Q&A: To file Bankruptcy or not?

Question by Parker1967: To file Bankruptcy or not?
I live in Florida and have spoken with a Bankruptcy lawyer about my situation. I had excellent credit prior to a house I had up for sale being on the market for 6 months and tried to sustain two mortgages plus expenses on both houses and a lot of credit card debt, mostly used to fix up both houses.

It’s been since March 2007 that I made my last credit card payments. I took all of the $ 8000 I received as a tax refund and paid it on 5 different cards.
I called the credit card companies and tried to set up a payment plan of some sort because I was drowning. NONE of the 5 would and acted really crappy when asked. The phone calls also bordered on harassment.
So, eating ramen noodles and peanut butter started pissing me off. If they didn’t want to work with me, then I wouldn’t work with them.
I changed my telephone number and stopped paying them.

After speaking with an attorney early this year, he stated that unless I was faced with court papers to appear, to stave off filing for bankruptcy. If I did file, it would be for Chapter 13 he stated.

I wanted a second opinion so here I am. My questions are…

If I do not file, the statue of limitations runs out in less than 2.5 years for the state of Florida. If I am not served a summons, after the SOL runs out, can they still serve me with papers?

If there is no summons or judgment, will the charge off debts stay on my record for 7 years from the last time I paid the credit card company? Or when the debt was sold to a collection agency which I think is usually a year afterwards (they all have been sold).

If the debt is sold again to another collection agency, does my time start over?

On my credit record, will there be an entry for the credit card company debt AND the collection agency?

I simply want to know when the credit card company debt and charge offs will drop from my record if I do not pay them.

Thanks for any help you can provide…
The SOL is 4 years, it will run out in 2.5 years since my last payment is what I was referring to.

Best answer:

Answer by andy
It would be seven years from the latest sale of your credit card debt before they will come off of your record. Until they fall off your credit is going to be really bad.

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3 Comments/Reviews

  • Jesse G says:

    Try this. It`s may help.

  • S P says:

    I’m not sure where you got the SOL for your state, but, you can review this website….open accounts show in the state of florida they SOL is 4 years, not 2 years. It goes by the last date YOU paid. If they do not contact you within the 4 years and “find” you, it will be past the SOL and time frame from suing you…if you are lucky enough to hide that long.
    If you have consulted with a bankruptcy, the bk attorney must have looked at your income which would have been too high to qualify for a chapter 7, total discharge of debt….the chapter 13 would run you either 3 or 5 years to discharge and pay the payments thru the bk plan.
    On your credit report, yes it can list the original creditor and the collection agency collecting on the debt or it can also show as transferred debt, which would go to another collections agency.
    If you want to hold off on the bk….you have until they sue you and take you to court, you can file the bk the day of the court date suing you to get a judgement and garnishment. Be careful if you are taking the risk of the debts being forgiven and forgotten, a judgment they can and will attach to your paycheck, most states @ 25% and bank accounts, 100%….These sites can help with some answers as well…www.bcsalliance.com http://www.totalbankruptcy.com and http://www.usbankruptcy.gov

    Makes a little more sense now with 2.5 years left..you can try and see if they don’t sue. If they do try to sue you after the SOL is over, appear in court, defend yourself and state that the debt is “time barred”, most likely the judge would dismiss at this point, see it is passed the SOL…If by some reason they do try to collect, scavenger collectors buy these accounts all the time, they will try and hunt you down and have you admit to debts that are way over SOL…don’t admit to anything….hubby did some hiding and SOL is way passed…I just answer the phone and tell them I’ve never heard of him, they can’t do anything legally…bad divorce and home foreclosure, but…can’t sue and he has re-established his credit after 5 years, so, it can be accomplished.. If you don’t to do the bk…ride it out and see what happens….it’s still an option if they try to sue and garnish…debts will be there 7 years and the bk for 10, but…you can re-establish as soon as a few years passes either way….I filed last year, and already and re-building and it’s not as bad as all perceive…I’m alive, kicking and I’m not homeless…so, there is life after it all..Wish you well !!!

  • jennifer d says:

    Well in the uk , if they cant find you for 6 years then you dont have to pay back the money . But dont quote me on that.
    If your debt is sold to another agency , it will still feature on your record.Sometimes your debt remains the original ammount plus any charges they want to add and sometimes the collection agency will add fees. This has happened before but not with a credit card .
    So just move 6 times every year but move to rented accomodation. But if i were you look into IVA , which we have in england but im not sure what u call it in the US.

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