I haven't paid none of my credit cards for the past 6 years, they all are in collection agencies with tripple the amount I owned to begin with. Now, I finally got a good job and I'm not sure If I should start paying these outrageous amounts or if there is a law that I can erase all this debt. What can I do??
2006-10-25 02:49:57 · 12 answers · asked by Nina G 1 in Business & Finance ➔ Credit
if you start to pay you will restart the statue of limitations clock and they can sue you if something happens. i say forget about them and start by trying to rebuild your credit. use some money and get a secured card and after a couple of months try to get a store card.
2006-10-25 04:16:45 · answer #1 · answered by bella_4624_19 4 · 0⤊ 0⤋
It's great to see so many attempts at a correct answer, but I must step in and correct a few things.
Most debts (and all credit card debts) DO go away after a period of time. It doesn't matter if your account is sold, resold, and resold again, only YOU can change the amount of time creditors have to collect and report on you.
There are two things you need to be aware of: Statue of Limitations and Fair Credit Reporting Act § 605 which dictates how long items can remain on your credit report.
These are two completely different things that have nothing to do with each other. The Statue of Limitations is what determines how long the creditor has to sue you for a debt. If they don't sue you within that time period, they can not ever take legal action against you for that debt (in other words, the debt is now gone).
The FCRA time periods dictate how long a creditor can post negative information about you on your credit reports. If you've gone 6 years without making any sort of payment, then you have about a year left and it will no longer be on your credit report. Nor will any "sold" version of the debt be allowed on your credit report either.
This timeframe can't be reset UNLESS you make a payment. If you make a payment now, it restarts the 7 year period unless:
1) You are never late again with your arrangements
2) You pay it IN FULL (not in settlement) right now.
If you settle on the debt, it will RESTART the 7 years on the date you "settled for less".
On statue of limitations, if you have any contact with them whatsoever that they can prove, it restarts the SoL in most states.
2006-10-25 04:29:07 · answer #2 · answered by dishmal 2 · 0⤊ 0⤋
OK, now let me ask you a question...
When you don't pay a debt, the collection agent gives you a choice. Pay your bill or have your credit history trashed for the next seven years.
You chose to not pay. So for the past six years your credit has been ruined.
Why on earth would you want to pay them now? I'm sorry, but it's silly. And the people telling you to settle are foolish and uneducated.
In reality, every state has a "statute of limitations" where after a certain amount of time you no longer have an obligation to pay the debt.
The creditor has a choice....sue you within that time period, or ignore the debt. They chose to ignore it. Why, then, would you have a "moral obligation" to repay it? Again, that's silly.
In my opinion you have already "paid your debt" to these people. They had their chance to collect and didn't do it.
So read the links below. If they are still calling and harrassing you, send them a cease and desist letter so they will no longer bother you.
Contact me if you need more help.
2006-10-25 04:06:40 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If you have not contacted the creditors or made any payments or offers of payments - you do NOT LEGALLY owe the debt - all states have statutes of limitations on consumer debt and the most is six years (some are 4, 5, 6).
Legally, I wouldn't pay them, because it would destroy your credit AGAIN and start the clock all over and you would be unable to have the old debt removed (if it hasn't been) and it would become NEW bad debt. Which is the worst for your score
Morally, maybe - but the ramifications are big and long lasting.
2006-10-27 18:05:28 · answer #4 · answered by Paula M 5 · 0⤊ 0⤋
Here is the real truth.......
It really depends on your own personal opinion. My opinion would be based on how old they are (when was the last activity) who they are with and of course "my morals" do I owe them?????
I would stay away from CCCS because these debts are with collection agencies that will never reage the accounts.
I would reccommend settling the debts for less then you owe: http://www.expert-credit-advice.com/debt_settlement_service.htm
Debts do expire but rarely go away peacefully here are the statutes listed by state and in great detail:
http://www.expert-credit-advice.com/statute_of_limitations.htm
But keep in mind there is a new industry call "junk debt buyers" that will bother you until forever if you dont pay up!
This is material everyone should read: Incredible!!!
MUST READ: http://www.expert-credit-advice.com/junk_debt.htm
2006-10-25 03:24:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Old debts actually expire. To see a timeline go to http://creditwisdom.blogspot.com/2006/09/credit-report-timeline.html Many items stop being reported after 7 years and there is a special case for accounts in collection. Since your debt has been outstanding for so long you may want to look at this before you make any decisions especially because paying certain accounts resets the clock.
2006-10-25 02:57:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Phoenix's answer is GOLDEN - right on the nose. Exactly what I would advise as well. I would add, however, that if you haven't already, cut up your credit cards and live on cash from now on!
After thought: I just read Liane's answer and the information she refers to (credit Blog) is very interesting as well. Great information that most people don't know.
2006-10-25 02:57:57 · answer #7 · answered by family_matters 3 · 1⤊ 1⤋
call the credit card companies -- explain to them your situation. See if there is anything they will do, like defer your payments for 3 mos or 6 months or something due to your health issues/job loss, etc. Usually they will work with you if you call them. Just be frank with them. Tell them you have to choose between a roof over your head and a credit card bill, and obviously they are not going to win. You are willing to pay them, can they please defer your payments for a few months until you get on your feet or work with you in some wya.
2016-03-18 23:52:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
well after 8 years any thing you didn't pay for will clear out but some times it will show but it will say account closed on it its crazy i know because even if you pay it. i t will show on your credit report as paid off account closed but it still shows that it had been paid late so either way your dammed if you do and your dammed if you don't .................its really up to you what you feel is in your better interest good luck .......
2006-10-25 03:05:57 · answer #9 · answered by mari 3 · 0⤊ 0⤋
If you haven't charged anything in 6 years, statue of limitations will normally run out in 7 years. However they may contact your employer and garnishee your wages. Call them and set up a pay agreement before you lose your good job.
2006-10-25 03:02:03 · answer #10 · answered by tom_nearhood 3 · 1⤊ 2⤋