If a 5-year-old credit card debt of 1350 from AL has been sold to a new collection agency who is threatening to turn in the debt for litigation is it just a threat even if you live overseas now?

Answer 1

The Alabama SOL for open accounts (credit cards) is three years, a lawsuit could be filed but could not be won by the creditor. However, the burden of using the expiration of the SOL claim falls upon the debtor, it is not an automatic defense. It is highly unlikely a creditor would pursue litigation under such circumstances. Unfortunately, there are many unethical collection agencies (including legal firms) that purchase debts for which the SOL has expired and then try to intimidate the debtor into agreeing either verbally or by written agreement to repay or settle the debt, thereby nullfying the SOL and making a lawsuit possible.