Legal Question in Credit and Debt Law in Massachusetts

Interest allowable in collection of debt
My credit card company "charged off" a past debt in 1996. Is it still collectible? I received a call from a lawyer's office that says his client (who assumed this debt from my old credit card company) is owed this money and, instead of the initial "charged off" amount of $4,000, it is now, with interest, $8000. I never received a letter from this entity/law office in the past, I just got a phone call out of the blue and was basically told that if I didn't pay $4000.00 immediately, I would be sued for $8,000. He said that the $4000 is the interest which has accrued on the debt. I tried to negotiate a down payment and payment plan, but to no avail. I know I owe some part of this debt and am not trying to get out of it, but how much am I truly liable for? Basically, I was told that I have 24 hours to decide. I am told that I have no options.

Asked on 3/30/00, 12:55 pm

Michael Baldassarre Law Office of Michael J. Baldassarre

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Re: Interest allowable in collection of debt

I need to know how long the loan was in default and whether or not there is a judgement.

In general, if an attorney is involved the debt can be settled for much less than what is owed.

If you have other debts and are over your head, you may consider bankruptcy. Consult an attorney.

You can keep more property than you may think. In alot of cases you can keep you home and car

and pension.

You may only have to pay back a portion of the debts over 3 to 5 years.

If you would like to discuss your options call 978 465-5158 .

Answered on 4/20/00, 9:26 pm

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