the remainder?As you can tell, I am sooooo confused. But, am willing to learn. Of course. The SOL on debts ranges from 3 - 6 years in most states. Link to comment Share on other sites More sharing options...
LadynRed Posted October 5, 2005 Report Share Posted October 5, 2005 Unfortunately, in most states, the expiration of the SOL doesn't PREVENT them from suing, its not illegal. It just gives YOU the affirmative defense of the expired SOL to use if they DO sue for an out-of-statute debt.In WI and CA it IS illegal to sue on an SOL debt and those are the only 2 states that I know have such prohibitions. Link to comment Share on other sites More sharing options...
tropicaljo Posted October 5, 2005 Report Share Posted October 5, 2005 While it may not be illegal in most states for a creditor to file suit on a time-barred debt, it is certainly frowned upon by the courts and considered not only a frivolous waste of the courts time, but considered "an unfair and unconscionable means to collect a debt", as seen in Kimber vs. Federal Financial Corp. and also Commonwealth of Pennsylavania vs. Richard Cole, M.D. Link to comment Share on other sites More sharing options...
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