If you’ve ever received a phone call from a debt collector asking about a credit card debt that you barely remember, you might be wondering just how long debt collectors can pursue an old debt.
The answer is complicated. Each state has its own statute of limitations on debt, and after the statute of limitations has expired, a debt collector can no longer sue you in court for repayment. However, in many places, debt collectors can still try to collect on old debts beyond the expiration of the statute of limitations.
Household credit card debt has leveled out in recent months, but U.S. consumers still owe record-high credit card balances of $986 billion. If you have old credit card debt that you haven’t paid off — or if you’re currently getting calls from a debt collector — here’s what you need to know.
How does debt collection work?
Generally, the earliest phases of the debt collection process begin to kick in about 30 days after a payment’s due date has passed and payment has not been made — the point at which the debt is marked as delinquent. Consumers may start to receive calls or notices from the creditor at this point, but debt collection activities may escalate if the creditor can’t reach you.
“Later, often around 180 days after the original due date of the payment, the creditor might sell the debt to a collections agency,” says Michael Micheletti of Freedom Financial Network. “This step indicates that the creditor has decided to give up on obtaining payment on its own, and selling the debt to a collection agency is a way to minimize the creditor’s loss.”
At this point, you’ll likely start to hear from the debt collector. Neither the debt nor the payment has changed, but another entity — the debt collector — now has the right to collect the payment.
“Debt collectors are companies that collect unpaid debts for others,” says April Lewis-Parks, director of education and corporate communications at Consolidated Credit. “It’s usually more cost-effective for companies to hire debt collectors than to continue to spend their own time and staff pursuing payment on delinquent accounts.”
Limitations on debt collection by state
The statute of limitations is a law that limits how long debt collectors can legally sue consumers for unpaid debt. The statute of limitations on debt varies by state and type of debt, ranging from three years to as long as 20 years. Below is a list of each state’s statute of limitations on different types of debt to help get you started — but be aware that credit card issuers sometimes argue in court that the law in their home state (not yours) is what should apply.
In the table below:
- Written contracts are those debts that are associated with a contract you signed, even if the contract itself is informal (such as a few notes jotted down on paper between neighbors).
- Oral contracts are debts for which no written contract was created, but verbal promises of repayment were made.
- Debts secured by promissory notes have a specific type of contract in place (the “promissory note”) that defines the number of payments to be made, the timing of those payments and the interest they incur. Promissory notes are common for mortgages, student loans, personal loans and other formal debt arrangements.
- Open-ended accounts include revolving credit accounts that can be borrowed from, repaid and borrowed from again (such as credit cards or lines of credit).
It’s also important to note that case law and state regulations on statutes of limitation are always evolving and often have more nuance than can be displayed in a single table. For example, revisions made to Kentucky state law in 2014 changed the limitations period that applies to written contracts — including credit card applications — signed by the state’s consumers. In Vermont, the statute of limitations for debts secured by promissory notes is 14 years — unless the signing of the note was not witnessed, in which case the limitation is six years.
For this reason, it’s always best to consult with an attorney in your state to understand which statutes of limitation, if any, apply to your situation.
