Legal Question in Credit and Debt Law in New York
collection account
I have an old debt from a credit card approximatley 5 years old. The original amount that was charged when I stopped paying it was around 5000. dollars. I recently wanted to try and settle this account which was bought out by Sherman Acquisitions. Recently I recieved a letter in the mail from an atty in Manhatten that says the balance is now over 12,000. dollars. They want a large monthly payment that I can not afford to pay. I really want to settle this but they are intimidating on the phone. Should I take a chance and let them take me to court? What if any rights do I have? Can I just start sending them money to show a judge I am trying to pay this debt? Any help would be much appreciated.
3 Answers from Attorneys
Re: collection account
you need to have an attorney to evaluate the paperwork. There is a 6 year statute of limitations for them to sue you, in New York.
You may want to file for bankruptcy and get rid of the debt.
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Re: collection account
While bankruptcy is an option, it is a BIG step, now that the rules of bankruptcy have changed. A better alternative is to settle the matter, but NOT TO MAKE ANY PAYMENTS OR ADMIT OWING ANY MONEY TO THE ATTORNEYS FOR THE CREDITOR. That would be a BIG mistake. You don't state your age, or financial situation. If you are elderly, on a fixed income, the creditor can do very little to get funds from you. Even if they have a judgment, they cannot take away social security or retirement benefits... If you go to court, the judge's role is to determine liability..whether or not you owe the money...and does not care about actual payment. I do know that many Judges in the 5 boroughs of NYC don't like the high interest and late charges (penalties) added in by credit card companies and often "suggest" that the creditor reduce the claim to the principal amount owed and allow monthly payments. You may want to go that route if you don't mind a few days hanging around the court. Just DO NOT ADMIT TO OWING THE MONEY IN WRITING TO THE ATTORNEYS...that would give them a big advantage down the road. If you need further advise, I am [email protected] and will try to help. Good luck.
Re: collection account
My experience is this...wait for them to sue you...the attorneys are much more reasonable than the collections agents...usually because the agents work on a bonus of amount earned on top of a base salary.
Feel free to email me with any questions.
Good Luck
RRG
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