Question about old debt

I’ve received a letter from a lawyer about an old debt; I can’t remember if I made a payment less than four years ago (the statue of limitations) or not. I looked at my credit reports and it’s not on any of them. Does that mean I’m in the clear? If I get sued, I’ll have to file for bankruptcy.

It’s been 4 years since they contacted you about thsi debt? And it’s not on your credit report. i don’t think this creditor has a chance in hell in collecting money from you. How much is the amount for? Also, what was the loan for? If you have a bank account that you have used for years, you can ask the bank for check records dating back that far I believe. They keep records of all that. They may even have the wrong person…

I am not sure if you are in the clear or not. Some other people in this group seem to have much more experience than I do and will be able to help you with that. I am sorry I cannot give you any advise.

If you don’ t mind me asking: is there really a statute of limitations on debt? If yes, can you (or anyone else for that matter) please tell me about it or refer me to some resource where I can read about my rights as a debtor.

Thank you and best of luck getting rid of your old debt. You should be able to call the company that the lawyer is saying you owe and have them send you something in writing that states you owe no money as of this date. They will tell you verbally, but insist in a nice way that you need it in writing to cya. Then send a copy of this to the lawyer registered mail so you have proof that you sent it.

There is a statute of limitations on old debt. It is different for each state. Ask an attorney or someone in your particular state for the most up to date information.

Yes. There truly is a statute of limitations on debts. It is one reason the even bankruptcy is not reported after 10 years on your credit report.

It is also why so many creditors sell off debts. They are trying to collect anything at all on them. In reality, the debt ALWAYS starts at the original creditor, not collection agency #4’s efforts to collect it, and they all know it. They just hope you don’t.

Re: My mom said I am insane to marry him because of debt

My advice would be pay 6000.00 towards your cc debt. Then transfer your balance to 0% and save on interest….Pay down your debt first before buying other things. You’ll be glad you did…

I think id be quite concerned about marrying someone who is so deeply in debt and easily willing to dive into more debt. He owes 16,000, and wants a big wedding? I understand the desire to spend less on the heating since thats a necessity and would help. I really am not sure how you should spend the tax return but I would most definitely put off the wedding. Why dont you both make a serious commitment to paying down the debt? This way your start your marriage on a good note, prove to yourselves and your families that you can do this. Making decisions together financially is a huge part of a good marriage. If you guys dont see eye to eye on this its going to be a long and rough road.

I also wondered about this. Reminds me of a caller to the Dave R show, her husband wants a house, and he wants it now, but they (Mainly HE) owes so much and she’s from a poorer family and knows how NOT to spend on things.

This is turning out to be she is not a ‘wife’ but is a Mommy. She said he does go to POUT and whine mode if he doesn’t get his way, and this to me is abhorrent. Be very careful with this. Court house wedding or not, he should be happy as heck to find a love with you and not give a darn about how big a wedding is. I know many a huge wedding *I* served in as bride’s maid, entertainer, and attendee, and all but ONE ended in less than 3 years by divorce.

He should get out of this debt, or if it was his wife drumming all that up, petition HER for payment too, then you guys can have something to Play House with.

My mom said I am insane to marry him because of debt

marriageHi all,

wow where to even start….I hope I don’t confuse you all by this…

My fiance and I have been together for just over 2 yrs now. he wants to get married in Oct of ’09, to me it don’t matter cuz I am not going anywhere. He has 16,000 in cc debt due to a bad divorce. My mom said I am insane to marry him with so much debt and we should wait til it is paid down or off.

He just got done doing taxes and is receiving about 6,000, but the only problem is that we also want to get an outdoor woodburner (cost is about 8000) to help on heating costs. with the price of propane it was 1500 for us this year to heat and its only going to get worse so he thinks getting a woodburner will help out (we can get free and very cheap wood). I know it will but would really like to get rid of the cc debt.

Now one advantage of us actually getting married next year would be that we can file married and we would get more in eic cuz I have 2 kids right now that he will be able to claim, but it will also put us behind on paying more off on cc debt cuz we will need money to pay for the wedding (he wants a nice wedding cuz his last was in the courthouse).

we have a chance to transfer to a 0% for a year cc and our bank told us to do it. I didn’t tell her about the 6,000 from taxes we are getting back. should I pay off 2 of the cc’s and then transfer the others or is it best to transfer all of them and then pay a sum on it that way? does anyone know any idea what kind of savings will I have made doing either of the 2 ways or won’t it matter either way? this will all be done in the next week as we will have the 6000 by then, that is if he decides to pay on them or purchase the woodburner.

I am up in the air on what to do. I want to save as much as we can in all directions, but I am really getting stressed out since I am the one that takes care of all the bills. Any advice is greatly appreciated and will give me lots to think over and see what our best route will be. thanks so much in advance!