Statutes of limitations by state |
|---|
| State | Written contracts | Oral contracts | Promissory notes | Open-ended accounts |
|---|
| Alabama (source, source) | 6 | 6 | 6 | 3 |
| Alaska (source) | 3 | 3 | 3 | 3 |
| Arizona (source) | 6 | 3 | 6 | 6 |
| Arkansas (source, source) | 5 | 3 | 5 | 5 |
| California (source) | 4 | 2 | 4 | 4 |
| Colorado (source) | 6 | 6 | 6 | 6 |
| Connecticut (source) | 6 | 3 | 6 | 6 |
| Delaware (source) | 3 | 3 | 3 | 3 |
| D.C. (source) | 3 | 3 | 3 | 3 |
| Florida (source) | 5 | 4 | 5 | 5 |
| Georgia (source, source) | 6 | 4 | 6 | 6 |
| Hawaii (source) | 6 | 6 | 6 | 6 |
| Idaho (source) | 5 | 4 | 5 | 4 |
| Illinois (source, source) | 10 | 5 | 10 | 5 |
| Indiana (source, source) | 6 | 6 | 10 | 6 |
| Iowa (source, source) | 10 | 5 | 10 | 5 |
| Kansas (source, source) | 5 | 3 | 5 | 3 |
| Kentucky (source, source, source) | 10 | 5 | 15 | 5 |
| Louisiana (source, source) | 10 | 10 | 10 | 3 |
| Maine (source) | 6 | 6 | 20 | 6 |
| Maryland (source) | 3 | 3 | 6 | 3 |
| Massachusetts (source, source) | 6 | 6 | 6 | 6 |
| Michigan (source) | 6 | 6 | 6 | 6 |
| Minnesota (source) | 6 | 6 | 6 | 6 |
| Mississippi (source) | 3 | 3 | 3 | 3 |
| Missouri (source, source) | 10 | 5 | 10 | 5 |
| Montana (source) | 8 | 5 | 5 | 5 |
| Nebraska (source, source) | 5 | 4 | 5 | 4 |
| Nevada (source, source) | 6 | 4 | 3 | 4 |
| New Hampshire (source) | 3 | 3 | 6 | 3 |
| New Jersey (source, source) | 6 | 6 | 6 | 6 |
| New Mexico (source, source) | 6 | 4 | 6 | 4 |
| New York (source) | 6 | 6 | 6 | 6 |
| North Carolina (source, source) | 3 | 3 | 3 | 3 |
| North Dakota (source, source) | 6 | 6 | 6 | 6 |
| Ohio (source) | 6 | 6 | 6 | 6 |
| Oklahoma (source, source) | 5 | 3 | 6 | 3 |
| Oregon (source, source) | 6 | 6 | 6 | 6 |
| Pennsylvania (source) | 4 | 4 | 4 | 4 |
| Rhode Island (source, source) | 10 | 10 | 10 | 10 |
| South Carolina (source, source) | 3 | 3 | 3 | 3 |
| South Dakota (source, source) | 6 | 6 | 6 | 6 |
| Tennessee (source, source) | 6 | 6 | 6 | 6 |
| Texas (source, source) | 4 | 4 | 4 | 4 |
| Utah (source, source) | 6 | 4 | 6 | 4 |
| Vermont (source, source) | 6 | 6 | 14 | 6 |
| Virginia (source, source, source) | 5 | 3 | 6 | 3 |
| Washington (source, source) | 6 | 3 | 6 | 6 |
| West Virginia (source, source) | 10 | 5 | 6 | 5 |
| Wisconsin (source, source) | 6 | 6 | 10 | 6 |
| Wyoming (source) | 10 | 8 | 10 | 8 |
How long can someone collect a debt?
Depending on the state, debt collectors may still pursue you even after the statute of limitations has elapsed — the time when your debt is considered “time-barred.”
“In some states, a debt collector is not allowed to try and collect on the debt if the debt has gone past the time limit for the state’s statute of limitations. In others, even though a debt collector can’t sue, they can still work to collect on the debt indefinitely,” says Micheletti.
These cases are becoming more common because lenders are increasingly selling off debts they’ve removed from their books for pennies on the dollar to third-party collection agencies who try to collect, even though the statute of limitations has run out.
If you’re being sued over a debt that’s outside of its statute of limitations, you may need to appear in court and prove that the debt is too old to collect. Don’t skip your court date because you believe you can’t legally be forced to pay an old debt. If you don’t appear in court and defend your case, a judge may rule in favor of the debt collector.
Also be wary of making payments on your debt or making a payment agreement with your creditor — doing so could reset the statute of limitations on your debt and make it legal again for debt collectors to sue.
What happens if you are being pursued by a debt collector after the statute of limitations has expired?
Consumers have many protections on debt collection activities, particularly after the statute of limitations has expired. There are three big reasons why you shouldn’t immediately claim responsibility for whatever debt a collector says you owe:
- Old debts have often been passed from one collection agency to another, and it’s very easy for debt collectors to make a mistake.
- In some cases, claiming the debt can reset the statute of limitations. If you’ve got an expired debt, the last thing you want to do is make it fresh again.
- The person calling you might be a scam artist. Debt collection scams exist, so make sure you don’t end up paying a fake debt collector money that you don’t actually owe.
