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An 87 year old man owns no property and lives in an apartment. He owns a 92 Honda Sedan. He is dependent on his SS and SM annuity. He has $20,000 to $31,000 credit card debt. He cannot make payments nor can afford the bankruptcy fee. What is the statute of limitations for debt? What is the best option?
13 ANSWERS
judith runyon
Yes, 4 years from the date of use or payment.
Answered on Nov 17th, 2011 at 1:03 PM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Given his age, and lack of assets, I'm not sure he even needs to worry about anything. But in Virginia, the statute of limitations on breach of a written contract is 5 years.
Answered on Nov 16th, 2011 at 2:37 PM
Daniel James Wilson
There is some dispute in CO re statute of limitations on credit card debteither 8 or 3 years. However, any payment on the debt starts the clock again.
Answered on Nov 16th, 2011 at 12:44 PM
2 Awards
Yes there is a statute of limitations. It depends on the form of his debt.
Answered on Nov 16th, 2011 at 12:24 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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The statute of limitations for written contracts, such as credit cards, is four years.
Answered on Nov 15th, 2011 at 11:43 PM
Glen Edward Ashman
The answer depends on the type of debt and what state he is in and what state law the credit card agreements say controls.
Answered on Nov 15th, 2011 at 11:26 PM
The statute of limitations on written contracts is five years. The statute of limitations on open accounts is four years. However, Social Security income is exempt from execution of a judgment. A maximum of $1,250 per month of annuity income is exempt. Depending on the amount of his annuity income, he may be entirely judgment proof and there would be no need to file a bankruptcy.
Answered on Nov 15th, 2011 at 10:45 PM
Family Law Attorney serving McDonough, GA
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South Atlanta Family Law
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The statutes of limitation is either 4 or 6 years from the date of the last payment depending on how the debt is classified. Chances are he qualifies for a chapter 7 and should consider filing one if he cannot afford to pay his debts and have limited income. There is no requirement that he use an attorney but it is always recommended to do so.
Answered on Nov 15th, 2011 at 10:41 PM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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File bankruptcy the mere fact that a debt has a statute of limitations does not mean you do not owe the debt. It means that once sued you can assert the defense.
Answered on Nov 15th, 2011 at 8:36 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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It sounds like he is judgment proof which means there is no way anyone can get anything from him. However, that will not stop the creditors from making the remaining years of his life miserable and older people seem to worry more because they have more free time to worry and take things more seriously. Therefore, bankruptcy is a great option for him if he wants to stop creditors from calling and maybe suing him although they would get nothing at the end. While the statute of limitations on credit cards and personal loans is 4 years from the date he stopped paying, that will not stop many collection agencies from continuing to call and send letters (or even suing sometimes hoping he will not answer the lawsuit and they get a judgment by default). So the options is to do nothing and continue to dodge calls or get it over with by filing a Chapter 7 case.
Answered on Nov 15th, 2011 at 8:21 PM
Chapter 7 Bankruptcy Attorney serving Huntington Beach, CA
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Law Offices of Robert Parkinson Taylor
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Statute is probably 6 years from last payment (open book account). Some may tell you 4 for contracts but I disagree. At any rate, this old man is probably judgment proof. However, a bankruptcy may by him get some peace of mind. Have him get a free consult from an experienced bankruptcy attorney. Someone who's good will tell you what the options are and how to minimize any inconvenience regardless of the path you choose. A lot of attorneys like myself will allow you to make small monthly payments over an extented period of time if bankruptcy the right option.
Answered on Nov 15th, 2011 at 7:19 PM
The statute of limitations must be pled and proved in a lawsuit - it is not an automatic bar to collection. His car is well below $10,000 - the allowed exemption for those over 60. His social security is 100% exempt. I don't know what an "SM" annuity is, so i can't say. He might be able to get free legal help at Colorado legal Services.
Answered on Nov 15th, 2011 at 7:05 PM
Chapter 13 Bankruptcy Attorney serving Bloomington, MN
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Gregory J. Wald
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Letters to the creditors explaining his situation might help. They can't garnish social security retirement benefits and if has no other income or property, they are not going to be able to collect anyway.
Answered on Nov 15th, 2011 at 6:55 PM