Old debt and how to deal with it(Zombie Debt)

[BCSD2012]

I see posts on here every so often talking about old debt and debt collectors. So here is the lick about them and some articles to read.

You need to read these it's called zombie debt:
Companies now buy ancient bad debts for pennies and squeeze you to pay. Here's how to get them off your back.

As I discussed in "Zombie debt is hard to kill," there is now a booming market in the pursuit of debts so ancient that they used to be considered uncollectible

Are you in debt trouble? Sleazy new debt collector tactics; Zombie debt is hard to kill; Your 5 ... Collectors can't legally restart the seven-year clock by "re-aging" the debt (giving


http://articles.moneycentral.msn.co...sThereAStatuteOfLimitationsOnDebt.aspx?page=1

http://articles.moneycentral.msn.co...ZombieDebtCollectorsDigUpYourOldMistakes.aspx

http://articles.moneycentral.msn.com/SavingandDebt/ManageDebt/SleazyNewDebtCollectorTactics.aspx

 

[BCSD2012]

bump

 

[justfacts]

yeah I just had to clear a couple of bullshit accounts up from college...I noticed when it got closer to 7 years, I started receiving all kinds a letters and shit trying to make deals and give away free shit. I just laughed and waited it out....Score went up 90 points.

 

[DJ GROOVE]

good info here.

 

[PhillyTheKid]

wow...great stuff to know.

 

[ICEBURG SLIM]

Thanks My Friend

 

[BlackRob]

yeah I just had to clear a couple of bullshit accounts up from college...I noticed when it got closer to 7 years, I started receiving all kinds a letters and shit trying to make deals and give away free shit. I just laughed and waited it out....Score went up 90 points.

But, they're still on your credit report. Yes, they're beyond the SOL (statue of limitation) but some employers can still see it.

My situation, I paid off some old CC bills but have two remaining:
$8k and $2k.

My question to the board is ...should I call Debit Counseling company to contact these to CC/Zombie Dept collectors and try to negotiate a lower settlement so instead of paying them $10k I could pay maybe....$6k.

Or can I negotiate it down myself? If can do myself can someone provide links to steps etc.

 

[greygoose]

But, they're still on your credit report. Yes, they're beyond the SOL (statue of limitation) but some employers can still see it.

My situation, I paid off some old CC bills but have two remaining:
$8k and $2k.

My question to the board is ...should I call Debit Counseling company to contact these to CC/Zombie Dept collectors and try to negotiate a lower settlement so instead of paying them $10k I could pay maybe....$6k.

Or can I negotiate it down myself? If can do myself can someone provide links to steps etc.

go to the credit boards
http://www.creditboards.com/forums/

you might get some good info here too, but that credit board is where you want to be at with that specific question. spend some time there until you have a game plan on how to rid yourself of that debt. you shouldnt have to spend money to rid your debt, but i know nothing about it so good luck

 

[BCSD2012]

bump

 

[Genocide]

Paying Zombie debt is for retards. If the debt is older that 7 years, DONT PAY IT PERIOD. Paying it would actually LOWER your credit score because the account hasn't had activity in such a long time.

Legally all you have to do if this is on your credit report is to contact the 3 credit bureaus and submit a dispute. They will remove it no problem.

If it's not on your credit report then just ignore the calls. Aint shit they can do.

 

[justfacts]

But, they're still on your credit report. Yes, they're beyond the SOL (statue of limitation) but some employers can still see it.

My situation, I paid off some old CC bills but have two remaining:
$8k and $2k.

My question to the board is ...should I call Debit Counseling company to contact these to CC/Zombie Dept collectors and try to negotiate a lower settlement so instead of paying them $10k I could pay maybe....$6k.

Or can I negotiate it down myself? If can do myself can someone provide links to steps etc.

Not on my credit report at all. I sent letters to all the agencies explaining the debt exceeded the SOL. I was mailed a letter about a month later saying that the items were removed. Checked my report again, the delinquent accounts were removed.

 

[BUMBAY DA DOGG]

Thanks!

 

[phillyphilly]

Thanks

 

[showtime]

Not on my credit report at all. I sent letters to all the agencies explaining the debt exceeded the SOL. I was mailed a letter about a month later saying that the items were removed. Checked my report again, the delinquent accounts were removed.

