a lawyer has been hounding me about a company that went out of business and is now trying to collect on its past debtors. 1994 there was a dispute on the honesty of the co. clients sued and some other co. bought the credit co. 2005 a lawyer is trying to make good on that debt which has trippled into the high thousands. i am not disqualifying what i owe, but i don't want to pay for more then i used. he also stated that interest will occur at the rate of 13 or 12% until the debt is paid in full. he did not offer a ssettlement in which due to my circumstances financially am unable to pay. what are my legal rights and what about the statue of limitations. i'm bearly making my rent and utilities and living presently $1.oo to $1.00...
2006-12-01 10:15:38 · 6 answers · asked by gypsy 1 in Business & Finance ➔ Credit
you should've paid yo bills 12 years ago
2006-12-01 12:10:14 · answer #1 · answered by Anonymous · 0⤊ 2⤋
With years in the credit industry:
The other posters are wrong, if this debt is a legal judgment against you. They are also wrong if this is a debt based on a contract that has not passed your state's statute of limitations.
In Ohio, for example, the Statutes on contracts go to 15 years and beyond. You will need to check what it is in your state.
These types of matters have nothing to do with your credit report and is soley a legal issue. I imagine a lawyer would not be pursuing the debt unless he had legal standing to do so. However, you may want to call your local bar association and see if he is actually a lawyer. Many sleazy collection companys will go to great lengths to get money.
As for the dollar amount, the contract should have stipulated the interest amount. If it is a judgment, exactly how much you owe and your interest rate will be on the judges order. Ask for a copy of the paperwork that verifies the debt, as this is within your rights.
Go to the federal goverment's site on debt collection:
www.ftc.gov
Click on "consumers" and then on the debt collection link. It will help you understand your rights.
Best of Luck.
2006-12-01 21:10:38 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A debt that old may be uncollectible. Every state has a statute of limitations on debt collections. If the debt is older than the statute allows, it is uncollectible. Assuming that the statute has expired (and it has in most states for a 1994 debt -- most are 4 - 6 years but a few go as high as 20) not only is it uncollectible, it won't show up on your credit report either.
Do NOT admit to this debt or agree to ANY sort of payment arrangement or you may re-start the statute of limitations clock again. I can't stress that enough; you can screw yourself if you say the wrong thing!
Consult with a local attorney and see where you stand with the SOL. Then go with your attorney's advice. A quick consult won't cost you much -- many attornies will offer a free initial consultation so it might not even cost you anything.
2006-12-01 18:31:11 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
That "lawyer" is legally obligated to provide proof that you owe the debt. If he cannot provide proof, then you legally do not owe the debt, though you may still harbor the ethical responsibility to pay it.
Secondly, nothing is supposed to remain on your credit report after 7 years of inactivity (though there are some exceptions). Twelve years is right out.
You should also investigate the laws in your state regarding the statute of limitations on old debts. I bet this "lawyer" is just trying to scare you into sending him some money. He likely has no legal grounds on which to demand payment.
Again, demand proof that you owe the debt, and go from there.
2006-12-01 18:30:47 · answer #4 · answered by Joseph 2 · 1⤊ 0⤋
First off, ignore all calls from the lawyer. Is this debt in your credit report? If so, dispute it with the CRAs because it is past 7 years old. Do not communicate at all with this lawyer - i think what he's try to do is re-age the debt which is illegal. What kind of debt is this? If you have not made any changes to the account (like payments), you are clear because it is passed the statute.
2006-12-01 18:21:00 · answer #5 · answered by wildenemart 4 · 1⤊ 0⤋
I would send a letter to the Attorney General, and copy the lawyer in question. The debt is clearly outside the statute of limitations and is noncollectable.
2006-12-01 20:22:44 · answer #6 · answered by Kevin K 3 · 0⤊ 0⤋