Statute of Limitations And Lawsuit
My question involves collection proceedings in the State of: Alabama
The collection agency in question is located in South Carolina. The loan took place in Alabama. I have reviewed SOL's for both Alabama and SC and it appears the SOL, no matter the classification, has run out.
A family member received a voice mail with a message that they were attempting to contact me. Not really sure the connection there, as I have never used him as a reference and moved out of my parents home when he was still a minor. This debt is 15 years old. Furthermore, the school where the loan originated had my address wrong in as many years, therefore I have never heard a word about this debt until this week. I had other federal student loan debts from another school which were offset through my federal refund and any remaining loans are being taken out of Social Security benefits. I am now working with that agency to file a "Total, permanent disability" to have it forgiven.
I only have one asset, a home which my name appears jointly on a deed.
Assuming the SOL has run out and this was not a federally secured loan, what is the likely scenario? I certainly do not want to lose a home over a tuition fee that amounts to less than 2,000 dollars. Do courts normally throw out these cases when considering the SOL?
I have a family member insisting that filing a quit claim deed to the property is the best option. Is this really the best thing to do? She also insists that a judgment could be filed without my knowledge and a lien placed on the property.
I would appreciate help from anyone who could get her and the creditor off my back... and I promise to keep my financial woes to myself from now on.
Re: Statute of Limitations And Lawsuit
Was this a federally guaranteed student loan?
Re: Statute of Limitations And Lawsuit
No, I did fill out the financial aide forms and the advisor sent them back to me stating it contained errors. I guess I threw myself into studying for classes and such, I returned the forms too late and missed the deadline for the aide. I moved out of state briefly before the term ended and came back within six months but to a different address than I had when I enrolled. I guess this was where the address confusion came from, but upon talking to the loan advisor yesterday, she had an address for a city that I have never lived.
The collection firm is trying very hard to get me to make a payment in order to "secure payment arrangements." I read on their website that they have "teams specially trained in attempting to reinstate statute of limitations, either by written agreements or the form of making a payment." I assume they know full well that the statute has run and this is their last resort. I actually feel bad about not paying this bill, but now that I am disabled and am on limited income, I cannot predict that my financial future can keep up with their payment demands. Therefore, if I do anything to reinstate the statute of limitations and fall on hard times, the home in which I am named on the deed would become an issue.
Should I just go ahead and send the cease and desist letter? Thanks for you help!
I called the collection agency for the last time to confirm whether or not this was a federally guaranteed loan. She confirmed it is NOT. I requested a break-down of the fees since I have never received any correspondence concerning the debt. Should I proceed with a cease and desist letter upon receiving their break-down or should I send it out right away? Thanks again.
Re: Statute of Limitations And Lawsuit
Take a look at the sample letter in this thread.