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Some debts are too old for collection efforts

Readers of this Tennessee debt relief and bankruptcy blog know that there are many reasons that Americans fall into debt.

While medical bills and unexpected job losses can quickly sink families into financial peril, the everyday financial grind of raising kids, paying mortgages, and covering basic costs can also erode the financial stability that individuals have worked hard to build. Debts come in many forms and from many causes, but all can have a negative impact on the financial well-being of Tennessee residents.

When a loan falls into arrears, a debtor may begin to receive calls from a collection agency. Collection agencies are entities that help lenders compel payments on their outstanding loans. They are bound to abide by certain laws and practices and may not harass debtors in their efforts to secure repayment of loans.

If, though, a lender or their collection agency does not pursue repayment of a loan that debt, may effectively become uncollectible by the lender. Some debts may become time-barred by the state's statute of limitations and may no longer pursued if they are not sought in a timely fashion. In Tennessee, loans and debts are generally uncollectible due to time-barring if they are not sought out within six years of when they are created.

Debtors who believe that collection efforts against them may be time-barred by the statute of limitations may want to talk to debt relief attorneys in their communities. Generally, debtors do not have to repay time-barred debts and efforts to compel such actions may be impermissible. Individual legal guidance should be sought by those who are facing this unique debt relief issue.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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