Debt settlement on a 6 year delinquent debt

**disneysteve** · 11-02-2014, 04:55 AM

Originally posted by foolishboy View Post

Is $4.5K reasonable on a debt that has been delinquent for 6 years?

It's on the high side - which is why that's their initial offer. You can probably offer them $2,500. Make it clear that that's all you have to work with. If they accpt (or you agree on some in between number), pay by cashier's check or money order. Don't give them any personal account info. No personal check. No electronic access to your account. And don't pay until you have something in writing documenting that this will represent payment in full.

I am reluctant to settle one debt without being able to settle them both at the same time. I am concerned that maybe the two new companies are related and might use the settlement of one debt to benefit the other.

The debts are with two different companies. They have nothing to do with each other. Settle one and then worry about the other one.

**hamchan** · 11-02-2014, 10:55 AM

Honestly, if it were me I would not pay it. If it has already been six years then it probably past the statute of limitations, and if not it will be soon. Use the law to your advantage. They certainly would.

**snafu** · 11-02-2014, 10:24 PM

What Is The Statute Of Limitations On Debt And Do I Have To Pay After? | Bankrate

http://www.bankrate.com/finance/credit-cards/state-statutes-of-limitations-for-old-debts-1.aspx

The statute of limitations on debt is the length of time that debt collectors have to sue you to collect old debts.

There are limitations. If you acknowledge debt or make some type of payment, you restart the date I believe.

**hamchan** · 11-02-2014, 10:36 PM

You have to have made a payment to restart the clock, and OP says the last payment made was six years ago. I'd be willing to bet that the debt was sold to a junk debt buyer given the timing. They bank on people not knowing their rights, and talk them into making even a partial payment, which resets the clock. These people are some of the worst kind of scum.

**foolishboy** · 11-03-2014, 12:44 AM

Originally posted by disneysteve View Post

It's on the high side - which is why that's their initial offer. You can probably offer them $2,500. Make it clear that that's all you have to work with. If they accpt (or you agree on some in between number), pay by cashier's check or money order. Don't give them any personal account info. No personal check. No electronic access to your account. And don't pay until you have something in writing documenting that this will represent payment in full.

The debts are with two different companies. They have nothing to do with each other. Settle one and then worry about the other one.

Thanks. But do the credit card companies also have access to my credit scores? If they notice that one debt has been settled/paid, etc do you think that would change their strategy and make them less likely to offer me a deal?

**disneysteve** · 11-03-2014, 04:35 AM

Originally posted by hamchan View Post

They bank on people not knowing their rights, and talk them into making even a partial payment, which resets the clock.

I would not make a partial payment to a debt collector. Negotiate a one-time settlement - you DO OWE this money after all. Get that settlement agreement in writing. Then send a money order that in no way gives them access to your bank account.

**hamchan** · 11-03-2014, 06:44 AM

You owe the money to the original creditor. Not the company who bought uncollectible debt second or third hand for pennies on the dollar. You have no legal or moral obligation to pay anyone once the statute of limitations has passed, in my not so humble opinion. If you pay it then you'll just encourage these low-lifes to continue their greedy opportunist existence of taking advantage of vulnerable people who don't know any better. Tell them to suck rocks.

I got a call once from a debt buyer who was trying to collect on a $300 debt that was over 12 years old. I told them it was past the statute of limitations and I would not be paying one thin dime. The guy tried to argue with me, and I hung up on him. I never heard from them again. They count on people not knowing the law. If they know that you know they will not bother you.

**disneysteve** · 11-03-2014, 07:06 AM

Originally posted by hamchan View Post

You have no legal or moral obligation to pay anyone once the statute of limitations has passed

I agree that you are not legally obligated once the statute has run out. Whether or not you are morally obligated is more of a personal decision so I won't debate that one.

HOWEVER, if the statute of limitations has not expired and you now have the means to repay the debt, sitting around waiting for the statute to expire rather than paying the debt, that I have a problem with.

Just to be clear, I am 100% opposed to the sleazy debt collectors who break all kinds of federal laws in the course of attempting to get money. Those people should be locked up. But if the debt is legit and they are following the rules, they have every right to be paid.

**hamchan** · 11-03-2014, 08:07 AM

We clearly are coming from very different places, but I do not have an issue with waiting out the SOL even if you technically have the money to pay the debt off. They have a certain amount of time to sue you for it. If they choose not to it is usually because it's not worth their time and money to do so.

My sense of moral duty is to myself and my family first and foremost. If there is zero benefit to my paying a debt, and zero benefit to the original creditor (assuming that I feel any moral obligation to that creditor, which is not always the case) then I will not pay the debt. I will not sacrifice my family's security or well being over some misplaced moral obligation. Especially if the end result of that is that I am merely lining the pockets of human pond scum.

**foolishboy** · 11-03-2014, 02:50 PM

Thanks for your input. The SOL did not run out because I left the country to find a job shortly after Jan of 2009. AFAIK, the SOL clock stops ticking when you leave the country - even when you leave the state of residence.

I am assuming that these debt mafia also have access to my credit record. If I pay off one of the cards, Is it likely that they will be monitoring my cc history and take note of any new activity, like paying off only ONE of the debts? If I do pay off one, how long does it take to reflect on my credit history?

**disneysteve** · 11-03-2014, 03:01 PM

Originally posted by foolishboy View Post

Thanks. But do the credit card companies also have access to my credit scores? If they notice that one debt has been settled/paid, etc do you think that would change their strategy and make them less likely to offer me a deal?

What's the difference? You have an opportunity right now to settle one of the debts. Do that and be done with it. You can worry about the other one when that collector comes calling. Have you heard from anyone regarding the 2nd debt?

**hobo2** · 11-14-2014, 07:17 PM

FB- I'm a bit like you. I ended up homeless and after 7 mths. of nothing happening, went back overseas for work. That put one of my credit cards into serious debt ($5K) as my homelessness didn't end for another 7 months. I've had work for the past 5 months and have started to pay off my debt, tho a lot less than the min. req'd (who cares about what the overpaid CEO wants every month). For me, it's a moral thing as I don't want this following me into my next life.

You mentioned that as soon as you leave the country, the limitations stop. You have no contact info on your profile, so can you tell me about this? How would this affect me?? I still have one other credit card in excellent standing, but I know that I've ruined my credit rating (which was quite good before all this happened). The credit card company doesn't know where I am, tho they do know I'm no longer in the U.S.

Debt settlement on a 6 year delinquent debt