You are here:

Bankruptcy Law/4 year statute

Advertisement

Expert: - 9/7/2006


Question
I am a California resident who has only credit card debt. It is spread out over about a dozen accounts/companies. This debt is now 3 1/2 years old. All the accounts but one seem to be charged off. This account has been sold to a collection agency who has now hired a law firm that has informed me that they are going to sue me.
I know that once my debt is over 4 years old, they cannot come after me any longer. I have taken a chance and not filed BK but now I am curious if I should go ahead and file BK (I would pass the means test) at this point or wait and see if the creditor truly takes me to court and then file BK? I was trying to avoid the stigma of BK... thanks.

Answer
If it has in fact been over 4 years since you made a payment or any charges on the card, then you might want to just wait and see if they try to file a lawsuit and, if they do, posing a defense of statute of limitations.  If you lose, you can always file a bankruptcy then if it's in your best interest.

Bankruptcy Law

All Answers

Answers by Expert:

Ask Experts

Volunteer

Mark J. Markus- California Bankruptcy Attorney

Expertise

Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

Experience

Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

    • ©2012 About.com, a part of The New York Times Company. All rights reserved.