Legal Question in Credit and Debt Law in Florida

Re: Unable to repay credit card debt - legal ramifications

There are various legal ramifications. First, just because a law firm is now the collection agency does not mean that you are being sued in court. If you can't afford to pay the debt, then consider the following:

1. Bankruptcy -- if you are really in debt this may be the best alternative.

2. Send a cease and desist letter to the law firm stating that you do not have the funds to pay this debt and ask them to stop calling. After 5 years from your last payment, they will not be able to sue you anymore, BUT it will still appear on your credit report for 7 to 7 1/2 years. That is the general rule of law.

3. Pay the debt. NOTE -- IF YOU PAY ANY PART OF THE DEBT, YOU RE-START THE CLOCK. What that means is that the 5 years statute of limitation will begin again.

4. Ignore it all. If you do that, and you get served with documents, expect that a default judgment will be entered and they will then attempt to garnish your wages. Yes, they can even try to garnish your SSI check.

Well, your choices are bad and then worse. But at least, now you can make an informed decision and understand the consequences. If you want to try to recover your credit, on my website www.FloridaCreditLawyer.com there are various articles free of charge. Please let others know as our firm believes in providing consumers free information so that they learn their rights.

Good Luck.