Many people in Colorado and elsewhere have had a rough time of things financially the last few years. Whether it's falling behind on mortgage payments or seeing credit card debt rising to a point nearly out of reach, many Colorado residents are finding that filing bankruptcy may be a viable option to resolve their financial problems. But there may be something about their debts that they don't know.

A recent case settled with the Federal Trade Commission regarding a company's alleged deceptive practices with consumers over the collection of old debts sheds some light on the issue. It's getting harder and harder to collect good information on old debts--ones that are several years old. And what consumers might not know is that debts that have surpassed their statute of limitations are no longer fair game for debt collectors. At that point, debts are labeled time-barred and no longer subject to collection.

The rules around the collection of older debts are not well known either, at least among consumers. One point worth remembering is that the laws of many states allow the clock to be reset on the collection of debts when even a small payment is made toward the debt. This would mean that even though a consumer is thinking he or she is doing the right thing by trying to decrease their debt, they might be doing themselves harm in the long run.

Every person's situation is different, however, so anyone in Colorado who is concerned about their personal credit card debt may wish to consult with an experienced personal bankruptcy attorney.

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