Never make a payment, give out personal information over the phone — including information about the debt — or confirm the debt is yours. Instead, the Federal Trade Commission suggests telling the debt collector that you aren’t going to discuss any debts until you receive your written validation notice. Debt collectors are required to provide you with a written notice within five days after first contacting you about a debt that includes the name of the original creditor and the amount owed, as well as your rights under the federal Fair Debt Collection Practices Act.
“It’s critical to verify the information. Just as a creditor sold the debt to a debt collector to begin with, one debt collector may have sold the debt on to another. Along the way, errors could be made. A consumer should verify, at the least, that the debt does belong to them,” continues Micheletti.
You also have the right to send a “cease communication” letter to the collection agency. After you’ve sent this letter, the agency must stop calling you about your debt, except to confirm that it has received the letter and will stop contacting you or to inform you about a specific action it is taking against you (such as filing a lawsuit).
Can debt collectors sue you?
Typically, debt collectors will only pursue legal action when the amount owed is in excess of $5,000, but they can sue for less.
“If they do sue, you need to show up at court,” says Lewis-Parks. “If you don’t show up, the court will probably issue a judgment against you for the amount that the debt collector is suing you for. The debt collector can also attempt to find out where you work and garnish your wages. They can try to find out where you bank too, and freeze your accounts.”
Any court judgments will be added to your credit report and remain there for seven years, even if you pay the judgment, says Lewis-Parks. If you discover that you have a judgment against you, it’s a good idea to speak with a consumer law attorney to determine what rights you may have and whether you can get the judgment removed.
You should also be aware of your rights under the Fair Debt Collection Practices Act. According to the FTC, debt collectors are not allowed to call you after 9 p.m. or before 8 a.m., and they are not allowed to call your workplace if you have told them verbally or in writing that your employer does not allow such calls.
If a debt collector does sue you, there are a number of actions you may want to consider beyond hiring a consumer law attorney. Filing for bankruptcy or attempting to negotiate a settlement with the debt collector may both be appropriate paths for resolving your financial challenges.
Should you pay your debts after the statute of limitations has expired?
If you’re wondering how long does an unpaid debt last, there are varying opinions on this question. Some people argue that once a debt is no longer within the statute of limitations, it doesn’t need to be paid off. Others feel a moral obligation to pay off all of their outstanding debts, even if they can no longer be sued for failure to pay. There are also credit score impacts to consider.
“If you don’t make payments on your debt, it can still affect your credit for up to seven years regardless of when the statute ends,” says Katie Ross, education and development manager for American Consumer Credit Counseling. A big hit like this will affect your ability to qualify for personal loans, mortgages and credit cards.
Ross suggests coming up with a plan for repayment. But remember, if you start making payments again on old debt, the clock on the statute of limitations surrounding that debt starts anew, opening you up to being sued for the money owed, so this approach should be considered carefully.
“I would never pay a debt after the statute of limitations has expired because legally I do not owe the money,” says Ash Exantus, director of financial education at BankMobile. “You should simply contest the debt if it’s on your credit report and begin building new credit.”
It’s also important to remember that when outstanding debt gets old enough, it falls off your credit report and will no longer be an issue. Most unpaid and delinquent debt disappears from your credit report after seven years — and if it doesn’t vanish on its own, you can ask the credit bureaus to remove your old debt from your credit history.
If you have old credit card debt that is still within the statute of limitations, it’s a good idea to try to pay it off if you’re able. Consider transferring your old debt to a balance transfer credit card so you can use the card’s interest-free grace period to make payments on that balance.
“If you’re struggling to pay off your debt on your own, a nonprofit credit counseling agency may be able to help,” says Ross. “They can help you create a budget and may enroll you in a debt management program that can help you pay off debt faster and save a bit more money than you would if you tried to pay the debt off on your own.”
Other options may include credit card and debt relief programs, initiating a conversation with the creditor or collection agency to establish a manageable repayment plan or settling on a lower total amount owed. But if you’re not comfortable doing that, another option may be a type of personal loan known as a debt consolidation loan.
“A personal loan will generally offer a rate lower than credit cards,” says Micheletti. “A consumer could consolidate their credit card debt into one personal loan at the lower rate. If going this route, the consumer should use 100 percent of the proceeds from the loan to pay off outstanding debts in order for this option to be effective.”
