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10-24-2008, 02:17 PM
| | Junior Member | | Join Date: Feb 2008
Posts: 18
| | | Business Debt
What is the name of your state (only U.S. law)? California
I have a business debt around $10,000 and was reported on my personal credit because i signed a contract to guarantee a debt . What if i don't pay them back, is it right it stays on my record for 7 to 10 years time frame and it will go away right, I heard something like the collection agency or creditor can renew and leave a negative report on my credit report for a second time for the same debt, is that true, please advise, thanks |
10-24-2008, 04:45 PM
| | Senior Member | | Join Date: Dec 2007 Location: Alajuela - La capital del mundo
Posts: 5,886
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Originally Posted by eeguy02  What is the name of your state (only U.S. law)? California
I have a business debt around $10,000 and was reported on my personal credit because i signed a contract to guarantee a debt . What if i don't pay them back, is it right it stays on my record for 7 to 10 years time frame and it will go away right, I heard something like the collection agency or creditor can renew and leave a negative report on my credit report for a second time for the same debt, is that true, please advise, thanks | Since you signed the personal guarantee, that debt is now your personal debt if the business does not pay it back.
It will not go away in 7 to 10 year's time. You will most likely be sued prior to that. Once you have a judgement entered against you.
Do the right thing...get a job...maybe two or three but they debt is yours to pay!!!
__________________ Dang the Persephone for eating those pomegranate seeds. It is because of her urge to snack that we must suffer through the winter that will soon be upon us.  |
10-26-2008, 10:05 AM
| | Member | | Join Date: Oct 2008
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Originally Posted by Wirelessany1 Since you signed the personal guarantee, that debt is now your personal debt if the business does not pay it back.
It will not go away in 7 to 10 year's time. You will most likely be sued prior to that. Once you have a judgement entered against you.
Do the right thing...get a job...maybe two or three but they debt is yours to pay!!! |
Get a job? 2 or 3 jobs? Yeah, sure that's practical and realistic for everyone to do.
It will stay on your credit report for 7 years. If they sue you over it, the judgment will stay on your report for another 7 years.
They don't sue everyone for every debt. There are several main criteria they seem to use to determine whether they will sue a person...
1. Do they know where you work? Have they called you on the phone at work? If yes, you will probably get sued because this is their main way of getting paid after they get a judgment-- wage garnishment. Just the threat of wage garnishment gets most debtors to pay to keep their boss and co-workers from getting mad at them.
2. Does a mortgage appear on your credit report? If they see it on your credit report, you are likely to get sued because they know they can slap a lien on it and get paid eventually. If your house is paid off, it will still show on your credit report for 10 years after you pay it off.
3. Does a car loan appear on your credit report? Are payments being made on it? If yes, it shows them you have an income stream that they could likely tap into to pay off the judgment somehow.
If you answered no to all questions, then they are not very likely to sue you because you are probably judgment proof, so suing you wouldn't get them anything but more expenses and wasted time. |
10-26-2008, 10:21 AM
| | Member | | Join Date: May 2007
Posts: 563
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Originally Posted by Heir7 Get a job? 2 or 3 jobs? Yeah, sure that's practical and realistic for everyone to do. | It's both for anyone with anyone with a shred of personal integrity. |
10-26-2008, 10:26 AM
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Originally Posted by LeeHarveyBlotto It's both for anyone with anyone with a shred of personal integrity. | Working yourself to death to pay ungodly interest and late fees and collection costs is not integrity. It's stupidity. |
10-26-2008, 10:39 AM
| | Senior Member | | Join Date: Dec 2007 Location: Alajuela - La capital del mundo
Posts: 5,886
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Originally Posted by Heir7 Get a job? 2 or 3 jobs? Yeah, sure that's practical and realistic for everyone to do.
It will stay on your credit report for 7 years. If they sue you over it, the judgment will stay on your report for another 7 years.
They don't sue everyone for every debt. There are several main criteria they seem to use to determine whether they will sue a person...
1. Do they know where you work? Have they called you on the phone at work? If yes, you will probably get sued because this is their main way of getting paid after they get a judgment-- wage garnishment. Just the threat of wage garnishment gets most debtors to pay to keep their boss and co-workers from getting mad at them.
2. Does a mortgage appear on your credit report? If they see it on your credit report, you are likely to get sued because they know they can slap a lien on it and get paid eventually. If your house is paid off, it will still show on your credit report for 10 years after you pay it off.
3. Does a car loan appear on your credit report? Are payments being made on it? If yes, it shows them you have an income stream that they could likely tap into to pay off the judgment somehow.
If you answered no to all questions, then they are not very likely to sue you because you are probably judgment proof, so suing you wouldn't get them anything but more expenses and wasted time. | Ok Einstein...you are definitely the heir-apparent of how to respond with totally stupid and insidious anwers. 
__________________ Dang the Persephone for eating those pomegranate seeds. It is because of her urge to snack that we must suffer through the winter that will soon be upon us. |
10-26-2008, 10:43 AM
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Originally Posted by Wirelessany1 Ok Einstein...you are definitely the heir-apparent of how to respond with totally stupid and insidious anwers. | And you are obviously a debt collector. |
10-26-2008, 10:48 AM
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Originally Posted by Heir7 And you are obviously a debt collector. | Wrong again Einsteinl. If you would have done a little research before ASSuming what I do for a living you would have seen that I help credit-worthy people and businesses obtain financing. I leave the debt collections up to the guys like DC and Debt Guy.
