Can you collect a debt after statute of limitation expires?

As a business or as a debtor, it is important to both of you to know whether a collection agency in Atlanta can still collect the debt or not if the statute of limitations is over. The answer to your query is that it depends.

To understand the answer to this question, you have to understand what is the statute of limitations and how it works.

Statute of limitation- meaning

Statute of limitation means that after some time, a creditor cannot sue the debtor over a debt. When the SOT is expired, a debtor can take legal action against you if you even say that you can sue them.

Though a debt collector or creditor can still collect on a debt. For instance, if a third party gets the debit account, they can start the collection process, if they are not aware of the expiration of the statute of limitations. The debtor can press charges, but they would need to show evidence in the court.

Also, if a debtor and collector both are unaware that a statute of limitations has expired, and the debtor agrees to pay some amount, the whole collection cycle can restart.

Even the credit bureau deleted a debt that is older than seven years from the credit report. Talk to the bureau to ensure this happens.

How long does it take for a debt to expire?

• How much time does a statute of limitations on debt expire? Well, it depends on the states. 
• Every state has different laws when it comes to the expiration of debt, and most of the time, it also depends on the contract type a business and a debtor had.
• In Atlanta, Georgia, the statute of limitations on debt claims is four years. Also, in the case of oral contracts, it can end sooner, but it is best to avoid oral contracts, they can be messy.
• Lastly, if the lender lives in another state/country and the debtor is from another, which statute of limitations laws will be followed is not clear. It is best to ask for a collection agency.

How to deal with debt?

• If your business provides goods/services on credit and the customer is not paying the money, you should start the collection process. The debt accumulating will harm your business’s cash flow even leading to bankruptcy.
• If even after 120 days, the debtor is showing no signs of paying the debt, hire a collection agency. They have the means and techniques to find the whereabouts of the debtor. Also, a debtor often agrees to pay when a debt collector is involved.
• They use ethical methods of recovering the debt, and a collector in Atlanta never uses force or aggression. Instead, they come up with plans so that the debtor can pay without going broke.

To conclude, debt is never good for a business or an individual. As a debtor, you have to pay the debt that you took. But if you believe the claim is wrong or the creditor is mistreating you, use your rights and register a complaint against them.