"They're Getting Desperate: GIVE THEM THE FINGER!"
I am getting sued by a creditor. The account is about six or seven years old. Can the creditor collect money after all of this time? I live in Minnesota. - Jasmine
FOX then responds with a bunch of half-truths....
If your debt is close to the statute of limitations, but not quite there, you can still be successfully sued for payment. You will have to make a deal with the creditor or face garnishment of your income.
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You need to speak to a lawyer if you're threatened with such a suit (or if one is filed.) Do not respond until you talk to counsel, and do not blow it off! In addition, never, ever admit anything and do not talk to them over the phone. Debts must be verified as valid to be collectible. This generally means the collector must prove that you (personally) contracted the debt. In the general sense this means your original signature on the original agreement that led to the debt must be able to be produced. The entity dunning you also must be able to prove they own the debt. You have to be very careful how you respond to a dunning notice or phone call, or a lawsuit for that matter, because if you accidentally admit the responsibility it's identical legally to doing it on purpose.
If a creditor takes you to court and you believe the account is past the statute of limitations, you can respond in court with proof that the debt is too old to collect. If this is a significant debt, I recommend you get legal counsel from someone familiar with the laws in your state.
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Yes, that's good advice. In fact, that's the only good advice in this column. Talk to a lawyer first.
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One more thing to consider: If the debt is legitimate, why not pay it off?
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Go talk to the Mortgage Bankers Association and American Airlines, to name just two of many firms that have either jingle-mailed their buildings or filed bankruptcy as a strategic matter when they could have instead paid - and where there was no question as to the legitimacy of the debts and other obligations involved.
The statute of limitations laws are designed to keep creditors from popping up and claiming people owe money from the distant past - so long ago that no one can remember exactly what happened or prove anything one way or another.
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Bull****. The Statute of Limitations exists so that creditors must pursue debts in a reasonably-expeditious manner and be able to prove their legitimacy to collect. If they fail to do so that's their problem, not yours.
Some people get the idea that all they have to do is sit tight until the statute of limitations passes, and then they don't have to pay. If you really owe the money and can afford to pay it, you should.
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Another utter and completely-false appeal to "morality." You should pay only if it is in your best interest, on balance after considering all factors, to do so - and under no other circumstance. In many cases it is in your best interest to pay, but by no means is this always the case. Morality does not enter into it. This is a business decision, nothing more or less. Every corporation in the world, including those who are chasing you for the money - the banks involved, directly and indirectly - takes exactly this position. Corporations do this literally all the time - they use bankruptcy as a tool or simply give creditors the finger whenever it is in their best financial and business interest to do so. These firms cannot argue that you should do differently - they set the example, you're free to follow it.
Remember that when a bill becomes too old to collect, it doesn't drop off your credit history. It can stay there for seven years, lowering your score and making your financial life more difficult all around. A paid-in-full debt always looks better on your credit history than an unpaid one, no matter how long it took to pay it off.
Actually, the statute of limitations and the time a debt can stay on your credit report are rather close relatives. It is very likely that if you evade the statute of limitations about the same time, plus or minus a year or two, it will disappear off your credit report as well.
Don't believe the lies. Corporations, including banks, set the standard by which conduct in this regard is judged, and they strategically default - that is, default on purpose for the specific reason of avoiding payment on obligations they willingly and intentionally contracted - all the time. There is no moral or ethical issue involved here. It is a straight business decision and should be approached as such, whether the debt in question is your house, your credit card or anything else. SEE A QUALIFIED ATTORNEY and then make your decision based on one thing and one thing only - what is in your best financial interest. Period.”
- http://market-ticker.org/
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