Keep on posting like your posting...you're in for a wild ride. I can see it now (hey...my crystal ball just lit up - I'll let you all know later if she was right!!!)
__________________ Dang the Persephone for eating those pomegranate seeds. It is because of her urge to snack that we must suffer through the winter that will soon be upon us. |
10-26-2008, 11:02 AM
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Originally Posted by Wirelessany1 Wrong again Einsteinl. If you would have done a little research before ASSuming what I do for a living you would have seen that I help credit-worthy people and businesses obtain financing. I leave the debt collections up to the guys like DC and Debt Guy.
Keep on posting like your posting...you're in for a wild ride. I can see it now (hey...my crystal ball just lit up - I'll let you all know later if she was right!!!) | OOPS! But you're not far off from a debt collector. Which explains your hostile attitude. |
10-26-2008, 11:16 AM
| | Senior Member | | Join Date: Oct 2005
Posts: 1,528
| | Gosh, gee. Don’t let the OP’s question get in the way of a scintillating discussion. Quote: |
It will stay on your credit report for 7 years. If they sue you over it, the judgment will stay on your report for another 7 years.
| Well, no. Not quite right. A CA judgment is good for 10 years and can be renewed for another 10. The FCRA allows the record of the judgment to be maintained for the life of the judgment. So, to answer the question, it can potentially be there 20 years. § 605. Requirements relating to information contained in consumer reports
(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period. |
10-26-2008, 03:32 PM
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Originally Posted by Chien Gosh, gee. Don’t let the OP’s question get in the way of a scintillating discussion.
Well, no. Not quite right. A CA judgment is good for 10 years and can be renewed for another 10. The FCRA allows the record of the judgment to be maintained for the life of the judgment. So, to answer the question, it can potentially be there 20 years.
§ 605. Requirements relating to information contained in consumer reports
(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period. | Hmmm... that's not what it says on my credit report from Experian. I'm looking at it right now. |
10-26-2008, 05:04 PM
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Posts: 1,528
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Hmmm... that's not what it says on my credit report from Experian. I'm looking at it right now.
| I believe you and, if it says it now, it will probably read the same next week. That may make it hard for you to reconcile your credit report with the quoted language of the FCRA, but it’s not your thread so I can’t help you. To err is human but, if you’re going to advance opinions and advice here, I can suggest that you get your data straight. It’s something that’s owed to other readers and, with a published federal Act, it shouldn’t be that hard.
I’m glad they didn’t add “but we may take it off in 7 days”. It’s true. They could. Wouldn’t that be confusing?
If you’re going to rely on your credit report or something that you read on the Web or the back of a Wheaties box, just append a disclaimer to your post and it will be discounted appropriately. |
10-26-2008, 05:54 PM
| | Member | | Join Date: Oct 2008
Posts: 35
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Originally Posted by Wirelessany1 Ok Einstein...you are definitely the heir-apparent of how to respond with totally stupid and insidious anwers. | Oh, I looked it up, and here it is...
"They use programs that scrub the disks. Scrubbing is a process where they take the disk and run a program over it to determine the collectibility of the individual accounts. The ones that have the highest collectibility may result in a lawsuit being filed in state court if they can’t collect through telephone calls and letters. The scrubbing process enables debt buyers to determine a lot of things such as whether the individual works or owns property or a vehicle. They're looking for those types of things to determine collectibility. "
[url=http://bankruptcy-law.freeadvice.com/collections/zombie-creditors.htm]Zombie Creditors: A $100 Billion Industry That Is Anything But Consumer Friendly[/url]
So, are you saying that freeadvice.com is stupid, too? They said the same thing as I did.
Last edited by Heir7; 10-26-2008 at 06:05 PM.
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10-26-2008, 05:57 PM
| | Member | | Join Date: Oct 2008
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Originally Posted by Chien I believe you and, if it says it now, it will probably read the same next week. That may make it hard for you to reconcile your credit report with the quoted language of the FCRA, but it’s not your thread so I can’t help you. To err is human but, if you’re going to advance opinions and advice here, I can suggest that you get your data straight. It’s something that’s owed to other readers and, with a published federal Act, it shouldn’t be that hard.
I’m glad they didn’t add “but we may take it off in 7 days”. It’s true. They could. Wouldn’t that be confusing?
If you’re going to rely on your credit report or something that you read on the Web or the back of a Wheaties box, just append a disclaimer to your post and it will be discounted appropriately. | Well, if Experian says it on my credit report, I'm going to trust them over you any day.
And as a matter of personal experience, I had a judgment against me in the 1990s and it fell off my credit report after 7 years, and I never paid them a penny of it. So there you go. |
10-26-2008, 06:23 PM
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Posts: 2,955
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Originally Posted by Heir7 .....And as a matter of personal experience, I had a judgment against me in the 1990s and it fell off my credit report after 7 years, and I never paid them a penny of it. So there you go. | Now, I'm beginning to understand the other thread you started.
[url]http://forum.freeadvice.com/probate-personal-representatives-114/insolven-estate-relatives-taking-things-now-436350.html[/url] Quote: |
...But then the relative in question admitted to taking the money out of the account. There was no beneficiary listed for the account. He used what is called an "Affidavit To Collect Personal Property", which is just a notarized sheet of paper claiming that he is entitled to claim the assets of the deceased person....
| Quote:
LeeHarveyBlotto: It's both for anyone with anyone with a shred of personal integrity.
Heir7: Working yourself to death to pay ungodly interest and late fees and collection costs is not integrity. It's stupidity.
| Apparently, inegrity is not highly valued in the family.
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