Legal Question in Credit and Debt Law in Michigan

credit card debt

At the time my husband became a victim of downsizing some years ago, we had a credit card debt of $5,000. Due to interest, this debt is now at $13,000. We have made arrangements with the collection agency handling this account to pay $250.00/mo., which we are doing. Interest, we're told, won't be waived, so only a few dollars of this $250.00 payment goes towards reducing the balance. We are getting collection agency calls constantly, as well as letters and notices, but we can't afford to pay more per month. Now they put another agency on our case and we are hearing from them also now. What will they do if we can't afford to pay more than the $250.00? They are getting quite nasty. Are we okay if we keep paying our verbal agreement of $250.00? We put this in writing to them, but they never responded. Thank you for your help.


Asked on 11/28/05, 1:22 pm

1 Answer from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: credit card debt

If the balance grew from $5000 to $13000, there is a good chance the statute of limitations had expired (6 years) in Michigan. However, making payments renews the statute. If you had consulted an attorney back then, you may not have had to repay this debt. Nevertheless, given the facts you have provided, $250 a month sounds like a sufficient payment to me. The creditor is entitled to sue absent an agreement in writing. I do a great deal of work in this area on behalf of debtors. If you would like legal counsel, please call me at the number listed in my attorney profile: two four eight six seven nine one five five two.

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Answered on 11/28/05, 3:46 pm


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