The bottom line
Going through the debt collection process isn’t fun, but you do have options — and it doesn’t mean your financial future will be tarnished forever. If you’ve been contacted by a debt collector, it’s important to take the time to confirm that the debt is actually yours, that the debt collector is legitimate and that you’re still within the relevant statute of limitations of debt collection.
You’ll also want to educate yourself on your rights within the debt collection process, including when, where and how frequently debt collectors can contact you. Once you’ve armed yourself with this information, you can begin making a plan to resolve your situation — whether that means paying the debt, negotiating a settlement, waiting for it to expire or taking some other step.
No matter which route you choose, keep tabs on your debt’s timeline and understand not just your options, but their potential impact on your long-term financial picture. A financial advisor or consumer law attorney may be especially helpful in this process.
FAQs
The statute of limitations on debt in California is four years, as stated in the state's Code of Civil Procedure § 337, with the clock starting to tick as soon as you miss a payment.
Can a 10 year old debt still be collected? ›
Debt collectors may not be able to sue you to collect on old (time-barred) debts, but they may still try to collect on those debts. In California, there is generally a four-year limit for filing a lawsuit to collect a debt based on a written agreement.
Can a debt collector restart the clock on my old debt? ›
Keep in mind that making a partial payment or acknowledging you owe an old debt, even after the statute of limitations expired, may restart the time period. It may also be affected by terms in the contract with the creditor or if you moved to a state where the laws differ.
Should I pay a debt that is 7 years old? ›
Although the unpaid debt will go on your credit report and cause a negative impact to your score, the good news is that it won't last forever. Debt after 7 years, unpaid credit card debt falls off of credit reports. The debt doesn't vanish completely, but it'll no longer impact your credit score.
Should I pay off a 5 year old collection? ›
The best way is to pay
Most people would probably agree that paying off the old debt is the honorable and ethical thing to do. Plus, a past-due debt could come back to bite you even if the statute of limitations runs out and you no longer technically owe the bill.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What happens if you never pay collections? ›
If you ignore a debt in collections, you can be sued and have your bank account or wages garnished or may even lose property like your home. You'll also hurt your credit score. If you aren't paying because you don't have the money, remember that you still have options!
Do debt collectors give up? ›
If the debt is not collected, then the debt collector does not make money. In many cases, although you would think that debt collectors would eventually give up, they are known to be relentless. Debt collectors will push you until they get paid, and use sneaky tactics as well.
How can I get a collection removed without paying? ›
You can ask the creditor — either the original creditor or a debt collector — for what's called a “goodwill deletion.” Write the collector a letter explaining your circ*mstances and why you would like the debt removed, such as if you're about to apply for a mortgage.
What not to say to debt collectors? ›
If you get an unexpected call from a debt collector, here are several things you should never tell them:
- Don't Admit the Debt. Even if you think you recognize the debt, don't say anything. ...
- Don't provide bank account information or other personal information. ...
- Document any agreements you reach with the debt collector.
No matter which form of bankruptcy is sought, not all debt can be wiped out through a bankruptcy case. Taxes, spousal support, child support, alimony, and government-funded or backed student loans are some types of debt you will not be able to discharge in bankruptcy.
Can a debt collector wipe your bank account? ›
If a debt collector has a court judgment, then it may be able to garnish your bank account or wages. Certain debts owed to the government may also result in garnishment, even without a judgment.
Can someone collect on a 20 year old debt? ›
The statute of limitations is a law that limits how long debt collectors can legally sue consumers for unpaid debt. The statute of limitations on debt varies by state and type of debt, ranging from three years to as long as 20 years.
Is a paid collection better than an unpaid? ›
A fully paid collection is better than one you settled for less than you owe. Over time, the collections account will make less difference to your credit score and will drop off entirely after seven years. Finally, paying off a debt can be a tremendous relief to your mental health.
Will collections ever go away? ›
Like other adverse information, collections will remain on your credit report for 7 years. A paid collection account will remain on your credit report for 7 years as well. There is a state exception for residents of New York for which paid collections fall off their credit reports after 5 years.
Should I pay a debt that has gone to collections? ›
It's always a good idea to pay collection debts you legitimately owe. Paying or settling collections will end the harassing phone calls and collection letters, and it will prevent the debt collector from suing you.
