 Know
your credit card debt's limitations
|  Dear
Bankruptcy Adviser,
Is there a statute of limitations on a credit card
debt? If so, when does it become effective? -- Maureen
 Dear
Maureen,
There is a statute of limitations on credit card
debt, Maureen. It varies from state to state. In California, it's
four years -- and this part is very important -- from the last date
of payment, or the last date of use.
Let's suppose you have some debt and the statute of limitations
(in your state) has run out. Typically, creditors will continue
to try to collect from you. Some might lie to you and tell you that
the four-year period begins when they bought the debt. Some might
even sue you -- and without asserting yourself and your rights,
you might lose.
To win this particular game you must get documentation. What you
want, and what the original creditor is legally obligated to supply,
is proof of the most recent payment or credit card usage. Be patient
as you maneuver through the creditor's customer support. Be persistent
when they tell you "Sorry, we don't have those records anymore,"
or, "Sorry, our dog ate your records," or whatever excuse
they offer. Keep asking.
If the creditor refuses to send you the documentation, then go online
to your local court Web site and file a document usually titled,
"Small Claim Subpoena -- For Personal Appearance and Production
of Documents and Things at Trial or Hearing and Declaration."
You will need to have this document sent through certified mail
to the creditor and the attorney representing the creditor. Then
the court will have notification that the creditor is not cooperating
and will likely dismiss the case.
Suppose, however, that you get the document and that the statute
of limitations has run out. Be careful -- you're not done yet. If
you are sued then you want to appear before a judge. If you are
asked to consent to a pro tem attorney, say "No." Only
agree to have your case heard by a judge. Although most pro tems
will find for you, many times the pro tem attorney will want to
remain in good standing with the court and will want to protect
creditor interests. Many times, a pro tem might not be adequately
informed on a particular issue and will simply continue the case
or even find for the creditor. Therefore, you want a judge officially
appointed to your court to hear the case.
Justin Harelik
is a practicing bankruptcy lawyer in the Los Angeles office of Price Law Group.
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