Do I need an attorney if a creditor has called me?

You might need an attorney. If this debt is from 1996 the statute of limitations has run for collection efforts. I see this on a regular basis. Real bottom feeders. They buy up old debt for one cent on the dollar. Then they start calling. If they get one out of a hundred to pay something they come out way ahead. Don't pay them anything.

It is always best to consult with a debt relief attorney when confronted by aggressive creditors. It is likely that the statute of limitations has passed on this matter, a defense which would prevent them from successfully suing you. Many attorneys offer free consultations and would be willing to help you determine what kind of help you need. It may be as simple as writing a letter. The next time this creditor calls get the name and address of the debt collector as well as their reference number for the case. Do not agree to give them a payment.

If you owe a debt that is older than 4 years the chances are that the statute of limitation will not allow the creditor to sue and get a judgment. Tell the creditor the statute of limitations has run. If phone calls and collection efforts do not cease immediately contact an attorney because you have a right to sue for illegal collection.

If this is a collection agency, they are bound by state and federal laws regarding what actions they may take. If you ask them to validate a debt, they must do so within 30 days. They may not threaten to take some action which they cannot legally do. There are provisions to enforce these laws and they include an award of attorney fees. Having said that, the debt may be valid. Even if it is, the statute of limitations may have expired or there may be other impediments to proving the debt. It has been my experience that debt collectors often threaten things that they cannot do. For example, no one can garnish your property or put a lien on your property unless they have a valid judgment. In order to get a judgment they must personally serve you with a summons and complaint. Unless and until that happens, they can do nothing except harass you. Some collectors are now operating off shore making themselves effectively out of reach of law enforcement. But that also makes them powerless to enforce their debt since they can't appear in court. You have three options: ignore them; wait until they file a lawsuit and defend it or file a bankruptcy which will eliminate that debt forever.

Be careful. If no payment has been made since '97, chances are the Statute of Limitations has run and it is uncollectible. However, if you make any payment, it will revive the debt and start the Statute running again, This debt was probably bought for next to nothing by an individual or small company that just harasses people in the hopes that they'll pay on an uncollectible debt. Demand that they send you writen proof that they own the debt and that the Statute of Limitations hasn't run.

I am a bankruptcy attorney and your question is not one of bankruptcy. However, California has a 4 year Statute of Limitations on debts that are over 4 years old. That means no payments or use of the credit card have been made during the past 4 years. Making a payment to them will toll the statute and they can sue you. Otherwise, the Statute prevents them from suing you for the debt, but they can still call you.

You might want to get an attorney. It is perfectly reasonable to ask them to prove to you that they have the right to collect the debt. In my experience collection agencies are bullies, but are more likely to deal somewhat fairly with an attorney, particularly one who deals primarily in debt. You might have defenses to the collection even if they can prove to you that (a) the debt is valid or (b) the collection agency has a right to collect it. In addition, if you have a lot of debt that you cannot pay (in other words, if there are other debts in addition to this one), you might want to at least consider how a bankruptcy might help you. You should definitely discuss your situation with an experienced bankruptcy attorney.