Debt seems like a simple concept: I borrowed money from A that I will have to pay back later. Although the concept may seem simple, the actual practice of borrowing money and collecting it later can be very complicated. Understanding interest can be complicated enough, but add to it that the "notes" that provide the legal right to collect the debt can be transferred, sold and the debts are most often collected by a third party servicer.

With all of the complexity of debt servicing, abuse is a result that occurs more often than one would hope. The Fair Debt Collection Practices Act (FDCPA) was written to help curb the abuse that occurs when debts are called due. One abuse that often occurs concerns "time-barred debts."

While specific state law differs as to detail, for some debts there is a statute of limitations for when debt can be collected. A time-barred debt is one that was not collected during the allocated time period. When this happens, the lender loses their legal right to sue an individual on the debt.

While there is nothing wrong with lenders attempting to recover their investment, they must notify a debtor when collecting a debt that has become time-barred. The failure to notify a debtor of the time-barred status constitutes a violation of the FDCPA.

As with everything in life, there is always a catch. When it comes to time-barred debt, if the debtor makes even a portion of the payment, the clock may be reset and the debt becomes enforceable once again.

If you are called by a collector on a debt you suspect could be time-barred, you have the right to hang up the phone. Prior to making any payment, consult an experienced bankruptcy attorney who can help you determine what the terms of the debt are and whether it has become time-barred.

Source: The Washington Post, "Have old debts? Read up on your rights," Michelle Singletary, Jan. 31, 2012