Haryana Judicial Service (Civil Judge) Prelims 2010 Previous Year Question Papers with MCQ Answers

Time-barred debt is a debt that has passed the statute of limitations and cannot be collected under debt collection laws. The statute of limitations for collecting debt payments typically ranges from three to six years, depending on the state. The statute of limitations can also vary according to the type of debt.

Based on this definition, the correct option is D: none of the above.

A time-barred debt cannot be claimed as a set-off, as a counter claim, or as a fresh suit, because the creditor or the debt collector has no legal right to enforce the debt. However, this does not mean that the debt is erased or forgiven. The debtor still owes the debt, but the creditor or the debt collector cannot sue the debtor for it. The debt can also continue to harm the debtor’s credit score until it is removed from the credit report after seven years from the date the debt first became delinquent.