What can they get if they win?

[db1966]

What is the name of your state?Calif

I just received a letter from an attorney that says I owe about $2000 on an account that I thought was closed over three years ago. He states that "should litigation prove necessary, you may be liable for all costs of the Municipal or Superior Court and all expenses incurred as a result of the litigation."

Is this true and how much could I lose if I lost in court?

Should I just pay this amount to make this go away?

 

[I AM ALWAYS LIABLE]

What is the name of your state?Calif

I just received a letter from an attorney that says I owe about $2000 on an account that I thought was closed over three years ago. He states that "should litigation prove necessary, you may be liable for all costs of the Municipal or Superior Court and all expenses incurred as a result of the litigation."

Is this true and how much could I lose if I lost in court?

Should I just pay this amount to make this go away?

My response:

Are you sure the letter is from an attorney? The reason I'm asking is because California no longer has "Municipal" courts, and hasn't had Municipal courts for quite some time. All the courts have been "unified" under the umbrella of the "Superior Court". I'm concerned that a real attorney would even use that term.

Be-that-as-it-may, if you have the money, and you truly owe the debt, save yourself from the added expenses of litigation; e.g., attorney's fees, court costs, interest, a huge hit on your credit reports, etc., and just pay the debt off.

California has a 4 year Statute of Limitations on "Open" and "Written" debts. So, it's highly conceivable that you could be sued for this debt.

IAAL

 

[Ladynred]

I'd be willing to bet that this 'lawyer' isn't even IN Calif and that would explain the reference to a now non-existant court. If that's the case, then this 'lawyer' is also likely nothing more than another collection agency. Who is it ??

As for the statute of limitations, its also conceivable that this debt is already beyond the 4 year SOL, so its important that you check your credit reports and find the date of last activity on this bad boy. If it IS past the SOL, then you can tell them to take a flying leap - if its not, then you must decide what you want to do. I must tell you though that paying on an OLD collection will NOT help your credit, a notation of 'paid collection ' or 'paid chargeoff' is still a negative.

 

[db1966]

Thank you for your responses.

This is not a credit card debt, but does the statute of limitations go back to my last payment on this account, or the last time something was charged?

My original question was, What would the costs be to me, if I went to court to fight this and lost? Could I be liable for court costs? Attorney's Fees and expenses? How much?

I think I have a good case to fight this alleged debt, but I don't want to go to court for a $2000 debt and lose and owe $5000 or more.

 

[JETX]

This is not a credit card debt, but does the statute of limitations go back to my last payment on this account, or the last time something was charged?

The SOL is set by your DOLA (Date of Last Activity). This means the latter of your payment or charge.

My original question was, What would the costs be to me, if I went to court to fight this and lost?

No one can answer that for you specifically. However, if a judgment is rendered against you, it will include the amount of the claim, plus attorney fees, plus court costs, plus interest.

 

[db1966]

So what would be a fair offer on my part to make this whole thing go away?

The original debt was less than $1,000, but with their finance charges for almost four years, it is now just over $2000.

What would you offer and should I try and wait this out until the SOL runs out?

 

[Ladynred]

First, you're going to have to find out just what that date of last activity is. The 4 year SOL applies to ALL debts in CA. and if you're approaching that 4 year mark, then it would be worth it to wait it out and then tell them step off. If you're not that close or just want to be rid of them, you can make them an offer. For a debt that's more than 3 years delinquent, I wouldn't offer them more than 25 or 30% - they paid pennies on the dollar for it - or less - anything they get is gravy at this point.