Michigan has a statute of limitations on debt collection of six years (with certain, limited exceptions).  Say you have a balance on a credit card, fall on hard times, and six years goes by without a) you making a payment on the account, or b) the creditor filing a lawsuit against you.  Under Michigan law, you now have a defense to any future debt collection lawsuits they might be thinking of filing!  If you're sued, and you timely and appropriately assert that the statute of limitations has passed (the "this debt is time-barred" defense) in your answer, you just may well win your case!

But there's a catch ...

If the creditor can convince you to pay something - anything - on that old debt, the six-year period starts all over again!

Click the title of this post for more …

Beware of Collection Scams - Especially After Bankruptcy!

Don't be intimidated by debt collection scammers who threaten you with arrest.

A former bankruptcy client called the other day - a single mom, struggling to work and raise her young kids.  She sounded scared, but she told a story I've heard so many times before.  She'd just hung up with a bill collector, who told her that she owed money on a loan from 2010, and that if she didn't immediately pay, she would be arrested later that day.  Fortunately, my client remembered me telling her that she should not pay any debt that was owed prior to the date she filed her Chapter 7 case. Instead of giving the guy her debit card number, she wrote down his name and number, and called me.