Bank of America/Credigy filing lawsuit for 5 yr old credit card debt

[Kayceezip]

What is the name of your state? Texas

I have a credit card that I stopped paying 5 years or so ago. At that time, I attempted to make payment arrangements with Bank of America, but they refused. Other credit card companies worked with me and were paid in full.

Now a company named Credigy out of South Carolina I think has the account and is attempting to have me served with papers to file a lawsuit. In March 2004, Credigy sent a collection letter. I had a my credit restoration company Fowler and Fowler answer it with an inquiry to verify the debt. It was ignored. May 2004 papers were filed with the court. June 2004 I receive the knock at the door. I have yet to be served and I believe the papers have expired. To my knowledge this is just a delay and papers will be refiled etc. Since the knock at my door, I called the company and attempted to negotiate a settlement. The original debt was somewhere in the neighborhood of $4,500, but now they want in excess of $13,000 plus attorney fees. In my negotiations I was ask how much money I had available and what I was comfortable paying. I gave them low figures. It was then explained to me that the best they could do for me was to take off the attorney fees and I pay the $13,000.

Now, I know if I get a judgement against me that they can't take my house, but it will go on my credit report, but more importantly in the state of Texas they can freeze my checking account and this could go on forever. The only option I see is to file bankruptcy to avoid this judgement.

I really hate to do that as I do have pretty good credit scores and plenty of good credit. Additionally, I owe nothing to credit cards at this time. I understand that I can reaffirm those I wish to continue to pay and not be a part of the bankruptcy. I also understand that the other credit card companies may force me to close my account.

Neither option is a good one, but the bankruptcy seems to be the lessor of the two evils. Any thoughts on this from others who may have had the same experience.

 

[willingtocope]

SOL has probably expired

You need to check on the statue of limitations for texas, and be certain when you made the last payment on this account. I'm pretty sure the SOL is just 4 years, so if the debt is older than that then the collector is attempting to collect on a time-barred debt.

Your credit restoration company should have known that and helped you deal with it.
If this is all true, then you've got a perfect defense to use in court AND a pretty good shot at suing the collector in return.

 

[I AM ALWAYS LIABLE]

My response:

As long as the creditor has filed their lawsuit WITHIN the four-year Statute of Limitations, then the lawsuit is not time-barred. The Statute of Limitations has nothing to do with when you're SERVED with the lawsuit.

Also, remember, if the creditor has made a diligent effort to serve you personally, and has failed through no fault of their own, and because you're dodging the process server, then the creditor may obtain an order from the court to have the Summons published in a newspaper. Then, when you don't see the public notice, and fail to answer their complaint, they'll take your default and obtain a judgment against you for the full amount, plus accruing interest at the legal rate.

IAAL

 

[Ladynred]

You need to call the courthouse and find out if a judgment hasn't ALREADY been rendered against you. If the debt truly is beyond the SOL, then you have an absolute defense, but if you don't use it, you LOSE and and, well, you'll be stuck with a judgment you could have avoided.