Legal Question in Credit and Debt Law in Indiana
Old Credit Card bill
I closed a credit card in 2003 with a balance of $1000. I made 3 or 4 payments after the card was closed, but the min payment was getting higher than I could afford at the time & I kept on incurring late fees with the payment. On credit report show acct charged off but a collections is taking me to court for $1586. Is there anything I can do? Or try to make the payment 1/2 of orig balance?
2 Answers from Attorneys
Re: Old Credit Card bill
Your choices:
1. Litigate the case - maybe raise a statute of limitations defense.
2. Pay the bill.
3. File bankruptcy.
You need to sit down with a lawyer and discuss these options.
Re: Old Credit Card bill
You can offer to settle the debt for less than what is owed. Thr problem is now you have collection fees and or attorney fees associated with this. Often times the credit companies will settle for about 50-60%. However, if this isn't your only debt you may want to consult an attorney to see if bankruptcy is an option. You shouldn't file bankruptcy if this is your only debt.
If you settle you debt, the company can send you a 1099 for the balance they write off. Get an agreement in writing if you do settle. If you have more questions, feel free to contact our office for a free consultation.
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