2006-07-07 16:03:29 · 7 answers · asked by mattd1087 1 in Business & Finance ➔ Credit
You will always owe them unless you file for BK, which I dont suggest unless it is the last option. Sometimes the creditor will sell the defaulted loan to a collection agency who then will hound you until they get something. You are better off trying to work with the creditor to work out a settlement or payment program.
2006-07-07 16:27:31 · answer #1 · answered by Hawkman 2 · 0⤊ 0⤋
No, the answer is not 7 years !
The answer is you will ALWAYS be responsible for the debt - unless, as noted, you file for bankruptcy.
The state statute of limitations DOES NOT stop collections, except in 2 states WI and CA. The statute of limitations varies by state and it is the amount of time that a creditor has to sue you to enforce collection of debt. Once that SOL runs out, they can still sue you (except in WI or CA) but the expired SOL is your affirmative defense to use to get the lawsuit thrown out.
The SOL is a defense IN COURT, it is NOT a bar on collections or lawsuits.
The 7 years PLUS 180 days that a bad debt stays on your credit reports has NOTHING to do with your liability for any debt. Just because it drops off your reports it does NOT mean the debt is no longer due !
2006-07-08 04:44:47 · answer #2 · answered by SciFiDiva 2 · 0⤊ 0⤋
I think legally the creditor has to leave you alone after 7 years. BUT there's a loophole, if they sell your debt to a new agency, it's considered new debt, and the next collection agency gets another 7 years to hound you (and so on).
Try disputing it with the credit bureaus online. They will require the collection agency to prove the debt is legitimate. Collection agencies are usually so poorly run that they won't respond within 30 days, and it gets removed from your credit report automagically.
2006-07-07 18:30:19 · answer #3 · answered by Need to Know 2 · 0⤊ 0⤋
You need to look up the statute of limitations for collecting in your state.
For example, if your statute of limitations is 3 years and you are past that, they cannot legally sue you. They may continue to try to collect, but you are not legally bound to pay them.
If you are still within the statute of limitations, they can continue to collect, which means they could sue if they wanted to.
It does not matter if they retain the debt or sell it to collection agencys, the SOL remains the same. Unless you happen to make, or attempt to make, a deal with them, that may reset the SOL. But, that also depends on your state statutes.
Check out the link I've provided and do some reading in the forums. You can find your states statute of limitations on there.
2006-07-07 20:12:21 · answer #4 · answered by echo 7 · 0⤊ 0⤋
You'll have to pay it no matter what, but if you go through a consolidation service or work out payments with their collectors, you'll get a bad debter notice on your credit that will stay there for seven years, A bankruptcy will stay for 10 yrs now. And if the credit card is MBNA- pay the sucker off. They get their lawyers on it & will take you to court & get their money from your employer or taxes.
2006-07-07 17:33:57 · answer #5 · answered by pritigrl 4 · 0⤊ 0⤋
My creditors had until I filed for bankruptcy
2006-07-07 16:10:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
The answer is 7 years and they will certainly come after you for their money before the 7 years lapses unless you move and they can't locate your whereabouts.
2006-07-07 21:20:54 · answer #7 · answered by rodaerc06 3 · 0⤊ 0⤋