[lauralg]

I also am being threatened by one of my creditors who has turned my account over to a law firm. They want to take me to court, but I lost my job last fall and have no income. My husband's name is not on any of my accounts. I also don't have any assets in my name that they can fall back on.

I did some research and was wondering if, in fact, I need to appear in court if summoned. I lost my unemployment and have filed an appeal. Just waiting on that issue. I tired of these creditors calling me every day. Is it wise to write to them and ask them to "cease and desist" calling me? Will that cause further problems for myself?

[JudyKayTee]

I also am being threatened by one of my creditors who has turned my account over to a law firm. They want to take me to court, but I lost my job last fall and have no income. My husband's name is not on any of my accounts. I also don't have any assets in my name that they can fall back on.

I did some research and was wondering if, in fact, I need to appear in court if summoned. I lost my unemployment and have filed an appeal. Just waiting on that issue. I tired of these creditors calling me every day. Is it wise to write to them and ask them to "cease and desist" calling me? Will that cause further problems for myself?

If you don't want to hear from them, send them the letter. It's not going to make it any better or worse.

I never advise not appearing - if you receive a Summons. There could very well be an error in the creditor's papers or testimony and the only way to know that is to be there.

Depending on your State a Judgment could last for twenty years so I would defend this if you have any grounds at all. At some point in the next twenty years you may want to buy a house, a car, get a credit card, not have your wages garnished.

[lauralg]

Thanks Judy! I feel it would be in my best interest to appear in court. I owe approximately $1250.00 to this particular creditor. I can't deny that I owe them the money, but like many other posts I've read, these creditors are tacking on late fee after late fee, raising interest rates. I'm hoping the Feds will take a course of action for those of us without a job to limit what a creditor can charge. I heed your advice and will start sending letters out. Thanks!

[JBeaucaire]

If you had to, could you scrape together a few hundred dollars? If you REALLY had to? It hurts nothing to contact them and offer a one-time reduced payment in full.

I had a $5600 medical that blossomed to $8000 when taken over by a "law firm". I scraped through everything I could and put together $2000. I called them and basically said:

"I am unable to accept further action on this debt. I have scraped together $1500 and will send it all to you in exchange for a settlement of this debt in full and without recourse for the remainder.

"If you will agree to this, send me a written notice that you accept a one-time payment of $1500 as payment in full and I will remit the money immediately.

"If you cannot, I will continue my bankruptcy considerations, which will most likely result in your firm receiving much less, if anything at all. Please consider this offer. If refused, I will make the offer to my other creditors prior to any bankruptcy proceedings, I'm sure someone will see the benefit."

They responded asking for $4000, I affirmed the $1500 offer, but said I'd "see what I can do". The responded asking for $3000, I answered I could do $1700, and we settled on $2000, the amount I actually had anyway.

Think about it. If you can come up with 20-35% of what is owed, you may be able to make this go away completely, no judgement at all.

[lauralg]

Thanks for your advice. My problem is, I was previously under a debt management program which involved about 6 creditors. They won't accept minimal payments at this time, and being unemployed, I can't come up with enough to satisfy everyone.

I am working on litigation against my former employer. If it goes through, then I hope I can settle with all creditors. Should know something relatively soon. Thanks again!

[JudyKayTee]

Thanks for your advice. My problem is, I was previously under a debt management program which involved about 6 creditors. They won't accept minimal payments at this time, and being unemployed, I can't come up with enough to satisfy everyone.

I am working on litigation against my former employer. If it goes through, then I hope I can settle with all creditors. Should know something relatively soon. Thanks again!

I have seen collection efforts stopped and interest and fees frozen when the creditor receives a letter from an Attorney guaranteeing payment of $X upon settlement of litigation.

Unless you're out of Statute (or almost out of Statute) this might be a very good idea.

Good luck.

[lauralg]

I do currently have an attorney. I appreciate it because that would definitely help. My lawyer has taken on my case on a contingency basis, so I suppose I have a good chance. Hate getting my hopes up...

I will talk with him next week. So it's possible we can set a settlement amount from the creditors without having to pay the entire balance? Thanks for your help!

[spelkastr]

Could you go into a more detail about the "Unless you're out of Statute or almost, this might be avery good idea? If the statute is or nearly out what is the best approach? Does the statute date start with last purchase to account or date sent to collections? What if a previous collection agency for said debt has been sold to present agency which just sent notification and it has been a year's time since the previous agency sent any reminders? New agency has tacked on about $5000 worth of interest or some fees. No explanation on added fees in their letter. I want to clear this up, am not working now due to surgery and not sure if or when I will be able to return. Thank you in advance for any answers.

[JudyKayTee]

Could you go into a more detail about the "Unless you're out of Statute or almost, this might be avery good idea? If the statute is or nearly out what is the best approach? Does the statute date start with last purchase to account or date sent to collections? What if a previous collection agency for said debt has been sold to present agency which just sent notification and it has been a year's time since the previous agency sent any reminders? New agency has tacked on about $5000 worth of interest or some fees. No explanation on added fees in their letter. I want to clear this up, am not working now due to surgery and not sure if or when I will be able to return. Thank you in advance for any answers.

