Filed under: Finance

When a debt collector contacts you about an old debt, do you have to pay that debt? To a certain extent it depends on how long the debt has been in default and what kind of debt it is.

The states have various legal guidelines as to when the clock on the debt statute of limitations starts ticking. In the majority of cases, however, it starts from the time the debt first becomes late. Other states start it from the point where the creditor first attempts to collect the past due amount.

Since each state has its own rules regarding statute of limitations, based on where the debtor lives, the statute of limitations can be from as little as 2 years to as much as 10 years or more.