Legal Question in Credit and Debt Law in Georgia

A settlement may be a good idea, or a bad one. No one here knows the answer as we don't know the terms and amount of the settlement or age of the debt. You need to sit down with a lawyer and you may already have blundered in discussing the old debt.

I would agree with Attorney Ashman that you should have gotten an attorney. Without looking at the actual letter, it appears to be ok.

Keep their letter FOREVER. Make the payment EXACTLY as it states in the letter - get a physical address where payment will be made and to whom. Don't write a personal check, Its better if you can get money orders or a certified cashier's check from your bank. Make a copy of it before it is sent. Keep the copy FOREVER. Send the payment via UPS or FedEx (its more expensive but worth it). Track the package delivery and print out the proof of delivery. Save it FOREVER. Include a note in there requesting that the debt collector send you a settled in full letter within 30 days after the payment clears and mark the account as closed with a zero balance owed. Get them to state in the letter that they will direct their client to report the account as closed, zero balance to the credit bureaus. If you do not get a letter from them within 30 days, start calling and demanding one and be a pain-in-the-butt about it till you get one.

They should send it but it depends on who you are dealing with - some debt collectors are decent and some are horrid (especially if they are from Buffalo which is the scuzzy debt collection capital!). Hopefully, you will get the settled in full letter. If so, keep it FOREVER. If the debt does get sold to a real low-life collector, then you will have the proof that the debt was settled. If you do what I have said, you will have all the proof you need.

I'm not kidding about the forever part. Debts have a way of re-surfacing even after they have been settled. If you do not have proof then whatever you have done doesn't count.

Since you have gone so far to do this on your own, I am not certain whether you should get a lawyer at this point or not for this debt. I would respectfully disagree with Attorney Ashman on thispoint. I do not think like a litigator when it comes to debt settlement so a lawsuit or fear about you waiving defenses is a not my main consideration. My focus is on resolving legitimate debts.

Generally, GA debts (for debts that were created in GA) are governed by a 6-year statute of limitations. The period begins to run from the date of your initial default and a creditor or debt collector has 6 years from that date to sue you.

If this truly is your debt and it has been less than 6 years, then resolution via settlement is the best thing. If no payment has been made for 6 years or more, then there is a question as to whether you should pay. If you will not need credit any time soon, then don't. If the case goes to court, in t hat case, it would make sense to hire a litigation attorney and try to get the action dismissed. If the judge agrees that the lawsuit is barred by the statute, it will be dismissed and you will owe nothing on the debt.

The debt can only stay on your credit report for 7 years from the date that the debt was first sent for collection or charged off by the original creditor. It does not matter when the debt was acquired by the debt collector. If they try to tell you something else, they are lying and your credit report can be disputed if it contains the wrong information.

If you are going to need credit soon or are refinancing your house or even for peace of mind, then go ahead with the settlement.

This is just general advice based on what you have stated. I don't the facts or all the circumstances of your situation and my advice could change. If you want to discuss the specifics of your case in confidence, I give free consults via email. I also settle debts for a reasonable fee. Please contact me at [email protected] if you are interested.