Can I pay original creditor instead of collection agency? ›
Working with the original creditor, rather than dealing with debt collectors, can be beneficial. Often, the original creditor will offer a more reasonable payment option, reduce the balance on your original loan or even stop interest from accruing on the loan balance altogether.
How much in collections is bad? ›
A collection on a debt of less than $100 shouldn't affect your score at all, but anything over $100 could cause a big drop. In many cases, it doesn't even matter how much it is if it's over $100. Whether you owe $500 or $150,000, you may see a credit score drop of 100 points or more, depending on where you started.
What is a drop dead letter? ›
You have the right to send what's referred to as a “drop dead letter. '' It's a cease-and-desist motion that will prevent the collector from contacting you again about the debt. Be aware that you still owe the money, and you can be sued for the debt.
What is called debt trap? ›
A debt trap means the inability to repay credit amount. It is a situation where the debtor could not be able to repay the credit amount.
One of the most rigorous rules in their favor is the 7-in-7 rule. This rule states that a creditor must not contact the person who owes them money more than seven times within a 7-day period. Also, they must not contact the individual within seven days after engaging in a phone conversation about a particular debt.
What percentage should I offer to settle debt? ›
Start by offering cents on every dollar you owe, say around 20 to 25 cents, then 50 cents on every dollar, then 75. The debt collector may still demand to collect the full amount that you owe, but in some cases they may also be willing to take a slightly lower amount that you propose.
Can collections hurt you? ›
Collection accounts have a significant negative impact on your credit scores. Collections can appear from unsecured accounts, such as credit cards and personal loans. In contrast, secured loans such as mortgages or auto loans that default would involve foreclosure and repossession, respectively.
Why you should never pay a charge-off? ›
A charge-off can lower your credit score by 50 to 150 points and can also look very bad on your credit report. It signals to potential lenders that you could skip out on your debt obligations for extended periods of time. It also shows that you may never pay debt off if the charge-off remains unpaid.
What's the worst a debt collector can do? ›
While debt collectors can't threaten you or mislead you, they can apply pressure to collect payment. This pressure can include daily calls, frequent letters, or talk about pursuing a lawsuit for payment on the debt — as long as they stay within the bounds of the law.
Can I dispute a debt sold to a collection agency? ›
Can you dispute a debt if it was sold to a collection agency? Your rights are the same as if you were dealing with the original creditor. If you don't believe you should pay the debt, for example, if a debt is statute barred or prescribed, then you can dispute the debt.
What is a goodwill letter asking for forgiveness? ›
What is a Goodwill letter? Generally, Goodwill letters are also known as forgiveness removal letters. It is a letter you may send to your creditor requesting that they take a bad entry off of your credit reports. You can certainly repair your credit by writing a Goodwill letter to a creditor, which is quite simple.
What are 609 letters? ›
A 609 letter is a credit repair method that requests credit bureaus to remove erroneous negative entries from your credit report. It's named after section 609 of the Fair Credit Reporting Act (FCRA), a federal law that protects consumers from unfair credit and collection practices. Written by Natasha Wiebusch, J.D..
Can you make monthly payments to debt collectors? ›
If you can't pay a large lump sum, you can ask the collection agency to create a payment plan you can afford. You'll need to negotiate how many payments will be required before the debt is settled.
How do you beat a debt collector? ›
Summary: If you're being sued by a debt collector, here are five ways you can fight back in court and win: 1) Respond to the lawsuit, 2) make the debt collector prove their case, 3) use the statute of limitations as a defense, 4) file a Motion to Compel Arbitration, and 5) negotiate a settlement offer.
A debt collector in collecting a debt, may not harass, oppress, or abuse any person. Specifically, a debt collector may not: Use or threaten to use violence or other criminal means to harm the physical person, reputation, or property of any person.
What is debt shaming? ›
One controversial tactic in debt collection is a relatively new term, debt shaming. This involves some level of public disclosure by the collector to bring attention to a debtor who has not satisfactorily paid their debt.
Which debt dies with you? ›
No, when someone dies owing a debt, the debt does not go away. Generally, the deceased person's estate is responsible for paying any unpaid debts. When a person dies, their assets pass to their estate. If there is no money or property left, then the debt generally will not be paid.
