Re: So many more questions.......

Posted by Linda on November 26, 2001 at 21:21:49:

In Reply to: So many more questions....... posted by Ken on November 26, 2001 at 14:53:44:

1. I am unsure about the rules of statute of limitations. Does this mean that sol has to come up before these companies may take me to court? Can they sue me before sol?

Don't have a neart attack reading this - read the whole thing!! You have this backwards and a little sideways ;) The SOL runs from the date you default on a debt, until the time period designated by your states laws is up. During this time, your creditors can use any means they choose within the law to make you pay them, incuding take you to court. Usually, if they do take you to court before this time is up, it's because they reasonably expect that you have or will get money to pay them with. After this timeis up, no one can make you pay. They can still call you and harrass you, but even if they sue you, all you have to do is go to court and tell the judge that the SOL is up, and it will be dismissed.

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2. If I find a way to pay back the debt before sol is up, is it still in my best interest to do so? Are there any exceptions? ( Not that I don't intend to pay...I just don't have the means right now and would like to know all possible options).

Generally speaking it is always best to pay if you can. The exceptions to this are if the debt has been written off by the original creditor, the SOL is up or almost up, and the 7 year reporting time (the time it stays on your credit reports) is up. there are other reasons not to pay, but these are the ones that I see most often.

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3. Are there any other ways of settling the debt? I've looked into credit consolidation, but the best they could offer me is $200 per month. This is a little steep because the only money I get right now is SSI.

If you are living on SSI, then I take it some unfortunate circumstances have come about to cause your situation. I would not owrry too much about unsecured debts at this point. Pay your rent and utilities - you are most likely in survival mode (been there myself). You can't help what has happened, don't lose sleep over it because you feel guilty.

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5. I have heard that despite my situation, even if it leads to a charge off, I am not in danger of losing my apartment.I was wondering why this is? Is paying rent a form of establishing credit?

I doubt that you will lose your apartment over a charge off if you pay your rent. A good record of paying over a period of time should be enough, plus, if you are on SSI, it is not the same as someone who decides they don't want to pay anymore.

Have you considered bankruptcy? I think you would qualify for legal aid, and you could take care of this once and for all. Then when your health is better, you can start fresh. It is much easier to start over after a bankruptcy than you would believe. It only takes about 2 years to rebuild. And I am sure that you need your energy to recover, you shouldn't spend it fighting with bill collectors and worrying about losing your apartment.

No need to apologize, this is important stuff. Ask away, if I don't know the answer, someone else will. :)

And no need to be embarrassed. How do you think I learned all this stuff? It wasn't in school, LOL.

Linda

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