statute of limitations

[cdm]

What is the name of your state? Florida

Hi,
I have an 8 yr old credit card debt that I was recently served papers for. The default has been recorded in public record and out of fear and ignorance I agreed to a payment plan with the collection agency. I set up a post-dated payment and then canceled the arrangement due to a change in income. Unfortunately, I've done this twice in the last 4 months. (Hooray for FL job market) Now, I realize that since this is an 8 yr old debt the statute of limitations was in affect (4 yrs) and I SHOULD have handled this differently.

I understand I owe the debt and can make payments, however, now that I'm being sued there is an insane amount of interest and fees which almost triples the original $1200 balance.

Does anyone know if the statute of limitations restarted when I set up the first payment plan? Or can I prolong this case in any way by requesting to show proof of debt etc?

Like I said, I owe the original amount... but if it doesn't go to court then do I have an argument NOT to pay the extra fees?

Thanks in advance for any advice...

[Debt Guy]

Does anyone know if the statute of limitations restarted when I set up the first payment plan?

You need to read the statutes of your state. Most likely, the answer is yes.

Exactly what did you sign with the payment plan? Did you sign an agreed judgment?

Or can I prolong this case in any way by requesting to show proof of debt etc?

Depends what you mean by prolong and exactly where you are in the process. Are you currently in litigation? When is your deadline for answer?

Like I said, I owe the original amount... but if it doesn't go to court then do I have an argument NOT to pay the extra fees?

Ahhh - the magic of compound interest. Albert Einstein (reputedly a bright guy) said the most powerful force in the universe was compound interest.

Besides, the original agreement provided for all those fees and interest. You can challenge it and demand an accounting if you are in litigation -- but otherwise, sorry. The written agreement will prevail.

[cdm]

Thank you for your reply... here's further detail, as I've read the papers again more thoroughly...

I was mailed a "Default Final Judgment" with a "fact information sheet" attached. The paper mentions a pre-trial conference that took place 11/07 that I knew nothing about.

I didn't sign anything when I agreed to pay, it was just set up over the phone. They requested I fax papers back but I never did.

I've researched the law office associated with the plaintiff (Hayt, Hayt, and Landau) and learned they are not actual lawyers but debt collectors. When I called them for further info I'm transfered to a call center where there is no mention of a court matter. I simply say I'd like to set up a payment plan and they take my info, issue resolved.

I have originally thought this was just an aggressive scheme to collect on this debt, however, this judgment is recorded in public record now.

I've been freelancing the last few months and own nothing. Would a judge sentence me to serve any time if they cant garnish wages etc? Or maybe a lien on my credit? I'll research this online, but just curious if anyone knows here. Thanks again..

[debtcollector`]

I've been freelancing the last few months and own nothing.

You may want to rethink your employment strategy if you have been doing it for a "few months" and have nothing to show for it.

Would a judge sentence me to serve any time if they cant garnish wages etc?

Unfortunately we no longer have debtor's prisons. You cannot go to jail for not paying.

Or maybe a lien on my credit?

Not sure what you mean. Yes it will appear on your credit.

DC

[cdm]

You may want to rethink your employment strategy if you have been doing it for a "few months" and have nothing to show for it.

I have plenty to show for working, however, I dont own anything out right. I rent a home, financed a car etc... I mentioned my freelancing bc I was wondering another route the collector would take if they could not garnish wages.

Thank you for your help,
CM

[debtcollector`]

I have plenty to show for working, however, I dont own anything out right. I rent a home, financed a car etc... I mentioned my freelancing bc I was wondering another route the collector would take if they could not garnish wages.

Thank you for your help,
CM

Well, hauling your clients into court should get your attention. Then issuing an assignment order, which orders them to pay the judgment holder instead of you. As you have no "wage" to garnish, the judgment holder can take every penny your clients owe you.

You need to understand that you are not dealing with simple collection anymore. They have a judgment, which gives them many more options to find your money and take it.

DC

[cdm]

Well, hauling your clients into court should get your attention. Then issuing an assignment order, which orders them to pay the judgment holder instead of you. As you have no "wage" to garnish, the judgment holder can take every penny your clients owe you.

ugh.
Thank you for the info