Ignoring the Calls Won't Make Debt Go Away

After you've settled the debt, keep a record of the settlement and all your correspondence. My advice: Hang on to the paperwork forever. Often old debts get sold and then resold, and it's possible the information may not get passed along to the new collection agency or attorney. Years later, you might start getting calls about a debt you have long since settled.

There is generally a statute of limitations in which a debt collector can sue to collect on an old debt. The statutory time limit on certain consumer debt varies by state. Keep this in mind, however: Even if debt collectors can't sue you in court for the debt, they still have the right to collect what is owed.

Here are some other tips from the National Association of Retail Collection Attorneys:

¿ Don't be intimidated into paying a debt that is not yours. You have the right to request verification of the debt. If there has been a mix-up or you are the victim of identity theft, be prepared to show proof. For example, with identity theft, you will probably be asked for a police report. That's why it's important to file such a report in identity-theft cases.

¿ If you have a lawyer, have him or her contact the collection attorney. Once this step is taken, the collection attorney can only communicate with your attorney, not directly with you.

¿ Don't ignore a summons from a court. Markoff said that if you contact the creditor before the court date, you may be able to avoid legal action by working out a payment plan. Certainly that's better than having your pay garnished or funds snatched from your bank account.

All these tips lead to one thing -- communication. Avoiding a call from a collector won't make the debt go away. As Markoff said, "Debts don't improve with time. They are not like fine wine."

¿ On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

¿ By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

¿ By e-mail:singletarym@washpost.com.

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