Past Debt Caught Up With Me

[saralee]

michigan. Most of these credit card debts are from 2002-2004. I pulled my credit report and found that all five creditors wrote off the debts. These debts were sold to a collection firm. on my report was a bad rating from the origional creditor and then the collection firms that bought the debt. how is that legal and does that start the sol over. I am currently being sued by one of the firms. i don't know what to do. they are suing me for 1,200 more than the origional debt. I want to clean up my credit but don't know what to do.

[gigirle]

how is that legal

????? are you joking? Do you think it's legal to use a credit card and not pay for it 6 years later? It will start to go away when you pay it. If you don't the ones you are being sued by will get a judgement against you and then they will garnish your wages. You will also have to pay court costs/lawyer fees if you get a judgement. This is what happens when you don't pay your debts. Do what you can to set up payment arragnements with the law firm.

[RedT]

michigan. Most of these credit card debts are from 2002-2004. I pulled my credit report and found that all five creditors wrote off the debts. These debts were sold to a collection firm. on my report was a bad rating from the origional creditor and then the collection firms that bought the debt. how is that legal and does that start the sol over. I am currently being sued by one of the firms. i don't know what to do. they are suing me for 1,200 more than the origional debt. I want to clean up my credit but don't know what to do.

Before you do anything, including even talking to these people, make sure that they are not barred from pursuing these debts by the statute of limitations. The Statute of Limitations in Michigan is 6 year, so some of those debts may be barred.

Also, and again before you even talk to these people, sent them a letter of dispute and ask for "verification of the debt" (sent certified and return receipt). It is the debt collectors burden to prove that you owe this debt (not your burden to prove that you don't) and a lot of these debts are so old and have passed through so many hands, the collector may have few or no records.

If you get sued you MUST answer, or they will get a judgment against you (by default) even if they have no evidence. At this point you may need some help (but might be able to make it a go without an attorney. Here is a good websites that can give you advice:
http://en.allexperts.com/q/Collections-Law-912/

Oh, ans yes it is legal for them to charge you interest and attorney fees, but courts will often reduce these fees to something reasonable if they are really outrageous.

[alek1980]

gigirle at times you seem so hard on people trying to ask questions. You tend to take it to a personal level. It's just a question if you have an answer please just type it down for the person. Am sure at the back of her mind she knows that the only way this can go away is by paying back her debt but again both you and i don't know her financial situation. Some of us are here to get some advice and not here to feel as though we are such losers of some sort.