Legal Question in Credit and Debt Law in Massachusetts

Credit Card Debt Summons

Hi There, I received a summons from a collection attorney on an outstanding debt that was written off in 2001. The amount written off was for $8,053.00 but the summons I just received is for almost $17,000. I do not have this money to pay. I have hired a bankruptcy attorney who sent them a letter offering a lump settlement or they would be faced with my filing chapter 7. I have no assets. I pay rent and have a car loan. I live paycheck to paycheck. The debt is 7 years old and pushing the envelope towards the statute of limitations. My question is, in situations similar to this how often do they accept the settlement offer vs actually going to court and suing me for the full amount? Thank you for your assistance. I really appreciate any feedback and insight you can share.

J


Asked on 6/27/08, 3:04 pm

2 Answers from Attorneys
JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: Credit Card Debt Summons

It's a simple cost/benefit analysis. Usually the credit card company bases their settlement decisions on the projected collectibility of the account. The more documentation the debtor can put forward to substantiate he/she's inability to pay, the more likely the credit card company will be to settle for a deeper discount.;)

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Answered on 7/16/08, 10:47 pm

Re: Credit Card Debt Summons

The statute of limitations is six (6) years from the date you made the last payment on the debt... if you paid them $1 today, then the statute of limitations starts all over. However, you have to go to file a timely answer and go to court to litigate this or you will end up defaulting and having a judgment entered against you.

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Answered on 6/27/08, 3:25 pm


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