So you still paying them? How can employers see them when they are not on your c. report? just curious.

 

[BlackRob]

So you still paying them? How can employers see them when they are not on your c. report? just curious.

Okay, I think I got it now. See below question and answer but...

It looks like you can have an old debt that is SOL REMOVED from your credit report, where an employer cannot see it

HOWEVER the original debtor (or collection agency) will forever have the paperwork showing that you legally owe the debt.

They can always sue you in court and will always lose because you can claim that you aren't obligated to pay such debt because it is past the SOL.

My problem is my $10k that I owe isn't past the SOL. Its been about three years (Four: is the SOL for Illinois)

So, those Zombie Debtor that bought my debt for what...$400. Will make some money off my black ass. As I need to have this debt removed.

So, I'll review that link above and see if I can get that reduced by dealing with the Zombie debtors.

Thanks, for the help everyone.

------------------------------

QUESTION
Q: Is a debt past SOL and removed from your credit report considered legally satisfied?


Answer

No, the expiration of the SOL designates the time in which the creditor has to file a lawsuit. This does not mean a creditor will not pursue litigation, as an SOL is not an "automatic" defense in creditor vs. debtor suits. If a debtor is sued after the expiration the debtor must bring forth proof that the debt is invalid, the court will not do this for him or her. Often people receive a summons for what they believe is an invalid lawsuit because the SOL has expired, this is not necessarily true. A creditor may file a suit one day before the SOL expires and it will be seen as valid litigation. In addition, a debt is always valid until it is paid, settled in a lawsuit or discharged in bankruptcy.

 

[greygoose]

So you still paying them? How can employers see them when they are not on your c. report? just curious.

i think what he meant was just because the statue of limitations has passed does not mean its not on your report. it might still be on the report

 

[BlackRob]

i think what he meant was just because the statue of limitations has passed does not mean its not on your report. it might still be on the report

See above, but everything I've read said it will be removed from your credit report. No one will see it.

Only the original debtor/Zombies and YOU will ever know you owe it. Once past SOL that is.

 

[BlackRob]

To explain why I've been asking...

This new job I'm applying for is a real BITCH about bad credit reports. Now they may hire me, and the keyword is MAY but I'd better have this mess cleaned up in less than a year.

With the salary for this position the $6k shouldn't be a problem. I'm tryin ta figure a way to work it down. This debt is already written off, why give the Zombie collector more money...

 

[kain]

go to the credit boards
http://www.creditboards.com/forums/

you might get some good info here too, but that credit board is where you want to be at with that specific question. spend some time there until you have a game plan on how to rid yourself of that debt. you shouldnt have to spend money to rid your debt, but i know nothing about it so good luck

That's some good info!
I passed that link along.

 

[4ce of n8ur]

Okay, I think I got it now. See below question and answer but...

It looks like you can have an old debt that is SOL REMOVED from your credit report, where an employer cannot see it

HOWEVER the original debtor (or collection agency) will forever have the paperwork showing that you legally owe the debt.

They can always sue you in court and will always lose because you can claim that you aren't obligated to pay such debt because it is past the SOL.

My problem is my $10k that I owe isn't past the SOL. Its been about three years (Four: is the SOL for Illinois)

So, those Zombie Debtor that bought my debt for what...$400. Will make some money off my black ass. As I need to have this debt removed.

So, I'll review that link above and see if I can get that reduced by dealing with the Zombie debtors.

Thanks, for the help everyone.

------------------------------

QUESTION
Q: Is a debt past SOL and removed from your credit report considered legally satisfied?


Answer

No, the expiration of the SOL designates the time in which the creditor has to file a lawsuit. This does not mean a creditor will not pursue litigation, as an SOL is not an "automatic" defense in creditor vs. debtor suits. If a debtor is sued after the expiration the debtor must bring forth proof that the debt is invalid, the court will not do this for him or her. Often people receive a summons for what they believe is an invalid lawsuit because the SOL has expired, this is not necessarily true. A creditor may file a suit one day before the SOL expires and it will be seen as valid litigation. In addition, a debt is always valid until it is paid, settled in a lawsuit or discharged in bankruptcy.

my ex had this issue. debt was beyond SOL. she got sued. subpoena and everything. called tax atty. he said that debt was SOL and that they] agency would most likely not show up in court because they will not sink cash (paying for attys and such) into something they can't assure will be paid. so tax atty was like, i will show up in court. it will get dismissed. pay me such and such fee - was like $900.

this is what happened. after it was dismissed - agency still tried to hit her up with threatening documents. contacted atty again. he sent cease and desist - certified mail. end of story.

and it did come off her credit report.

