Should you Hire an Attorney to Settle Your Debts? | McCarthy Law
November 7, 2016

Should you Hire an Attorney to Settle Your Debts?

Did you know that in the state of California, a debt collector can no longer collect debt if it is already more than four years old? Did you also know that a debt collector can trick you into owing the full amount of that debt even after four years, or even if you no longer have to pay for it?

A recent article warns consumers about these “zombie debts” that can rise from the dead if you are not careful, or if you are unaware at all.


The “statute of limitations” is a concept in law that encourages a party to act on their legal rights rather than sit on them for many years. It promotes fairness because disputes, like credit card debt, can be forgotten over time. In the state of California, the law says that if a creditor does not act on the debt in four years, they lose their right to collect that debt.

However in contract law, a creditor can legally trick a debtor into forming a new contract after that four year period. This new contract often looks like an obligation to pay the old debt, designed to trick the debtor into paying an amount that they legally no longer have to pay.

Do not let a lack of legal knowledge prevent you from successfully getting out of debt. Contact a knowledgeable debt settlement attorney to review your debt and settle it for good.

Check us out if you decide to hire an attorney to settle your debts.

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