Legal Question in Credit and Debt Law in California

Problem with collection agency

In '95 I co-signed for an education computer loan through IBM. 2 yrs later the person I co-signed for defaulted on the loan, then in '98 he filed chapter 13. At that time I was told by the lawyer, loan company & collections that I would no longer be contacted or billed for the acct. That it was to be paid off through his Chapter 13. His lawyer sent copies of the bankruptcy paperwork to keep on file. This paperwork states that he is responsible to make payment 100% to the loan and that the co-debtor is responsible for 0%. It also states that any balance due on student loans/financial aid after the bankruptcy completed will be paid in full. Now, after 9 years, I receive notice from NCO Financial for $2300 to be paid immediately as a settlement. I contacted the loan company & they said the acct has been sold to NCO. I spoke to a cust. service rep & their supervisor, but no one could give me any info on the acct or it's standing when it was closed. I then contacted NCO and they say the last payment to the acct was 8/2001. I explained the situation in 98 and that I hadn't received any billing/phone calls regarding this account for 9 years. NCO says according to their records I'm the ONLY debtor on the account. What are my options?


Asked on 5/14/07, 12:02 pm

1 Answer from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Problem with collection agency

Your best option is to ignore them. It sounds like the statute of limitations has probably expired. If you are sued, you should contact an attorney immediately, but if you do anything else you may restart the statute of limitations.

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Answered on 5/16/07, 10:53 pm


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