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I have been contacted by a debt collector. The credit card debt I owe on is well over 6 years old if not more. I live in California. Can they still sue me and recover? I am self employed and don't have a steady income.They can't garnish my wages. What should I do?
In California, the Statute of limitation for written contract, promissory notes and open ended accounts is 4 years and for oral agreements it is 2 years. Now, since it is a credit card debt, the SOL would be 4 years and this 4 year will start after 6 months from the date of your last payment towards the debt. Now, since the debt is 6 years old, you need are legally not liable to pay off the debt.
Your wage or bank account can be garnished only if the creditor can bring judgment against you. But if the Statute of Limitation on the debt has expired, the creditor cannot bring judgment against you to recover the debt. But if you make even a small payment towards the debt, the SOL clock will restart and the creditor can sue you to the court and garnish your wage to recover the debt.