What's the worst debt you can have? ›
The worst type of debt: Payday loans
If you run out of cash and can't pay your bills until your next payday, you take out a short-term loan intending to pay it back on payday.
What is worse than being in debt? ›
Worse than being in debt is losing your peace.
It's called being human. For some people that adversity takes the form of being in debt. The main thing is to keep your peace, to know that God is taking care of each of us, and to remember to trust Him to provide.
What type of bank accounts Cannot be garnished? ›
Bank accounts solely for government benefits
Federal law ensures that creditors cannot touch certain federal benefits, such as Social Security funds and veterans' benefits. If you're receiving these benefits, they would not be subject to garnishment.
How can I protect my bank account from debt collectors? ›
There are four ways to open a bank account that no creditor can touch: (1) use an exempt bank account, (2) establish a bank account in a state that prohibits garnishments, (3) open an offshore bank account, or (4) maintain a wage or government benefits account.
What states prohibit bank garnishments? ›
What States Prohibit Bank Garnishment? Bank garnishment is legal in all 50 states. However, four states prohibit wage garnishment for consumer debts. According to Debt.org, those states are Texas, South Carolina, Pennsylvania, and North Carolina.
Is a 10 year old debt still be collected? ›
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
How do I know if my debt is time barred? ›
Here's how to find out if your debt is time-barred: Get a copy of your credit report. Get a free copy of your credit report from the three major credit bureaus at www.AnnualCreditReport.com. Determine your last debt payment.
You're still liable for your bill even after it's sent to a collection agency. Many people don't want to pay collection agencies, perhaps because there's no immediate benefit for paying off the debt—other than ending debt collection calls.
Should I pay off derogatory accounts? ›
Derogatory mark: Account charge-off
What to do: Try to pay off the debt or negotiate a settlement. While this won't get the charge-off removed from your credit reports, it'll remove the risk that you'll be sued over the debt.
What is the 11 word credit loophole? ›
In case you are wondering what the 11 word phrase to stop debt collectors is supposed to be its “Please cease and desist all calls and contact with me immediately.”
What happens if you can't pay debt? ›
Your debt will go to a collection agency. Debt collectors will contact you. Your credit history and score will be affected. Your debt will probably haunt you for years.
What happens to your debt after 10 years of not paying it? ›
In most cases, the statute of limitations for a debt will have passed after 10 years. This means a debt collector may still attempt to pursue it (and you technically do still owe it), but they can't typically take legal action against you.
What happens after 6 years of not paying debt? ›
There's no time limit for the creditor to enforce the order. If the court order was made more than 6 years ago, the creditor has to get court permission before they can use bailiffs.
Does unpaid debt go away after 7 years? ›
Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit scores may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.
What happens if you don't pay your debt for 3 years? ›
Your credit report will show a "bad debt," which means the lender has given up trying to recover the money from you. The lender typically sells the debt to a third-party collection agency instead. Although the lender stops trying to recover the debt from you, the collection agency now attempts to do so.
Should I pay a 9 year old debt? ›
A: If a delinquent debt is more than 10 years old, it should have already fallen off your credit report. If not, dispute it with the credit bureaus. Also, chances are those old creditors can no longer legally collect that debt from you.
How do I know if a debt is statute barred? ›
Once the limitation period is running, a simple contract debt will normally be statute-barred if: the creditor has not already started a county court claim for the debt; and. you or anyone else owing the money (if your debt is in joint names) have not made a payment towards the debt during the last six years; and.
Debt doesn't usually go away, but debt collectors do have a limited amount of time to sue you to collect on a debt. This time period is called the “statute of limitations,” and it usually starts when you miss a payment on a debt. After the statute of limitations runs out, your unpaid debt is considered “time-barred.”
What happens to your debt if you disappear? ›
Generally, the deceased person's estate is responsible for paying any unpaid debts. When a person dies, their assets pass to their estate. If there is no money or property left, then the debt generally will not be paid.
Can you negotiate with debt collectors? ›
Debtors can negotiate with debt collectors to pay less than the amount they owe. Still, paying the full balance owed may be your best option, especially where your credit score is concerned.
What do you call someone who doesn't pay their debts? ›
“insolvent”, in relation to a debtor, shall be construed as meaning that the debtor is unable to pay his or her debts in full as they fall due.
