Bad debt leads to court?

Question

I have bad credit due to alot of credit cards when I was younger. They are on my credit and I realize that they wont just go away. My question is:

Is there a statute of limitations of when that company can sue you? I have recently heard that you can be sued for charges on your credit. Also does the amount of the charge affect it in anyway? For example would a 6 year old charge of $300.00 be pursed as relentlessly as a 6 year old charge of $2000.00?

Answer 1

Six years is pat the statute of limitations in any state I've ever seen, so, if they haven't sued you yet, they won't.  They also don't go after trivial amounts.  It costs the hundreds to file a case.  Theoretically,, you're responsible for those charges too.  But, if you haven't paid the 100, they're probably not going to get the 250 filing fee or the lawyer's charges out of you either.

Answer 2

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Answer 3

Actually they will fall off on their own, as Anjell mentioned. The Fair Credit Reporting Act states that delinquent account can be reported for 7 years from the date of first delinquency.

There is a statute of limitations on which a creditor can be legal action against you for an unpaid debt. The SOL varies by the state and type of debt, but the link below will show you what it is for your state.

http://www.creditinfocenter.com/rebuild/...

No generally, whether you get sued or not depends on the amount of the debt, your financial situation (income, assets) and the collection agency itself. I've seen people sued for as small as $200-$300 and people with balances over $10k that didn't get sued.

A good rule of thumb is that you don't need to worry unless your balance is over $1000.

Answer 4

They usually won't sue for $300.00.  They also usually don't sue until about the 3rd or 4th year.  By that time the interest has doubled or tripled your original balance.  Also alot of times if the first collection agency doesn't collect the creditor gives it to another & they both show on your credit bureau.  This makes your score drop even lower.  The charges stay on the credit bureau 7 years.  If they sue you its 10.  It's better to try to settle the debt for less than the balance before it gets that bad.  Most of them will settle if you ask.  Get it in writing though & don't give out bank account info.

Answer 5

Yup they'll hunt you down for a $1

1. Order your credit reports from the 3 bureaus

www.equifax.com

www.experian.com

www.transunion.com

If you're ordering for the first time, get your score (for a fee) from Equifax as their scoring matters most.

2. Make copies of your report and put the originals in a binder. On the photocopied reports use a highlighter and check for any incorrect, outdate, false, etc...info

3. Download a dispute letter(s) from the credit bureaus website and list anything that is wrong. Mail them to their office(s). They have 30 days to reply.

4. If they will not remove something that is not yours or too old (> 7 years) as them for a debt validation. This may take an additional 30 days.

5. Once the 'baddies' come off, take care not to let any of your other accounts fall into that predicament.

6. If you haven't already make sure your existing accounts are current and paid on time ALWAYS.

7. Get a secured credit card with www.capitalone.com or www.mastercard.com for like $500-1000 or more if you can and use it sparingly. Charge like $50 on the card each month and pay it in FULL and on TIME. Make sure you do this for a minimum of 6 months so that you estabish a positive repayment history.

8. Problem with just letting them 'fall off' is that they may never. You may get sued before that...that's where you suddenly get a summons to appear in court and a judgment for collection against you.

For the 2 collection items...pay them but get a 'pay for delete' from the collectin agency in WRITING...they'll delete it after you pay and it will help your credit score