QUESTION
What specifically has to occur for credit card debt to be reaffirmed?
Asked on Aug 28th, 2011 on Bankruptcy - Virginia
More details to this question:
I have a CC debt which the SOL has expired. The account on my credit report has an account in dispute notation. To close on a re-finance there can be no accounts in dispute on credit reports. So if I write credit bureau requesting dispute be removed will this result in the debt being re-affirmed? I would probably have to say the info on report is valid and not disputed. I would write the credit reporting bureaus but I am sure they would forward to collection agency. The dispute was placed when my lawyer wrote the collection agency and requested validation of debt. They sent info and nothing else was done and SOL expired this past February. Thank you for any info.
3 ANSWERS
Glen Edward Ashman
If the statute of limitations has expired and the debt is over 7 years old it cannot appear on your report. Discuss this with your lawyer.
Answered on Aug 30th, 2011 at 7:11 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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A reaffirmation is when you agree to pay a debt after you file a bankruptcy case. It has to do with a debts secured by property. If you want to keep the property (for example a car) then you reaffirm the debt in bankruptcy (with permission of the bankruptcy court) in order to continue paying for the property and keeping the property. It has nothing to do with what you are talking about. In your case you need to pay the debt in order to have it shown as paid if that is the condition of the bank for a loan to refinance a house. The fact that the Statute of Limitations has now lapsed does not mean that it is not an unpaid debt. It just means that the debt cannot be collected by suing you if you defend yourself in the lawsuit on the basis of the Statute of Limitations. You still owe the money but the creditor cannot force you to pay by suing you for the debt.
Answered on Aug 30th, 2011 at 6:55 AM
Bankruptcy Attorney serving Herndon, VA
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Maureen O'Malley
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Your lawyer can now sue them, as they only have 30 days to respond and if they do not the debt is gone. This debt is gone anyway, due to the SOL. It would be foolish to agree that an expired debt is owed, as that renews it.
Answered on Aug 29th, 2011 at 8:56 PM