Fidelity Creditor Service’s CEO Clint Sallee was quoted in an Oct. 15, 2013 article by Credit Solutions discussing the statute of limitations in bad debts, or zombie debts, and ways the statute of limitations can be extended, and debt collectors can continue going after the debt even after the time has passed.
Sallee told the publication that statutes of limitations are not often extended.
“Very rarely do statutes get extended,” says Sallee. “The reason being is that people who make payments want to pay the debt off, and those who don’t make payments don’t want to pay the debt off.”
There are a few ways in which with a court order obtained before the statute of limitations on debt runs out that debt collectors can attach assets of the debtor, such as garnishing wages, bank accounts and putting liens on homes.
“The statute of limitations is also extended when a plaintiff wins a court order, with a judgment being good for 10 years,” Sallee said. “The judgment can be renewed every 10 years until the debt is paid.”