 

[justfacts]

you can't legallly be sued for SOL debt...it's against the law.

 

[BlackRob]

you can't legallly be sued for SOL debt...it's against the law.

If you look over that 'Answer' reply I posted above. I think thats what he's saying. Outside of the SOL, the debtor/Zombie can no longer file a lawsuit.

Answer

No, the expiration of the SOL designates the time in which the creditor has to file a lawsuit. This does not mean a creditor will not pursue litigation, as an SOL is not an "automatic" defense in creditor vs. debtor suits. If a debtor is sued after the expiration the debtor must bring forth proof that the debt is invalid, the court will not do this for him or her. Often people receive a summons for what they believe is an invalid lawsuit because the SOL has expired, this is not necessarily true. A creditor may file a suit one day before the SOL expires and it will be seen as valid litigation. In addition, a debt is always valid until it is paid, settled in a lawsuit or discharged in bankruptcy.

What I'm lost on is. What is litigation? I thought that meant the same as lawsuit.

So, they can't file a lawsuit after SOL but can pursue litigation. I'll try looking it up if no one can explain.

 

[4ce of n8ur]

If you look over that 'Answer' reply I posted above. I think thats what he's saying. Outside of the SOL, the debtor/Zombie can no longer file a lawsuit.



What I'm lost on is. What is litigation? I thought that meant the same as lawsuit.

So, they can't file a lawsuit after SOL but can pursue litigation. I'll try looking it up if no one can explain.

litigation/lawsuit - same thing. peep my post above about what happened with my ex girl.

SOL is not an automatic defense in that - you can't just ignore a subpoena in the hopes tha SOL is you get out of drama free card. you have to show PROOF that the debt is out of SOL. In that instance the judge throws it out immediately. in most cases the lawsuit is just smoke and mirrors because they know they can't win. they are trying to scare bread out of you. my ex had a tax atty who explained this shit.

 

[greygoose]

litigation/lawsuit - same thing. peep my post above about what happened with my ex girl.

SOL is not an automatic defense in that - you can't just ignore a subpoena in the hopes tha SOL is you get out of drama free card. you have to show PROOF that the debt is out of SOL. In that instance the judge throws it out immediately. in most cases the lawsuit is just smoke and mirrors because they know they can't win. they are trying to scare bread out of you. my ex had a tax atty who explained this shit.

when exactly does the clock start tickin on owed debt? that's the real question here that i am unsure about. is it when it was last paid? or when it first appeared (after non-payment) on the credit report.
like say i buy a 4,000 item last year march on amex. next month (april) its due but i pay nothing. they call, i tell them im gonna pay them, but pay nothing. and this goes on and on. so does the clock start tickin in april assuming no money has been paid? if i pay like 100 bucks in december is the clock then reset at that time?

 

[BCSD2012]

Bump

 

[rNubb]

Statue of limitation or SOL refers to the period of time that a suit can be filed in good faith. After the SOL has expired, the case can be successfully defended by simply demonstrating that case is beyond the SOL time restraint of your particular state.

You can send a cease and desist letter. Send it certified mail. Sample copies are on the internet.

Debt beyond it's SOL doesn't have to be paid if it is not on your credit file. If it is on your credit file and you pay it, then the account entry will be updated in your credit file causing it to impact your credit profile.

There is no credit bonus in paying an old debt. The only exception is if it is a credit account. An old visa or macys account will be factored into your credit profile negatively each month. An old cable bill, hospital or a debt to an apartment complex won't. Leave them alone. What happened in the past, must stay in the past.

The 7 year reporting limitation has nothing to do with the SOL.

The feds have determined that any debt that has been has not been made current for a period of 7 years, this debt can't be reported by the Credit Reporting Agencies. This it can't be on your credit report.

So counting back to the first date of delinquency that lead to your past due status, count 7 years.