Expert: Michael Brotherton - 12/21/2007

Question
I am being sued by some debt collectors.  I don't know which one's they are since I recently was homeless and now at a new address. My father still resides at the address the collectors have and servers have come to his home only to hear from my Father about my homelessness and my Father hasn't given out my new address to them.

I haven't gotten any papers served to me in person, yet.  I recently was able to pay off the debt I owed to my old bank and I am clear to the banking systems.

I owe money to the engery company, cable company, cell phone company, and three credit companies.  

The address is in Waterford Michigan so I assume they would all have to sue me at that local court, right?

Can I lose or be defaulted on if I've never actually been formally served?

Can I open a bank account?  They will ask for my current address.

I was told once that if I was unreachable for a long enough period of time these debts would expire, is that also true?

How can I get out of this mess and pay the least amount of money?

Also, when I go to the court house to get my public record, can I get served then?

Julia

Answer
HI Julia,

The creditor may eventually get a judgment but you may have an opportunity to have the judgment overturned for the reason you gave. You have to file an appeal. This is not always easy but you may give it a try.

As for the bank account, credit is an consideration but not always. You may consider opening a money market checking with an over the counter brokerage. This is considered an investment not a regular checking account.

Each state has a statute of limitations on debt collection.Michigan is 6 years for most types of debt but if they get a judgment they may extend that period.

It is not likely they will serve you if you go to the courts to get your records. It is possible but not likely. You may be able to access the record on line or by phone if this is a concern. They must sue you in your state usually in your county or municipal court. If you move out of state they must transfer that judgment to that state in order to garnish wages or attach assets. This may cost more than they are willing to pay for collection depending on the size of the debt and their chances of collection. They usually wont do this unless they know where you work or know where your assets are. You may be safe for now but keep a low profile until you can start making enough money to pay your debts then contact them in writing to offer a payment plan or settlement.

My advice is to concentrate on making a living that will enable you to pay your bill and get re-established.

I wish you well.