Legal Question in Credit and Debt Law in Michigan
Can a credit card company attempt to take you to court once, withdraw the request from the court, send you a letter saying that more or less the debt was forgiven, charge it off on your credit report, and then a year and a half later take you to court again?
3 Answers from Attorneys
Yes. Unless the statute of limitations has run or the court has dismissed the case with prejudice, the company can start the suit over again. You will need to negotiate to come to a resolution.
I would consider defending the second law suit by claiming that the debt was forgiven. A "charge off" does not have the legal effect of forgiving the debt, but a letter stating that the debt was forgiven may have effectuated a release. I have successfully asserted this as a defense, but I am not certain that the letter you received resulted in you being released of liability.
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