If the Statute has nearly run do nothing - the Statute runs from the date of the last activity in the account. This could be a charge or a payment. Telephone calls don't count. Often agencies try to convince you to send a couple of dollars. You think they're helping you but, in fact, they are resetting the statute to that date, not the earlier date when you last paid.

Your contract with the original creditor allowed for interest, possibly attorney fees, if the account had to go to collection. This agency or another agency would both have charged interest and it runs as it would on a credit card, against the unpaid balance. They can't charge more (or less, like they ever would) than the contract/State allows.

Sorry about your surgery - fingers crossed it goes well for you.

When was the last activity on the account and what State are you in? I can tell you exactly if it's still a viable account.

Of course the fact that they can no longer sue you doesn't mean they won't keep trying to collect and/or keep turning it over to new agencies. If it is out of statute, then you would write them a letter asking them not to contact you any longer. They are bound by law to do so.

Of course they can turn it over to another agency but then you would write that agency and so forth.

[spelkastr]

Thank you for your quick response & wishing me well.
I live In North Carolina and the latest statement from the credit card company shows payment in May 2007. How often do they pursue a court suit close to the statute of limitations date? Once the statute is up and no suit is brought will the debt still show negative on my credit rating and for how long? My spouse is not on this account will it effect his credit? Also if we apply for a loans etc. jointly would this show up?
Would it be legal for the agency to put a lien on our home or other property owned jointly? What things could I start doing right now to improve my credit rating? When writing the agency or agencies to stop contact do you recommend sending it certified mail? I would definitely keep copies of all correspondence(s).

[JudyKayTee]

Thank you for your quick response & wishing me well.
I live In North Carolina and the latest statement from the credit card company shows payment in May 2007. How often do they pursue a court suit close to the statute of limitations date? Once the statute is up and no suit is brought will the debt still show negative on my credit rating and for how long? My spouse is not on this account will it effect his credit? Also if we apply for a loans etc. jointly would this show up?
Would it be legal for the agency to put a lien on our home or other property owned jointly? What things could I start doing right now to improve my credit rating? When writing the agency or agencies to stop contact do you recommend sending it certified mail? I would definately keep copies of all correspondence(s).



This is an open ended account so the Statute is 3 years from the date of the last activity in the account - last payment, last charge.

It is not unusual for creditor to make a move this close to the statute - once that statute is crossed there is no hope of collecting legally. In fact, depending on the exact date in May the statute may already have run. Do you know?

Yes, the debt will show on your credit report for 7 years. If it goes to Judgment it will show for 10, renewable for 10. No, this will be in your name only. Yes, any time you apply for credit (joint with anyone or individually) this will appear. Yes, a lien could be placed on your home and any other property held in your name. It depends on how "serious" the creditor is about collecting.

Keep in mind that in order to get a lien, garnish your bank account, things of that nature the creditor must first get a Judgment against you. It's not just a "you owe me, I'm liening your property" way of doing business. There has to be a Judgment following a Court proceeding.

No, this debt will not affect your spouse's individual credit.

The best thing you can do - after you find out whether the statute has run - is attempt to settle this debt. Many creditors will take pennies on the dollar but they want it up front. Occasionally they will take payments. You might consider offering 25%/30% of the debt now (if you can) in full settlement. Get the agreement in writing!

Yes, I would notify them by phone AND in writing. I also send all legal papers return receipt requested.

Does that cover it? No problem if you have other questions, no problem at all.

[spelkastr]

I think you have covered most questions here. It is not yet past the date on the latest statement I have (not sure this is the last statement there was).
I may have more questions later once I have absorbed all of the above.
Thank you so much for your time and information.

[spelkastr]

I do have other questions.
Is it legal for collectors to call my spouse' cell, phone ( how they got that I don't know) saying I am deliquent on a bill and how much? My spouse is not on my account.
Is there a way to find out the exact date of activity on my account if I am not sure the statement I have is the one?
Is there a way to stop them from phone communications to me or any of my family and giving out details. They were directing the call to me. Strange they have my spouses' number but not mine.
Since the letter I received earlier this week the amount has risen by $1000.00. Must be some interest rate. Are they allowed to charge interest on the deliquent amount? How do they expect people to pay more if they can't ever catch up?
If I were to offer them a certain $$ figure and they bargain for an amount I cannot handle will the statute date start all over?

[JudyKayTee]

No, by law the ONLY people who can be contacted are the debtors. Advise them to stop calling your husband. Put it in writing if you have to.

The only way to know about the activity on the account is to pull your old checking account statements. If this goes into suit you can request the info. You can request it now but there is no guarantee that they will send it.

Yes, send a letter - or tell them - NOT to give this info to anyone but you.

Yes, interest runs until the debt is paid.

No, the only thing that extends the statute is activity on the account and that is either a payment or a charge. Negotiating changes nothing.

Here are all of your rights (pour a cup of coffee, pull up a chair): http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre27.pdf