[clkellogg]

I had a credit card through bank of america approximately eleven years ago, still owing a balance of three thousand. It went on my credit report, however after receiving a copy of my report it shows that account has been charged off and is closed. Today I receieved a phone call from a collection agency stating that my wages or my income tax was going to be garnished for the remaining balance. Can they do this if they account has been closed.

[twinkiedooter]

They can call you up all they want to but they won't prevail in Court as the statute of limitations after 11 years has expired. What they did was essentially "buy" your debt for pennies on the dollar and are attempting to make a killing off you.

The next time they call you up tell them to put it in writing and politely hang up. After they send you something in writing, they will probably call you a month or so later. Say the same thing and hang up.

Trust me, they're not going to call or write you again as you aren't "playing ball" with them and they'll call someone else who is scared to death about having their wages garnished, etc. and start paying them something thereby opening up the debt and allowing the collection company to skirt the statute of limitations as you paid something on the debt. Collections agencies must file a lawsuit in order to attach your wages or income tax refund and collection agencies can't do that - only lawyers working for the collection agency can.

Don't fall for the line the guy from the collection agency is feeding you. It's pure baloney.

[ScottGem]

Maybe! The fact that the account was charged off and closed has NO bearing on your obligation to pay the debt. Charging off is an accounting/tax term that just refers to how the debt is treated on the company's books. It has nothing to do with you.

However, 11 years would seem to beyond any state's Statute of Limitations. So it is probably a junk debt collector who bought the debt for pennies on the dollar and is now trying to scare you into paying. They have the right to try to collect on the debt, but, if the SOL has expired, they cannot garnish wages or attach assets.

However, its possible that a judgment was obtained against you, years ago and that judgment is still in force. In which case, they can garnish your salary and attach assets.

So you need to ask them if a judgment was obtained and from what court and get the docket number to confirm whether a judgment exists.

In my opinion a debt is something you are honor bound to repay. So while they may not be able to use legal means to compel you to pay, you might be able to work out a lump sum settlement for half the actual debt.

Do not, however, offer any settlement until you are sure of the legal grounds.