Expert: Creditwrench - 12/5/2008

Question
QUESTION: I have been receiving calls from an Attorney's Office, about 3 times a day for months now concerning dn old credit card debt.  I originally tried to explain my situation and work out an arrangement with them, but soon stopped answering the phone all together.  This debt is from around 2001 or 2002, I really can't remember.  Today I received a summons notifying me that the Attorney is taking me to court for the amount owed. With legal fees it is about $5500.  The debt was originally with Povidian.  The Plaintiff is Midland Funding LLC, and the Attorney is Trauner, Cohen & Thomas LLP
About me, I am 30 years old, never married.  I have temporrary guardianship of my sisters 5 children ages 3, 4, 6, 7, and 9. They were placed with me by DFCS almost 3 years ago.  We live with my mother who is 68 years old because I obviously need someone to help me raise all these children.  I have been unemployed since March 2008, and recently went back to school so I am currently a student.  I own absolutely nothing except my car.  I have nothing in the bank.  Right now my only income is the child support money that I receive from my sister (the kids mother) and one of the fathers (there are 3 different dads).  I am trying to better myself so that I can financially support myself and these children.  I would like to get out of debt, but simplky do not have the resources at this time.
How will a judgement affect me in the long run?  What are my options for dealing with this?  I know that once I become employed they could garnish my wages.  Can they take my income tax return as well

ANSWER: Let's look at your options rather than the answers to all those questions because the answers are the same. So rather than worrying about what they can do to you let's worry about what you can do to them!!! That debt is way beyond statute of limitations. At least in most states and you didn't tell me what state you live in. Hopefully you don't live in Ohio. You options is to respond to the summons with a motion to dismiss. If you can prove when you made your last payment to Providian then you should win easily. Once you win then you have the option of going after them in federal court for misrepresenting the legal status of the debt. Sue them in federal court and you will win the case in a walk just as you should win the local case. You would have to sue the debt collector and the attorney. Both are liable under the statute. They will end up asking you how much it is going to cost them to get you to go away and leave them alone. You could possibly even be able to file in forma pauperous and not have to pay the $350 filing fee until you win the case. They would have to pay the filing fee. So what do you want to do, worry about what they are going to do to you or spend your time in productive ways? It is up to you.



---------- FOLLOW-UP ----------

QUESTION: Thanks so much. Just one more thing.  I am not clear on the SOL. Does it begin when the last payment was made? Or when the debt was reported to credit reporting agencies like Equifax?  While I do not have proof of my last payment, I have a credit report printed from all 3 major reporting agencies that show the date of last payment as 10/2002.

Answer
If that is the best you can do then that is what you will have to go with but you will have to add 30 days to that date. That would make it 11/2002 as being what you will have to go with. So when did they file the case? Don't make any difference when you got served. When did they file the case?