SOL/FCRA usage better than filing BK?

[debtfree09]

So I am a few days away from filing, and I happen to come across a very generous paralegal in my hometown. While discussing my pending case with her she tells me that in my situation BK is not the way to go? My debts are over 5 years old, and just about all are credit card debt. She tells me that the only two that can be collected upon are from an apartment rental agreement, and a personal loan which combine for a total of $7500 (Which only applies if they try to sue me from IL [10 year for written] since I currently live in TX [4 year for written]). I read that negative information can only be reported for up to 7 years (plus 180 days in some cases), according to the FCRA. I began to wonder if she knew what she was talking about, and then I searched this site for more info. Does this sound about right, or is this a bit far fetched? Thanx for reading.

[SMinGA]

Yes, debts can be time barred meaning they are past the statute of limitations. The creditors can still attempt to get you to pay - but they cannot file suit to do so. Or if they attempt, you can respond with evidence that the debt in question is time barred. Its an absolute defense, its not a question of whether or not you owe it but a simple fact that the creditor missed their window for taking legal action.

If you have any judgments, however, that is different. Once a judgment is obtained then it can be renewed.

[HHM]

That is an OPTION if you want to spend the next 5 years battling the credit reporting agencies, dealing with junk debt buyers that keep popping up on your credit, and overall still be dealing with it. Not to mention all the time you will need to invest to figure out what your rights are, and more importantly, how to enforce them. This strategy entails more than just sending a few letters.

Generally, BK puts a STOP to everything so you can move on. There really is no downside to you of filing BK over the alternative.

[GoingDown]

But to file BK over $7500 seems like overkill. It seems like it would be better to save back BK as an option in case something bigger (like unforseen medical bills, etc.) comes along in the future, and then instead of having to wait through the time before you can file BK again, you will have the option of filing immediately.

There are several tricks that I have used very successfully to deal with old debts...

Send them a Cease and Desist Communications letter in the mail if they are calling you or your relatives. It stops the calls.

If they keep sending the accounts to new collection agencies and calling you, then go to plan B. Get a pay as you go cell phone (Net 10 seems to be the cheapest) and cancel your old phone and don't leave a forwarding number. Then when you tell your relatives your new phone number, tell them to not give out your phone number to anyone, under any circumstances. And if you have to use a phone number for other credit cards or loans or anything which might appear on your credit report, use a Google Voice number instead of your pay as you go cell phone number. That way you can always block creditors from calling you.

If the debt is out of statute, say this in your Cease and Desist letter. That will let them know for sure that you are not wasting a lawsuit on.

Make yourself as judgment proof as possible until all debts are out of statute, and if you are judgment proof, state that in your letter. But don't lie about it if you're not, because they can figure it out anyways.

[lcnm]

I use my goggle voice number for everything. I set up a category for "Creditors" and have that category set up to not forward to any phones. This way, you will still have a record of incoming calls (once you identify the numbers and add it to the contact list and proper category. This come in handy if you are having a problem with a collector that choose not to adhere to FDCPA.

I have one creditor now who received and account that is included in my CH13 filing. They keep calling, usually they hang up, one time my wife was talking to them, and as soon as she told them we filed ch13 and tried to give them our attorney's info they refused to take it and hung up, but they dutifully call once a day.

Interestingly, they were included in the filing for another small account, and I have seen (via pacer) that they were sent the notice of filing, but they tried to claim they never received it. If anyone is interested, it's allied interstate. To date they haven't filed their claim for either account they have. The claim bar date is either Sept 11 or Sept 29, it will be interesting to see if they get their claim in. I'm betting they won't for either claim.

[treehugger1]

There is a very good chance that AI was only assigned the debts from original creditors. In other words, they do not own the debt. Therefore, they will probably have no claim. In a BK 13, the creditor must provide evidence of their claim. How will a CA provide evidence of ownership, if they are only assigned the debt for collections. The original creditor can make a claim. It is quite common for any party associated with your debts to be listed in your matrix. Better to cover all possibilities.

You should call your attorney and find out about intiating a suit for violating the stay.