Time-Barred Debts: Debts with Expired Statue of Limitations

There are plenty of debts out there which are known as "Time-Barred." To put it simply, a Time-Barred debt is a debt which is too old to be collected through a normal court process. That means the debt's owner doesn't have to worry about legal action being filed against them from their creditors or from collectors hired to acquire their debt. While it's not impossible to collect on a time-barred debt, it is highly unlikely you will be able to do so. After all, without the threat of legal action there's a slim chance of a debtor complying with a collector's wishes. 

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What constitutes a Time-Barred debt, and the length of time needed to pass before a debt's statute of limitations expires, varies from state to state. For some states a debt might become Time-Barred within 3 years of it being owed. For other states the statute of limitations on a debt might not run out for at least a decade. To find out whether a debt is Time-Barred or not you need to learn the law of your state. You can also call the office of your state's Attorney General to find out when a debt becomes, essentially, uncollectable.

These laws not only protect a debtor from legal action, they also protect debtors from overly aggressive collectors looking to acquire payments off of the expired debt. If a debtor has been harassed or aggressively pursued by a debt collector over a Time-Barred debt then that debtor is legally able to sue the collector or the creditor itself. If you are a creditor then you likely don't want to be taken to court over a debt you can't collect on, and you likewise don't want to expose your creditor clients to legal processes due to your behavior. So while Time-Barred debts can technically be paid back, they often aren't worth pursuing.

Little Known Secrets for Collecting Judgments

Most debt collectors don't want to have to bring their debtors to court for the same reason why most debtors don't want to go to court. Going to court to settle a debt is an uncertain affair, it can be very expensive if you have to hire lawyers, and it is almost always a big interruption of your daily working life and routines. Yet there are a few little known secrets for collecting judgments which the most successful debt collectors understand, and which help them make court a worthwhile experience every time.

The first little known secret for collecting judgments is the fact you need to run the math and figure out whether a debt is worth bringing to court in the first place. Take out a piece of paper and draw two columns on it. In the first column write out how much money you have to gain from collecting on the debt which you're considering bringing your debtor to court over. In the next column write out and add up all of the expenses you can expect to incur from going to court. See if the numbers work out in your favor, and then decide whether to go to court or not.

Interestingly enough, the best secret for collecting judgments in court is a very simple, common sense one- you need to make sure you abide by the law throughout the entire process. The number one reason why you'll lose a court case against an individual who owes you a debt is if you break the law at any point in the process of attempting to collect from them. If your debtor can prove that you have harassed them, or if you otherwise violated one of their rights as a debtor, then you will lose your case. Most debt cases are yours to lose, so focus on making sure you abide by the law and your industry's best practices and you should do just fine collecting judgments.

3 Sure Fire Ways to Collect International Debt

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Over the last 3 years, more people than ever before have started to default on their debts or otherwise attempted to skip out on their financial obligations. While plenty of individuals have begun to default on their domestic debt, even more people have defaulted on their international debt. International debt is more difficult to collect due to the fact every nation has their own laws regarding its collection, and a collection agent needs to abide by these laws. That's to say nothing about the added difficulty of tracking down an international debtor.

Despite these difficulties, there are 3 sure-fire ways you can collect international debt.

1. Know the Laws Involved: Not every country have the same legal agreements between each other regarding how you can collect on international debt. For example the United States has a different set of debt collection agreements with many Asian countries than they do with European countries. If you aren't well versed in these laws, or if you don't feel like you'll be able to understand them on your own, then consider working with a lawyer well versed in the relevant laws.

2. Sue the debtor: Filing official legal actions is your best bet when it comes to grabbing an international debtor's attention. International debtors are unlikely to respond to the same light, unofficial pressures as domestic debtors so taking serious, official, and occasionally drastic measures is often necessary. Keep in mind that the actual legal process and proceedings will occur within the court of the country of your debtor.

3. Pawn the debt off: You can also sell the right to collect the debts you're currently chasing to a company better versed in international collections. This is the fastest and easiest method of receiving compensation for the international debts you're presently responsible for.

Settling an international debt isn't impossible, but it is more difficult than collecting domestic debt.