Should I Try to Settle Time-Barred Debt?
If you have debt that is quite old and has already become time-barred, you may be wondering if you should attempt to pay off the debt or to settle it. As you might know, most types of debt in Georgia have a six-year statute of limitations. Once that time window closes, a creditor cannot take any legal action against you to collect the debt. After six years, the debt is considered to be time-barred under Georgia law. What this means is that the creditor cannot sue you to collect the debt. Further, the creditor cannot take additional action against you, such as placing a lien or obtaining a garnishment. However, you will still owe the debt, and it will still show up on your credit report.
Generally speaking, unpaid debt remains on a person’s credit report for seven years after it has been written off by the creditor. It can take quite a long time for debt to be written off. As such, it can remain on your credit report for a very long time and impact your financial situation. Should you try to settle your time-barred debt? Consider the following information.
Determine Whether the Debt is Definitely Time-Barred
First, it is important to determine whether your debt is definitely time-barred. If not, it is certainly a good idea to consider debt settlement if you are able to do it. If the debt is time-barred, you can then discuss the benefits and limitations of settling the time-barred debt with an attorney.
Avoid Any Actions That Could Revive the Debt Before You Have Spoken with a Lawyer
Before you discuss your time-barred debt and the possibility of debt settlement with a lawyer, do not take any actions that could revive the debt. If you make a payment, you can revive the debt under Georgia law. Similarly, if you enter into a written agreement to pay in the future, you can revive the debt under Georgia law. Once a debt is revived, the six-year statute of limitations starts all over again.
Consider the Benefits of Settling the Time-Barred Debt
Even though your debt may be time-barred such that the creditor cannot take legal action against you to collect, having that debt on your credit report may be affecting you in a wide range of negative ways. For example, if you are hoping to apply for a mortgage or another line or credit, having a substantial unpaid debt on your credit record could impact your ability to obtain new credit altogether. Or, having unpaid debt could impact your ability to obtain favorable credit terms. Having unpaid debt on your credit report can also show up on a credit check run by a new employer, or by an employer for whom you are hoping to work.
Accordingly, there may be significant benefits to settling your time-barred debt. To find out about the benefits to you specifically based on your personal circumstances, it is important to talk with a Georgia debt settlement lawyer.
Contact a Georgia Debt Settlement Lawyer
If you have any questions about debt settlement or how it might be able to benefit you, it is important to seek legal advice. One of the experienced Lilburn debt settlement attorneys at Konn Law Firm LLC can speak with you today to learn more about your financial circumstances and to provide you with detailed information about debt settlement as it relates to your particular situation. Contact us today for more information.
Sources:
law.justia.com/codes/georgia/2020/title-9/chapter-3/article-6/section-9-3-112/
law.justia.com/codes/georgia/2022/title-9/chapter-3/article-2/section-9-3-24/
experian.com/blogs/ask-experian/how-long-do-charge-offs-stay-on-your-credit-report/
