Advice on Old Debt

Submitted by Margaret on Mon, 11/16/2009 - 16:17
Forums

Hello Margaret, When you amde the payments on this debt you more than likely restarted ,what they call, an SOL. This is a statute of limitation for credit card debt that varies by state. After your default on a debt the SOL period begins. If the creditor does not take legal action before the SOL expires you would not be legally obligated to pay them. Now if they file suit before the SOL expires then they could garnish wages or win a judgment in court against you. ALways ask for debt validation if the account is sold to a collection company and the original lender no longer owns it.

Mon, 11/16/2009 - 16:26 Permalink

Yes Margaret once you paid on the debt it started the SOL all over again. So now you are responsible for paying it. But make sure to get them to send you proof the debt is yours.

Mon, 11/16/2009 - 16:34 Permalink
karin (not verified)

we had financial problem years ago and could not pay our bond anymore the bank repossesed ouhouse and sold it on a auction. we never heard from them again. now 8-10 years later they say that we stilowe them money and that my husband must go to court if he does not they will take judgement against him and place a garnishee order on his salary

Fri, 11/27/2009 - 11:42 Permalink

Hi Karin, I would definatley go to court. Not appearing will result in a default judgement against you and your husband. If you have made no payments on the debt since they sold the house then you need to check the statute of limitations on that type of debt. I believe it may be different that regular credit card SOL's. Is this the original lender that is trying to collect the money or is it a collection agency?

Mon, 11/30/2009 - 00:12 Permalink