However, whilst this will inevitably be poorly reflected upon your credit history at the time, at some stage when you have been discharged from bankruptcy, you may wish to re-apply for a mortgage or some other form of loan or credit and, these days, there are many companies who are willing to lend money to those who have had a bankruptcy order placed upon them in the past. The good news is that a well constructed letter explaining the reasons for the bankruptcy is always liable to go in your favour.
Debt Collection Agencies Debt Collection Statute of Limitations The ultimate power a creditor can have comes from the filing of a lawsuit and the attempts of debt collection lawyers to obtain a judgment against you. There are time limits that a collector has to file a lawsuit against you.
Each debt and state are different.
Here are the statutes of limitation for the various types of consumer debts in your state. What is the statute of limitation? A statute of limitation is a law that varies by state which imposes a set time limit from when a breach of contract occurs to when a lawsuit can be filed in order to force payment of a debt.
This could be for a couple of possible reasons: The time limit begins when there was a breach of contract lack of payment and not from the time the account was opened.
Even if the statute of limitations expired, a debt collector can still call you for payment of debt. However, they cannot make threats or take legal action against you. There was already a judgment entered against you. Once a judgment is entered, that judgment remains in effect for a substantial period of time, which varies from state to state.
Can the statute of limitations be extended? Potentially, in some states, certain activities can re-start the statute period.
Making an agreement to repay the debt, acknowledging the obligation in writing, and in some cases, making any payment towards the debt can re-start the statute of limitations period. What Can I Do?
You are protected by law under the FDCPA in asking the debt collector whether the debt is time-barred, and the collector is legally required to be truthful. The FDCPA also protects you from collectors falsely threatening legal action due to a time-barred debt.
Also be aware of the accuracy of your credit report. While the Fair Credit Reporting Act allows a creditor to report a delinquent debt for up to seven years, many have re-aged the account to make it stay on longer.
If you are still unsure of your status concerning the statute of limitations on an old debt, or are being wrongfully harassed, or have an error on your credit report, do not hesitate to contact the attorneys at SmithMarco, P.Sample Letter - Request to Cease and Desist Date: Name and Address of Collection Agency: Re: Account name and number: You are hereby notified under provisions of Public Law , Section C, The Fair Debt Collection Practices Act, to hereby CEASE and DESIST in any and all attempts to collect the above debt.
SAMPLE LETTER TO COLLECTION AGENCY. DISPUTING DEBT. The following page is a sample of a letter that you can send to a collection agency if you think you do not owe the money they are I am writing in regards to .
If you have been hurt by unethical practices by your creditors, you can sue them and win. Kimberly Rotter is a writer and editor in San Diego, CA. She and her husband have an emergency fund, two homes, a few vehicles, a handful of modest investments and minimal debt.
I am writing in response to your letter or phone call dated _____. I do not believe that I owe this debt or what you say I owe.
Pursuant to the Fair Debt Collection Practices Act, Section (b), Validating Debts: “If the consumer notifies the debt collector in writing within the Initial Debt Collection Dispute Letter. If you have been contacted by a debt collector that is not the original creditor or representing the original creditor, I think it would be smart to ask the debt collector to validate the debt and prove you actually owe it if there is any doubt on your part you owe the debt.