In the last four weeks I have had three clients come in with lawsuits from Debt Buyers on debt over six years old. Two of the Lawsuits were by Midland Funding. You need to be aware of the fact that under Michigan Law suit on a contract claim, such as a credit card debt or other promise to pay, has to be brought within 6 years of the breach. A breach occurs when you stop paying. So if you have not paid on a debt for over 6 years and have not acknowledged that you owe the debt, you have a legal defense to the debt. However, if you don’t raise that defense in response to the lawsuit the debt collector will get a judgment against you and you will end up owing on the debt. Make sure you raise the defense “Plaintiffs claim is barred by the applicable Statute of Limitations” in your answer and make sure you answer within 21 days of personal service.
