What Can Restart the Debt Statute of Limitations in TX?
I had a 7 year old collection account which is removed from my credit reports because the 1st day of deliquency was more than 7 years ago. About 2 years ago, the collection agency found me and I started to pay them for about 1 year. Now, the negative account is removed from my list. Another collection agency purchased this debt and they sent me a bill in the amount of full amount. The old collection agency doesn't exist anymore so I stopped paying. Since my last payment was in Feb. 2012, can this negative account be relisted on my credit reports? My firrst day of deliquency was 7 years ago - my last payment was in Feb. 12. I'm afraid that the new collection agency will list it again for 7 years. Please advise.
Separate consideration and usually a new promise is required. The mere fact that a partial payment occurred will not restart the statute of limitations absent more in most instances. Of course, the collection agency or creditor may try and use this in court but absent something like forbearance of collection activities or the like the mere payment should not start the limitations again. Limitations in certain types of debt begins to accure on the date that business between the debtor and creditor ceased as well. This is a dangerous concept as there is no bright line test and has recently began to be proffered in certain debt scenarios.
Barring another state being specified as the controlling law under your original debt for this collection account, Texas has a four year statute of limitations on credit card (open account) accounts. The payment or a promise to pay "tolls" or re-sets the statute of limitations. If I understand your situation correctly that fact that you resumed a payment in Feb. 2012 started a new clock running so that even if you made one single payment in Feb. 2012 and no other payments since then, the creditor (or collection agency who bought the original debt) has until Feb. 2016 to take action against you to collect this debt (including suit). Anytime you make a payment or promise to pay it, you renew the limitations period and it starts all over again.
This answer is for informational purposes only and may not be relied upon as legal advice.
