My parents owe about $13000 on a Discover card, but I'm not sure how old the debt is. Recently an officer from the sheriff's office came by with a letter saying that Discover was suing them. A friend of theirs told them that Discover could take their house. Is this true? Also, how long is the statute of limitations for credit card debt in Alabama? Or, since the credit card was applied for and most of the charges were made in Georgia, would the statute of limitations for Georgia apply? Can they still settle? What other options do they have?
2007-02-12 06:26:03 · 5 answers · asked by daboodee_daboodai 1 in Business & Finance ➔ Credit
No, they cannot take your parents' house. If they are awarded a judgement, they can (and likely will) file a lien on the property. Since $13k is no longer a small claims matter, this'll be heard in civil court. Your parents need to hire an attorney. Their attorney will provide them with options, and discuss statute of limitations in your state. My guess is they are within the statute of limitations.
Your parents need an attorney to represent them. I can't stress that enough.
2007-02-12 06:52:06 · answer #1 · answered by cardinalboy97 3 · 0⤊ 0⤋
They can't take their house, however, a judgment could be found against them and a lien put on the house. What this means is that when they sell the house, before they get a dime, all monies owed to Discover have to be paid.
Statue of limitations are normally 7 years, and really doesn't have anything to do with the state; that's how long it will stay active on the credit report.
They can contact Discover and offer to pay a (reasonably) lower amount, offer to make monthly payment which they should have been doing anyway, or work out some kind of arrangement.
They owe the money - they need to pay.
2007-02-12 06:37:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You'll want to hire a lawyer if the sheriff stopped by. That means they received a summons and if they don't answer it and appear in court they loose by default. You don't want that to happen, as it will result in a lien that will be around for a long time.
2007-02-12 08:22:58 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
Normally the primary residence is creditor-protected. They also should think of debt-consolidation. For this please check out bebt consolidation options at http://mortgage.yeyeyup.com
2007-02-12 07:37:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you need to get a hold of a primerica agent they can help with this old debt
2007-02-12 06:29:51 · answer #5 · answered by Aflac girl 2 · 0⤊ 1⤋