Re: Good idea here

I work for SSI program so I do sympathize with you-they penalize you if you have anything of value and of course, COAs do nearly match our current inflation rate.
Why not try a Habitat Reuse center, they have all sorts of building materials that they have xtras of. A good majority of the house materials are donated NEW, for the Habitat home program.

On the other hand, you could always try to earn ‘undocumented’ earnings. I know of a few who keep a step ahead of SSI, about that.

I did go to that for a window, but what I brought home was so bad, no screen, wrong type… nuthin’ like what we actually needed and we would up having to buy a new window. Flooring is in VERY high demand and if you’re not at their center when it’s there, with a car or some way to get it home, you’re out of luck.

When I go to our local one, it is like no one helps you, and when you have a vision problem, that is not a good thing.

My buddy who is a contractor can get the materials and such at cost, but it is the actual saving up for the initial outlay. Short of cutting a hole in my mattress and stashing any cash there, I hate that because too easy for other things o come take it away… a big bill, some other thing like yesterday with the window crack’d and all…

While I do appreciate SSI and what it DOES do, I wish they’d fix that limit. that is from years ago and with everyone shouting that ‘one is only 2 paychecks away from homelessness!’ and ‘but you should have 6 months’ expenses saved up!!!’… back then, $3,000.00 would have been fine. Now people are incredulous that I live on a grand a month :-\ because the monthly income out here is about $2,200-2,500.00. I am very fortunate to own my home, but I guess I’m in hopes of a better savings limit. We’re all trying to live debt-free, but when one isn’t allowed to save over a certain amount, it’s pretty tough to do. I even had to apply for a loan online from www.wegot1000 – they really saved me a few times. Recommend them to everybody. Great guys, no BS.

I also do try to earn a little “sumthin’-sumthin’ ” on the side, but it’s never very much. My P/T job is reliable and also fun so I am mostly ‘legal’ (!)

Good idea here

I have one for you all…

I’m in Part time work and receive SSI for blindness of premature birth.

My income is roughly $15,500 a year from work and $3,072.00 from SSI.

When I get a little money ahead, something comes along: I had had hopes of knocking off one whole debt with my tax break, but the dog’s boosters are due, and while cleaning the windows today, I found one pane is cracked top to bottom in the roommate’s room. About $120.00 (I’m guessing until tomorrow when I can call the glaziers shop) to fix.

Bang goes that hope of one less debt, but at least I will not incur MORE debt by just paying the needs here.

My situation is: I am only ‘allowed’ to have $3,000.00 in savings or cash etc, under SSI.

So it begs the question:

When I get this ‘frakking’ debt gone and want to get new floors in my house, is it better to get a bunch saved up and purchase a gift card or something for the floor fixings? To do my whole house as wished (Generic ‘pergo’ and tiles) it will be around $6,000-8,000.00. If I try to save that much, SSI would take away my benefits.

[Note that outside of the actual money I receive from them, I am also under the Medi-Cal system. Losing medical would pretty much kill me off with my health issues, so I have to be somewhat cagey about getting the floors without saving “too much” or getting a stupid credit card or something later.]

The other alternative would be to pay off the signature-closed-end-loan to my credit union and apply for another one when I am free of my debts. At 11% or less interest, it’s one way to pay the floor fixings and installer off in one go and pay them pack on the terms the FCU set. I’d thought of doing one room at a time, but I always fear getting mismatches and ‘discontinued’ (Having to go with another style/colour/whatever). I had had hopes of getting this all done in one go and not live in a shambles for the rest of my life.

What would you do if in my place?

One more down Debt death!

A $180.00 bill will be gone on friday!! YAAAAAAAYYYY!!! I will be using my ESP ($600.00) from the IRS to pay off Penny’s soonest of all

  • Next is Penny’s, 3 months projected to death freeing up $100+
  • LOC at Downey 6 months projected till death freeing up $80.00 what I usually pay
  • K-designs (GEMoney) 15 months projected until death freeing up $82.00
  • My kinecta closed end loan 20 months projected… Freeing up $200.00 minimum/Month
  • Target 20 months till gone, freeing up minimum $60.00
    Kinecta Credit card 30 months…. if not sooner

They may work out more quickly than I have here, getting a few more hours at work and also done a couple of music gigs for money too. I’ll be having a sale here too to de-clutter and raise a few bucks as well.

Once my tax return has been received I plan to put a $1,000 on my very large BankAmerica account which is currently at 15.99% and growing. I am currently signed up for a free online personal finance course so that I can develop a budget. Never having done one, I am making baby steps, and hopefully will be out of debt before I retire.

I would be interested in the website for the free online personal finance course if you are willing to share it with the blog.

Sure, It’s www.daveramsey.com. You may start by watching this video: