Statute of Limitations on department store cards

1. If you defaulted on a credit card 4 to 5 years ago, the statute of limitations in New York has not passed. The CPLR and not the UCC incorporates the statute of limitations involving credit card suits. Suits by credit card companies are considered breaches of contract. Pursuant to CPLR 213, a 6 year statute of limitations applies to the credit card company. 2. You are smart to answer the lawsuit as a default judgment will be entered if you fail to do so. Depending on how you were served, you may have as little as 20 days to answer the summons and complaint. Otherwise, a default judgment may be entered against you. 3. You may be able to raise affirmative defenses to the action in your answer to the complaint, if, for instance, you feel the debt does not belong to you or that it is overstated. You might be able to countersue if you feel that the credit card company violated the Fair Debt Collections Practices Act ("FDCPA") and recover attorney's fees and costs, but other than the statute of limitations, you have not presented any facts in your questions as to any potential violations of the FDCPA. 4. I would suggest that you consult a debt/bankruptcy lawyer to discuss your options. A reputable and knowledgeable attorney can assist you with filing an answer to the complaint and assist you with settling out of court and/or filing for bankruptcy. If the debt is significant and/or you have other debts as well, a bankruptcy filing may be the best course of action. If you qualify for chapter 7, you may be able to discharge all of your credit card, medical and other general unsecured debts for zero (0) payment. Upon the filing, there is an "automatic stay" which means that this third party purchaser as well as other creditors you may have cannot continue to sue you, obtain a judgment, garnish your wages and seize your assets. We, like some other debt and bankruptcy attorneys, offer free consultations for consumer debtors. Best of luck, Barbie D. Lieber