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I have a credit card balance on my credit report that scheduled to drop off of my credit report on 10/09. I received a call from a lawyer that said a collection agency hired them and they're going to file a judgment. If a judgment is made does that restart the 7yrs on my credit report over? Do I wait for the judgment letter? Is there anyway to prolong this until this date is to be dropped off my credit report?
Filing a judgement does not start the statute of limitations over, it stops it dead in its tracks, the clock stops ticking. A lot of collectors will wait till near the end of the statute of limitations and file a judgement, it is their last chance.
Hi Stariceh
You should first check out the Statute of Limitation in your state. If the SOL has expired, you need not make any payment towards the debt and the creditor cannot bring judgment against you to recover the debt. We can help you out here if you can tell us the state where the loan agreement was signed and the date of your last payment towards the debt. Moreover, filing a judgment does not restart the SOL, but if you make a payment after the SOL has expired, the SOL period may restart.
I would also get a debt validation letter out in the mail as soon as possible. My bet is they can not validate this debt or at least not validate it correctly which will stop them in court from getting any verdict at all. There is sample letters for debt validation under letters of credit if you need an example of how to put one together. Also remmeber to list your state since the SOL may save you too.