QUESTION
Can or should I seek legal help to clear up debts that should in theory be falling away from my credit report and dropped by collectors?
Asked on Nov 15th, 2015 on Bankruptcy - New Jersey
More details to this question:
I/we (along with most of the developed world) had a total financial meltdown in January of 2009. We were victims of fraud among other things that destroyed us. I've been thinking for years that chapter 7 was my only practical way to start to become whole again. But just surviving all these years (no real income) it occurs to me that statutes may have run out on all the mess that occurred mostly during 2009. Some debts are sitting as judgements. Is 7 still the only way to get fresh new start?
10 ANSWERS
Probably yes. The judgments can last 7 or 20 years, and be extended at the option of the creditor.
Answered on Dec 01st, 2015 at 1:17 PM
Yes especially if there is judgments in place.
Answered on Nov 30th, 2015 at 4:12 PM
What appears on your credit report has nothing to do with whether or not you are legally liable to be sued by a creditor to collect on this debt. And filing bankruptcy to clean up your credit is like killing a mosquito with a nuclear weapon. You will kill the mosquito, but you will also kill your credit, and the bad credit of a bankruptcy will increase the length of your bad credit by an additional 10 years.
Answered on Nov 30th, 2015 at 4:11 PM
You can get a free consultation from many bankruptcy attorneys to review the statutes of limitations on your various debts. Judgments do have a longer life than other debts, and they can be renewed. So you're not likely to be in the clear yet.
Answered on Nov 30th, 2015 at 4:09 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Ch. 7 may not be the only choice, but it might be the best choice. It should clear away all the old debt-except for those excepted from discharge. Depending on your earnings and expenses, you might have to do a Ch. 13. Find a skilled BR lawyer to advise and represent you. It's all.o st always a good investment. Good Luck.
Answered on Nov 30th, 2015 at 4:07 PM
2 Awards
Each debt is subject to the statute of limitations on collection. A judgment can be renewed and never expire. Defaulted debt will show on your credit report regardless of collectibility. If you want to clean up your credit and assure no judgments will garnish your income then bankruptcy is the only option.
Answered on Nov 30th, 2015 at 10:27 AM
Bankruptcy Attorney serving Livonia, MI
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Charles J. Schneider, P.C.
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You have a bad theory neither credit reports nor credit reporting agencies determine whether a debt is owed. You still owe the debt whether it has been "charged off" on a credit report. It does not mean they will not choose to enforce nor does it mean that they will not sell the debt to a third party who will choose to enforce it. Judgments in the State of Michigan remain so for 10 years and then may be renewed for another 10 years.
Answered on Nov 30th, 2015 at 10:27 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
2 Awards
Judgments in Jersey are valid/enforceable for 20 years. Debts can be sued upon for 7 years from the date of the last payment. You may qualify for 7 or maybe you should look at chapter 13.
Answered on Nov 30th, 2015 at 9:54 AM
There is a 4 year statute to collect debts that were evidenced by writing. Those reduced to a judgment can last forever in theory. A BK or paying them off is the only way to get rid of them.
Answered on Nov 30th, 2015 at 9:54 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The statute of limitations doesn't apply to judgments. Judgments last forever unless you do bankruptcy. The statute of limitations will block debts that didn't become judgments. You need to evaluate how much debt is judgments and find when the statute of limitations expires on the other debts to make an informed decision on whether to file bankruptcy or not.
Answered on Nov 30th, 2015 at 9:54 AM