Legal Question in Credit and Debt Law in New York

Negotiation of Past Debt

I have been served with a summons regarding non-payment of credit card debt. The account was opened in July 1995 and I stopped payments in April 1997 due to loss of employment. As of December 2000 the account was not listed as a ''charge-off'' but as ''180 days''. Now as of April 2002 this actual debt is no longer listed on my credit reports. Nor did I receive a letter from the original creditor stating the charge-off. In good faith, I would like to start payments but would like to know my legal rights. How can I negotiate a debt of $6,000 when I am not sure when the statue of limitations starts and ends?


Asked on 4/17/02, 12:41 pm

1 Answer from Attorneys
Thomas Luz Pearce & Luz LLP

Re: Negotiation of Past Debt

The statute of limitations in New York on contract matters is six years. This means that the plaintiff has six years from your failure to pay to commence a lawsuit. If you stopped making payments in April 1997, the creditor would have until April 2003 to sue. It appears that the lawsuit is timely.

Most creditors (and their contingent-fee attorneys) are willing to negotiate a settlement for less than the full amount if you begin negotiating before they put a lot of work into the case.

Good luck.

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Answered on 4/17/02, 1:28 pm


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