Legal Question in Credit and Debt Law in Texas

Debt collection

Since May of 1997 we have accumalated a debt of approx. $16,000; the original debt was about $9500. Finance charges and penalties have caused this to escalate because we were unable to pay the minimum payment. We have been paying $50.00 monthly, but by doing this we have learned that we have kept this account active. At this time we cannot pay any negotiated lump amount or increase our monthly payment significantly enough to make headway. What are the consequences of stopping payment? How long will this remain negatively on our credit report? I have heard something about debt forgiveness; can you give me some insight on this?

Thank You,

Mario


Asked on 7/03/03, 1:47 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Debt collection

Stopping payment will, at least, start the clock running on the 4-year statute of limitations. They will probably sue you for the unpaid balance. The default will emain on your credit report for seven years. The judgment probably taken against you will also remain on your credit report for seven years.

Debt forgiveness is something between countries, not between lenders and individuals.

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Answered on 7/03/03, 10:05 am


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