QUESTION
paying a time barred debt, repossession deficiency.
Asked on Feb 09th, 2015 on Debtor and Creditor - Florida
More details to this question:
In 2009 my vehicle was repossessed. My Last Payment was June 2009. Through research FL SOL is 4 or 5 yrs, either which way mines is passed the SOL. I've never been sued or have a judgement from them. I want to pay the deficiency but I in no way can afford to pay the $14000 deficiency they are stating is owed on my credit reports. Should I consider filing for chapter 7 bankruptcy. In the future I want to purchase a home and Im aware that mortgage co. often do manual credit reviews dating several years past what's on current credit report. I want to tread lightly and don't want to seek the bank out for a settlement without resetting the SOL. Realistically, I would only be able to pay in a lump sum $1000, maybe $1500, which I don't think they would accept. Suggestions please.
1 ANSWER
Commercial Litigation Attorney serving St. Petersburg, FL
at
Law Office of Guy P. Coburn
Update Your Profile
First, I would strongly recommend you NOT file bankruptcy over a time-barred debt. That would hurt your credit for much longer, and there is no need.
Also, I would suggest that you NOT contact the creditor to pay this debt if it is past the statute of limitations, but if you feel that you have a moral obligation to pay something, then make sure you get an agreement in writing that your payment will be settlement in full AND they will remove the entry on your credit report BEFORE you pay.The best thing to do is to obtain copies of your credit report from all three credit reporting agencies, and challenge the entry about this debt since you no longer have a legal duty to pay it. Under the Fair Credit Reporting Act, the credit reporting agencies must confirm the validity of the entry, and most of the time the creditors will not bother to confirm the debt. This may get the entry off of your credit report without having to pay anything.
Answered on Feb 10th, 2015 at 1:40 PM