Debts placed with third-party debt purchasers have become more common after the financial crisis of 2008. Creditors have resulted to charging off the debt and selling the debt to third party collectors. This process of assignment by the banks and finance companies has often been sloppy at best.
Often the collectors attempt to collect debts that are barred by time under the state statute of limitations. If you fail to act when receiving a summons, they may be able to obtain a judgment even though you have a valid defense under a statute of limitations. You should always contact a skilled attorney when receiving any communication to collect a debt, especially a summons. Even if you believe the debt may have been originally valid, you have a right to know that the person who is attempting to collect the debt has a legal and valid assignment from the original creditor.
A bankruptcy may also be the best remedy to resolve not only your current debt, but old debt as well. Often creditors may obtain a judgment and defer collection on the judgment for many years. They do so in the hopes that by waiting you may later become a more collectable target. When talking with a bankruptcy attorney, make sure that you discuss possible old debt that you may have to be sure that it is included in your bankruptcy so you can truly get a full fresh start.