Is there a limitation on time and can a debt be reopened if declared?
Full Question:
In 1992, I made a purchase for $400. I didn't pay the whole debt off. In 1996 the company declared the debt noncollectable. The store I bought it from went out of business. I recently paid off a huge debt. I just received a collection notice about that debt from 1992. What was ironic is it is the same collection company I just made this large payoff to. I thought the debt declared "noncollectable" was long closed. This is the first time I have heard from them about that $400 debt. Is there a limitation on time and can a debt be reopened if declared "noncollectable, charged off"?
09/20/2007 |
Category: Debts and Credit |
State: Ohio |
#8903
Answer:
A "charge-off" means the creditor writes off the account balance as a "bad debt." It usually happens after six months of non-payment. After that, it is no longer included in their accounting books as an asset. However, you still owe the money, the creditor has just been forced by the rules of accounting to zero out the debt on their financial ledgers. The following are statutes of limitation for collecting a debt in Ohio, which run from the time payment was due:
Open Account (credit cards) 4 years
Written Contract: 15 year
Domestic Judgment: 21 years (renewable)
Foreign Judgment: 21 years (renewable