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After the creditor or collection agency does not hold the original contract, they are filing the collection suit based on the theory of evidence by account (majority of collection cases utilising mostly billing statements to prove up the debt). Under a PIP collection suit based on an account stated theory, the suit must be filed within five years (or less) after the date of the charge-off or default. Do you want to learn more? Visit Debt Recovery

Some creditors find their efforts are bogged down because any debtor who has not been served with a debt collection lawsuit cannot be sued in any court or agency under most circumstances. The utility of collecting old debt at a later date has become so high to the collection agencies that some have begun purchasing old debt knowing it is past the statute of limitation to sue and rely on aggressive collection tactics. When collection agencies win their suit because it is the only source of revenue for the company, it is because of the default judgement. This means that the debtor failed to respond to the suit by filing an answer and appearing at the hearing. Unfortunately, a lot of times, these kinds of lawsuits are brought on out of medical necessity. If the customer or debtor hadn’t responded to the creditor or the collection agency, the creditor or collection agency would have had to appear in court and present legal evidence that they owned the debt in question and that the suit they filed was proper. It may have been dismissed by the judge in the debt collection case because it was filed beyond the statute of limitations. As soon as a judgement has been received, even one that has been entered without your knowingly, you will have had to deal with the repercussions for the rest of your life. The creditor or collection agency is going to try to collect the judgement through wage garnishment, bank account levy, or other taking of money.