Declaring Bankruptcy

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Declaring Bankruptcy

Does anyone have any experiences in declaring Bankruptcy. Yesterday I received a letter in the mail from a collection agency for a credit card I had back in 2000. In 2003 I thought the bill was paid in full but I was going through some emotional issues and could have been mistaken. The point is I didn't know the bill was outstanding.

So that was ten years ago and yesterday I received a letter saying I owe over 7,000.00 to the collection agency. I darn near dropped dead. I am on disability and already have an outstanding credit card which I make monthly payments on. The problem is when I add the two together, I know in my heart I will never be able to pay them off.

So I made an appointment with a bankruptcy trustee for tomorrow. I really don't want to go this route but I don't see any other way. Is there anyone who has been through this or maybe there is another way. I am open to any suggestions or help.

Check your state laws. There is a statute of limitations on debt. In most states it is seven years. Don't send these people any money at all. They've probably bought this old debt and are trying to bluff you into paying. If you pay them any money, the debt could actually reset (depending on your state) and you would then be back on the hook.

Collection agencies often buy old debt for pennies on the dollar and then use all kinds of means to try and collect. They usually don't have a legal leg to stand on. Ignore them and they'll eventually go away. There are laws against collection harrassment.

Thanks so much for this information Millenia. I had no idea collection agencies did this. I live in Canada but I'm sure the collection agencies work the same way. I will definitely check into this further before dealing with these people again.

I did speak to a trustee about bankruptcy. I'm surprised she didn't mention this collection agency possibility. And I'm also surprised she didn't mention a statute of limitations. I did explain the whole issue to her.

I'm so glad you answered my post because now I have a better idea what to check for. thanks again.

The statute of limitation on credit card debt actually varies from state to state in the US. It usually varies from 3 to 10 years and in some states it's longer than 10 years. My own state is 4 years... two states away is 10 years.

I have no idea what your laws are about it in Canada, but speaking with some kind of financial adviser about it is probably going to be the best for you, as you mentioned.

As I mentioned, I did speak with someone at the trustee for bankruptcy office and I have an appointment with the actual Trustee next week. I'm hoping they will have all the answers for me. At least now I have a little more to go on and will know some of the proper questions to ask.

What the first poster said is correct. Do not start paying t hem anything because you then restart the statute of limitations all over again. Let the statute run and the bill expires. Good luck.

I will definitely remember that, Artistry and thanks for the reminder. They won't be getting any money from me and although I would love to avoid bankruptcy, I just can't deal with these people and I know they will never leave me alone. Here's hoping the Trustee has all the answers I need.

I have never filed for bankruptcy, but definitely considered it a few years ago when I was swamped with debt. I quickly sought advice from financial advisers and was told about the statute of limitations, which is seven years in the state which I reside. Collection agencies will never tell you about the statute of limitations and how they can restart it, when you simply make a payment.

Although your past debt falls off your credit when you let the statute of limitations run out, you still owe each company for your past due bill. I plan on paying off my old debts eventually, but of course the items on my credit are my first priority. I am thankful I did not declare bankruptcy because my credit has improved in the last few years.

Well today I go to see the actual trustee for bankruptcy. I have to say since starting this thread I have found out some very interesting information and now feel better equipped to have an educated conversation with the trustee. I am still confused as to why the worker in the office that I spoke to originally didn't tell me a lot of the information I found out here and that is one of the questions I will ask. Thanks to everyone for sharing your knowledge and experiences with me. It has helped me tremendously.

How did that meeting go for you, blueeyes? Did you find out that some of the things talked about here were different in Canada? (I hope not... and I hope the trustee was able to guide you in this!)

In either case, I assume that you're on the way to having this nightmare coming to a close, and that's a very good thing!

Also you can set up a payment on installment basis instead of declaring bankruptcy. As long as you stick to your agreement they have to accept it. One man I know had medical bills, he paid them a dollar every now and then. Seriously. Good luck.

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