$75K in debts from 2005 in CA - should I file?

[StevieB]

Hello -

I late 2005 I was forced to walk away from my life. I have approx. $75K in unsecured debt. Bill collectors no longer hound me. But, one creditor filed a small claims suit against me for $2500, and that case is due to be heard on 10/6/2009.

My question is this: should I negotiate with the creditor and avoid the judgment, or should I file a BK? I qualify for Chapter 7. Should I put this behind me in a BK, or should I wait for the statute of limitations (4 years in CA) to run out?

Thanks!!

[keepmine]

Keep in mind, the SOL is an affirmative defense. If you get sued, you have to raise that issue in court. Just because a debt is SOL does not mean you can't get sued.
Just depends on how comfortable you are the possibility that you may well be spending some time in the courthouse in the future.

[music12]

are you saying that a creditor can get a default judgment on something that's past the SOL? courts don't check dates?? i thought a court has no jurisdiction to enter a judgment on debt that's past the SOL regardless of whether a defendant shows up.

[keepmine]

are you saying that a creditor can get a default judgment on something that's past the SOL? courts don't check dates?? i thought a court has no jurisdiction to enter a judgment on debt that's past the SOL regardless of whether a defendant shows up.

That's correct. The SOL is an affirmative defense. The defendant has to raise the defense. You snooze-you lose.