I have a debt that went delinquent in 11/98. Unknowingly, I made a payment on the account in 4/04. I now know that I have "restarted" the SOL (which is 6 years) Since the debt was from 1998, it HAS been removed from my credit report (as of 2005) My question is: Since I am responsible for this debt until 4/10, if the company decides to sue me, and therefore put out a "judgement", can they turn around and report the "judgement" to the credit bureaus? (I am halfway through w/SOL. Should I take the chance on the next 3 years?) And to all you that say I should pay because it is the "moral" thing to do- I have PAID, I paid 7 years that I could not get auto loan, even a STUDENT Loan..
2007-09-28 08:42:02 · 7 answers · asked by Angeleyes78 3 in Business & Finance ➔ Credit
That was cute...Statue of Liberty....now that's be serious!
2007-09-28 08:51:54 · update #1
"unknowingly" meaning NOT knowing that my SOL was going to run out, and by making that payment, I had extended it
2007-09-28 08:54:36 · update #2
If they sue and win, they do have a legal right to place the judgment on your credit reports.
It is possible that you did not reset the collecting SOL, like you think, if you didn't have a written agreement or acknowledgment of the debt, etc. when you made the payment
You might want to read the following link to NY case law concerning that very issue
http://www.courts.state.ny.us/reporter/slips/12615.htm
An excerpt from that case:
There are two ways in which the statute of limitations may be tolled. One involves part payment of the debt and the other a signed acknowledgment. As to part payment, the statute will be tolled if the creditor demonstrates that it was "payment of a portion of an admitted debt, made and accepted as such, accompanied by circumstances amounting to an absolute and unqualified acknowledgment by the debtor of more being due, from which a
promise may be inferred to pay the remainder" (Lew Morris Demolition Co. v Board of Educ. of City of N.Y., 40 NY2d 516, 521). As to a written acknowledgment, pursuant to General Obligations Law ? 17-101, the statute of limitations will be tolled by a signed written acknowledgment of an existing debt which contains nothing inconsistent with an intention on the part of the debtor to pay it (id.).
NOTE - the posting below is strictly my opinion:
If they are not actively pursuing the debt, just my opinion, don't rock the boat.
If they are actively pursuing it, calling or sending letters, etc., you might think about sending a SOL letter.
If they make noises about your payment to them in '94, you might cite the case law that I've linked.
If they try to sue, use an affirmative defense of SOL with your answer. Make "them" prove that you are not out of SOL.
You might also bring up that case law if they claim you had reset the collecting SOL.
2007-09-28 12:58:59 · answer #1 · answered by echo 7 · 0⤊ 0⤋
I would take my chances if I was you. If a collection agency is after you, all they can really do is try to bother you on the phone. But what you have to watch out for is if its a New York State law firm. They will sue you probably. I've seen situation where law suits where filed against someone and a default judgment was obtained. Then the SOL's ran and then the debtor filed an Order to Show Cause vacated the default judgment and now they cant be sued because the SOL's ran!!
2007-09-30 14:37:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
live and learn !!! what do you mean unknowingly made a payment? Yes, they try and put a judgement on you but
the court doesn't enforce payment of the judgement and
a judgement stays on your credit anywhere from 7 to 15
years and some states you can re-new the judgment
and others have SOL's on judgements. Since the account
is from 11/98 I doubt if they can validate properly, and
even though you paid in 4/2004, I'm sure you can still
ask for validity on the debt. If they PURCHASED the
debt and was not ASSIGNED the debt, you didn't sign
any contract with them to collect the debt and they have
to show and explain and send you a copy of the contract.
www.creditinfocenter.com.
2007-09-28 08:50:50 · answer #3 · answered by Anonymous · 0⤊ 1⤋
They can and will put a judgement against you and then it will be on your credit, they will seek a significant amount of interest also. (Know from experience). If you don't want to get sued, make a settlement for a lump sum payment or installments.
2007-09-28 09:23:29 · answer #4 · answered by ava 3 · 0⤊ 2⤋
They don't sue you unless you have committed fraud, and then it would have to be for some major money. If anything, they might turn you over to collections and start repossessing your stuff, or foreclosing on you.
2007-09-28 08:46:18 · answer #5 · answered by NONAME 2 · 0⤊ 1⤋
I know the Statue of Liberty, but not the Statue of imitations.
Sorry
2007-09-28 08:44:32 · answer #6 · answered by Mr. Vincent Van Jessup 6 · 1⤊ 2⤋
my friend in NYC had a 15 year old student loan..............they got him a year ago.....he paid 15000...............
2007-09-28 08:46:47 · answer #7 · answered by richard t 7 · 0⤊ 1⤋