According to New York’s Civil Practice Law and Rules (CPLR) section 213 and understanding that most debts are considered “a contractual obligation or liability,” creditors have six years in which to file a collection lawsuit against a debtor.
The practice of buying “junk debts”—debts that are significantly delinquent and have been given up on by the original creditors—and then attempting to collect on them has grown into a thriving industry worth billions of dollars.
Maybe you filed for bankruptcy once and felt the relief of finally being able to get your life back: your credit card bills were gone, you were able to get back on track with your mortgage payments and, with some luck, you were able to hold onto most of those things that were important to you.
Every year, thousands of people find themselves in a financial situation that seems insurmountable. Even as they struggle to pay their bills and keep food on the table and a roof over their head, they feel themselves sinking deeper into debt.