Ok so here is the situation. I live in Texas and have been contacted by a collection agency regarding a medical bill from March of 2009. It was an ER visit that had a portion of the claim to the insurance denied due to improper coding. I was conta...
That Statute of Limitation for collection of debt in Texas is 4 years from the date of last activity. This is a defense to collection of debt in a lawsuit but not a restriction for a creditor to attempt to collect the debt or report negative information to the credit bureaus. Under the Texas and Federal Fair Debt Collections Practices Act there are limitation on what methods may be used by your debt collector. An attorney can advise you of your options and rights under these consumer protection laws. You may also be able to negotiate a settlement for pennies on the dollar and include in the settlement agreement a provision for the creditor to delete any negative reporting to the credit bureaus. You must be cautious because if a payment is made outside a settlement agreement being executed it can reset the clock on your Statute of Limitations defense.See question
In a Chapter 13 bankruptcy filing, does any loan or any note who's Statute of Limitations has been expired, will it be included in the payment plan or it will not be? Because these loans have not been made a payment in more than 4 years. So the...
When filing Chapter 13 bankruptcy you should list all creditors including those barred by the Statute of Limitations. However the creditor should be listed with a 0 balance and notate that the debt is disputed due to Statute of Limitations (SOL) defense.
If the creditor files a proof of claim listing the full balance owed then it is the Debtor and Debtor's attorney responsibility to object to the claim and get an order signed by the Judge disallowing the claim based on a SOL defense.
If the claim is not disallowed then it may be included in the Chapter 13 plan payment if your required to pay a percentage to unsecured creditors.
SOL is a defense to collection of debt. For example if you are sued on a debt that is beyond the SOL your must still file a response and assert the defense to avoid a judgment.See question