topic Re: Time Limit for Collection Agency to Pursue Lawsuit in Bankruptcy

Time Limit for Collection Agency to Pursue Lawsuit

Garland_Russell — Sun, 17 Sep 2023 03:32:12 GMT

Once a creditor or collection actually files a lawsuit to collect a debt, how long do they have to actually follow through on it? I'm not asking about the statute of limitations to file a suit; I'm wondering how long the suit remains active, or valid, or whatever without the plaintiff actually going forward with it.

Thank you...

Re: Time Limit for Collection Agency to Pursue Lawsuit

Horseshoez — Sun, 17 Sep 2023 04:25:00 GMT

@Garland_Russell wrote:
Once a creditor or collection actually files a lawsuit to collect a debt, how long do they have to actually follow through on it? I'm not asking about the statute of limitations to file a suit; I'm wondering how long the suit remains active, or valid, or whatever without the plaintiff actually going forward with it.

Thank you...

I'm not sure I fully understand your question; as far as I know, once the suit is filed, they are going through with it.

Re: Time Limit for Collection Agency to Pursue Lawsuit

Cowboys4Life — Sun, 17 Sep 2023 05:16:39 GMT

@Garland_Russell wrote:
Once a creditor or collection actually files a lawsuit to collect a debt, how long do they have to actually follow through on it? I'm not asking about the statute of limitations to file a suit; I'm wondering how long the suit remains active, or valid, or whatever without the plaintiff actually going forward with it.

Thank you...

Once the suit is actually filed with the court the creditor isn't really in control of how long the process takes in most states. Depending on the jurisdiction it can take 2 years or more to actually get to trial. A good example is LA County in California. The courts are so busy and backed up when a debt lawsuit gets filed multiple hearings are set stretching out 2-3 years before the actual trial including discovery, case updates, service, and a hearing on dismissal if the Plaintiff hasn't done what they are supposed to or default judgment if the Defendant is served and doesn't answer. In other states like Georgia where you have Magistrate Court even in large busy counties once a Defendant is served the case is usually set for trial within 30-60 days maximum. That said if the suit is filed, Defendant properly served then nothing happens for a year or more the Defendant can move for dismissal and/or the court can order a dismissal for want of prosecution and failure to move the case forward.

There are a few states that have what is known as pocket docket. The best known one is Minnesota. That is very very different and the Plaintiff serves papers on the consumer but the case isn't actually active until the consumer files everything with the court. If the consumer doesn't file it then it is an automatic default judgment. It is weird and very creditor friendly in states with pocket dockets.

Re: Time Limit for Collection Agency to Pursue Lawsuit

FireMedic1 — Sun, 17 Sep 2023 15:40:23 GMT

Once a suit is filed. You should be served papers. Some dont get them. They find out by mail from a lawfirm. But you should contact the creditor or law firm ASAP. If you miss the court date. A judgement can be filed and it can go for 10 yrs. Which could include wage garnishment. Been there done that in the 90's.

Re: Time Limit for Collection Agency to Pursue Lawsuit

hoosier64 — Sun, 17 Sep 2023 17:40:26 GMT

You will need to check the Rules of Trial Procedure for the court that is handling the case. Most, if not all, states should have a rule that allows dismissal of a civil suit if the plaintiff fails to prosecute their case, and the Rules of Trial Procedure for your state may have a time limit (e.g. 60 days). Judges have discretion whether to actually dismiss the case (with or without prejudice), so it's not guaranteed you would win a motion to dismiss even if there is a fixed time limit for the plaintiff to take action.