The Collection of Credit Card Debt…And Bankruptcy

When dealing with Credit Card Debt a common question is “how long does the credit card company have to collect on the money that I owe?”  The short answer is that the statute of limitations in Ohio for a written contract is eight (8) years.  Ohio Revised Code § 2305.06 ‘Contract In Writing’  This means that creditors have eight years to bring forth a lawsuit to enforce the debt.  The statute of limitations for an oral contract is six (6) years.  Ohio Revised Code § 2305.07 ‘Contract Not In Writing – Statutory Liability’  The clock begins to tick from the earlier of (1) when the debt became overdue or (2) when a borrower last made a payment.

The passing of the statute of limitations for debt does not mean that you no longer owe the credit card debt.  It means that the creditor can no longer use the court system to enforce the debt.  Sometimes you will get contacted by a collection company or a law firm that is trying to collect the debt.  They will use scare tactics and pressure you into paying the debt.  If the debtor does make a payment at a later time, this act can restart the statute of limitation.

Some Creditors Don’t Report Debt

Additionally, just because a debt is no longer showing up on your credit report does not mean you no longer owe the debt.  A particular creditor might not report the debt to the credit reporting company, which is typical of medical bills and pay day loans/cash advances.  You need to be aware of your debt showing up on your credit report and what is not on the report.

Once bankruptcy is filed, the law sets forth the automatic stay which prohibits anyone from pursuing the collection of credit card debts, and stops any lawsuits or other legal proceedings such as foreclosures or garnishments.