Collections Law/Old Debt

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Back in 2008 and 2009 I was in some major debt.  Two children and an income that had dropped.  I started getting behind struggling with overdrafts and the story goes on.  I ended up having a breakdown and was in a treatment center part time for about 3 months.  I started getting my life together in mid 2008.  I made tough decisions to pay off the smaller debts.  My credit card went into collections to a collection agency in mid 2007 and I had been making huge payments automaticlly taken from my checking account  In 2008 I stopped the auto payments so I could pay my other bills.  A few times I considered bankruptcy but did not want to do that because I felt I could still make it.  A year and a half ago I lost my job and went to a lawyer about filing but the credit report only showed my one larger credit card that am still paying on time all the time.  The large credit card was not on my report and they had not attempted to collect in a couple of years.  Just 4 months ago I received a collection letter from a collection agency attempting to collect an $80,000 debt....when I received notice my account was closed in 2009 it was $26,000.

My questions is will they sue me?  The SOL in my state is 6 years.  It has been 5 years and 6 months since my last payment to the collection agency and 4 years 4 months since I received the account closed from the credit card company.  It has been over 6 years since I have used the card.

I got some information from a debt counselor and he said this is just too much money and if they were going to sue me they would have done this sooner.

I had hardship and my life is back now.  In about a year any negative marks on my credit will be gone.  I have a daughter just starting college and another one in highschool.  I cannot pay this much off and do not want to negotiate with them so it appears on my credit report.  

With your experience what do you think they will do?  Attempt to sue?  If they do that I would have to fight it and if it goes in favor of the credit card company file bankruptcy.

I appreciate any insight you may have.

Best regards,

Answer
My questions is will they sue me?  The SOL in my state is 6 years.  It has been 5 years and 6 months since my last payment to the collection agency and 4 years 4 months since I received the account closed from the credit card company.  It has been over 6 years since I have used the card.

Will they sue you?   No way to know for sure but with that much involved, and with the SOL expiration date coming up (it would be calculated from the date you made your last payment or purchase), they very well might sue you -  in fact, it is likely.

I got some information from a debt counselor and he said this is just too much money and if they were going to sue me they would have done this sooner.
I disagree – strongly disagree.    I have been doing this (debtor defense) for the past thirty years since I graduated from law school, and the debt counselor is simply mistaken.     

I had hardship and my life is back now.  In about a year any negative marks on my credit will be gone.  I have a daughter just starting college and another one in high school.  I cannot pay this much off and do not want to negotiate with them so it appears on my credit report.
If they do sue you, even if you get the debt discharged in bankruptcy, the negative on your credit report will still show for an additional ten years, starting on the date that they sued you.

Bankruptcy may be a good option – but that depends on some facts you don’t state in your question.   If you were to consider bankruptcy filing, I would charge you 250 dollars if you were to do a Chapter 7, or if (for whatever reason) a Chapter 13 was necessary, I would charge 350.    There is also a filing fee (for the court) of 306 for a Chapter 7, but you may qualify for a waiver, or at the worst, be able to pay nothing down when you file and the pay it in installments over four months.

You are welcome to call me if you would like to discuss this further.   I will not charge you just to talk on the phone if you decide to call.    915  261-3893

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