Legal Question in Credit and Debt Law in California

Re: Letter from a law firm-debt recovery

How old was the debt? Sometimes claims of amount owed are beyond the statute of limitations. We would need to review the letter. Please contact our office.

Re: Letter from a law firm-debt recovery

continued debt negotiations until you reach a mutually acceptable settlement amount, or bankruptcy in the alternative, if the alleged debt amount is more than you feel you could ever reasonably repay.

Re: Letter from a law firm-debt recovery

Some of your options might include:

1. Filing a chapter 13 bankruptcy in which you pay 20% of the debt through payments over the next five years.

2. Filing a chapter 7 bankruptcy in which the debt is totally discharged.

3. sellling everything you own and hiding the money.

4. Create an irrevocable trust whereby you only recieve money for special needs.

5. Get divorced and allow your ex-spouse to get a big spousal support award. Once she attaches your wages, your creditor cannot.

6. Do nothing. The worst that can happen to you is that a maximum of 25% of your wages get taken and the creditor will have to hand over $50k to $125k to you before taking your home.

Re: Letter from a law firm-debt recovery

My colleague has a sense of humor. One thing you should consider is when you last paid on this bill. If it's more than 4 years, the statute of limitation has run and the debt should be uncollectable.