Totally false peli. Contract law is contract law regardless of what the collectors tell you moron
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Bankruptcy or charge off ???
- Thread starter riddler
- Start date
Quote from Zentrickster:
Totally false peli. Contract law is contract law regardless of what the collectors tell you moron
I agree- total falsehood. The SOL is specific- depending on your state it stops after a certain period of inactivity. Calling you to ask about the debt does not reset the clock. A payment on the account will.
Read this: http://en.wikipedia.org/wiki/Fair_Debt_Collection_Practices_Act
Post your questions here: http://www.creditboards.com
Ignore everything written by peilthetraveler
Post your questions here: http://www.creditboards.com
Ignore everything written by peilthetraveler
Indeed. Most debt collection companies now are looking to settle for something, ANYTHING to get from you. $.50 on the dollar is average. In fact, many are working with or are subsidiaries of the cc company.
I have ICO which is part of AMEX offer me $.25 on the dollar for a ~8,000 account. Still won't take it; I also don't have the money as I work my way into business profitability and owe on other accounts still. (got a little careless when young).
Better to keep the money now then settle, unless you can settle both. Settling one and not the other does you no good.
As for judgments, yes it can impose one typically through a "local" attorney's office to you. If it's deemed your assets don't meet your liabilities (i.e. you're considering bankruptcy and the like), then they most likely won't go after you and just "keep the judgment running." Check to make sure you're eligible for bankruptcy too in the end.
I've been through a judgment twice on a ~3,000 account. Waste away a couple of hours in your local courthouse as I was there with like 85 other people. Worst they do is continue the judgment for another 3 months when it's deemed you can't owe anything. The garnishing the check bit and whatnot is a bit more myth then fact; could it be done? Only if it's deemed you make enough and your bills are low.
The kicker on settling is to make sure it's reported right on your credit report, otherwise it's practically for naught. Call the original creditor when you have enough to pay on both and negotiate to get it taken off (charge off's stay on for 7 years I believe) as long as you pay it (not the full amount, start low and negotiate no higher then say 60 cents on the dollar).
I have ICO which is part of AMEX offer me $.25 on the dollar for a ~8,000 account. Still won't take it; I also don't have the money as I work my way into business profitability and owe on other accounts still. (got a little careless when young).
Better to keep the money now then settle, unless you can settle both. Settling one and not the other does you no good.
As for judgments, yes it can impose one typically through a "local" attorney's office to you. If it's deemed your assets don't meet your liabilities (i.e. you're considering bankruptcy and the like), then they most likely won't go after you and just "keep the judgment running." Check to make sure you're eligible for bankruptcy too in the end.
I've been through a judgment twice on a ~3,000 account. Waste away a couple of hours in your local courthouse as I was there with like 85 other people. Worst they do is continue the judgment for another 3 months when it's deemed you can't owe anything. The garnishing the check bit and whatnot is a bit more myth then fact; could it be done? Only if it's deemed you make enough and your bills are low.
The kicker on settling is to make sure it's reported right on your credit report, otherwise it's practically for naught. Call the original creditor when you have enough to pay on both and negotiate to get it taken off (charge off's stay on for 7 years I believe) as long as you pay it (not the full amount, start low and negotiate no higher then say 60 cents on the dollar).
Quote from peilthetraveler:
First of all...it gets reset as often as they want it to be reset as long as its not paid. It goes off your record 7 years after you pay it off. If you never pay it off, they can keep it on your record indefinately. The statute of limitations is only how long they can sue you afterwards. You might get lucky though and they forget about you after so many years, but even if you are at the bottom of a pile somewhere, they will sell your debt to someone eventually and then that new credit agency will come after you.
every word in this post is wrong.........
make them prove the debt if they ever start harassing you....the idiot collections agencies will not be able to.
Take it from a guy with experience. My first marriage 23 years ago to a disaster left me in 50K hock in only 13 months. I was making peanuts and was hounded by collection agencies all day long.
I did learn a few things.
If you settle, BE SURE YOU GET IT IN WRITING. The letter should include that it will be reported to the credit bureau as a paid account. I learned this the hard way with one creditor. I settled for half and did not get it in writing. I paid it but the account was not marked as paid. That agency sold it to another agency and they hounded me for years afterward trying to collect the other half.
A paid charge off is better than an unpaid charge off when it comes to your credit report.
An unpaid account can stay on your credit report past 7 years. It is based on the Date of Last Activity on the account. The creditor can update the account on your report and the counter starts over again. If you make a payment, that resets the counter.
I can never in good conscious tell somebody not to pay a debt, but if you choose that route, make no contact with them ever. They will eventually charge it off. If you ever try to buy a house though, the lender might make you pay your unpaid charge offs though.
Don't do a BK.
I did learn a few things.
If you settle, BE SURE YOU GET IT IN WRITING. The letter should include that it will be reported to the credit bureau as a paid account. I learned this the hard way with one creditor. I settled for half and did not get it in writing. I paid it but the account was not marked as paid. That agency sold it to another agency and they hounded me for years afterward trying to collect the other half.
A paid charge off is better than an unpaid charge off when it comes to your credit report.
An unpaid account can stay on your credit report past 7 years. It is based on the Date of Last Activity on the account. The creditor can update the account on your report and the counter starts over again. If you make a payment, that resets the counter.
I can never in good conscious tell somebody not to pay a debt, but if you choose that route, make no contact with them ever. They will eventually charge it off. If you ever try to buy a house though, the lender might make you pay your unpaid charge offs though.
Don't do a BK.
Otally wrong and miss informed. Only a payment from the consumer can reset the statute. Although I even question this. The statute cannot be reset by the creditor due to activity. They will tell you this but a letter from a law firm should set them straight