I had a car loan in 1997 in New York. I was unable to keep up the car payments. The car was repossed in 1998 and sold for a cheaper amount than I paid. I now live in Maryland. It is now 2008 and I just received a collection notice from a law firm in Pennsylvania requesting a payment for $6,600. I understand that the bad debt was sold to a collection agency and the company has already written this off their books. My question is isn't there a statue of limitation for collecting a bad debt. Can this collection agency legally pursue the collection of this debt.