[dddd]

I received a notice from a lawyer regarding an old credit card debt - threatening a lawsuit and giving me 30 days to respond. I believe that the statute of limitations has passed (it's been over 4 years since I paid on this account). What should I do now?

Also if it goes to court and a judgement against me is issued--can they take money from a checking account out of state? And I am listed on a non-profit organization's checking account - would that account be in jeopardy?

[mr.yet]

Send them a letter disputing their claim, and demand proof of the alleged debt. The must send you validication of the debt.

Demand a certified copy of the original contract you signed, complete accounting of the alleged debt, show all payment activity, including date of last alleged payment.

Read this:

Debt Collection Practices: When Hardball Tactics Go Too Far

[dddd]

Thank you for the advice, and the link. Do you have an answer for my second question also? Can they garnish a checking account in another state or from an account for a non-profit organization where I am listed?

[mr.yet]

They would haveto transfer the judgment to your state, now they can only garnishment your personal accounts, not business accounts if the are incorporated, LLC etc, Sole proprietor account they can.

[ScottGem]

This was just a letter from the lawyer, right? It wasn't a court summons? If it was just a letter from the attorney, double check the statute of limitations, if it has past, then write the attorney that since the SOL has passed, they have no ability to sue you. Therefore, their threats are empty.

However, if the debt is valid, you have a moral obligation to pay. You borrowed the money with the promise to repay it. They have every right to dun you for the money. If you can afford a lump sum settlement, You might make an offer AFTER they prove they have a right to collect. But be careful, in some places offering a settlement could restart the SOL.

Also the checking account is not in your name, you are proably only listed as an authorized signator. If that's the case, they can't attach it.

[dddd]

Yes, it is just a letter, not a summons. From what I have read, in Georgia the Statute of Limitations begins on the date of default, not on the date of last payment. This won't necessarily be the date shown on a credit report will it? I made my last payment to them in June 2003, but I was behind before then.

[mr.yet]

Default
1. The failure to promptly pay interest or principal when due.

2. The failure to perform on a futures contract as required by an exchange.

Investopedia Says: If you can't make the monthly loan service payments then you are said to have "defaulted" on the loan.

[ScottGem]

Date of default could be the first missed payment. So if the SOL is 4 years, they are on the edge.

[dddd]

Either way --from the date I missed a payment (July 2003) or when I first became "default" by being late --the Statute of Limitations should be over now, right?

[ScottGem]

It is 4 years you are on the bubble. They may not have declared the loan in defualt until several months of non payment.