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Creditors and Bankruptcy/creditors told me i need to get Representation
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Question
i have an old credit card for a 500 limit. In 2006 i had just gotting out of highschool .I didn't have a job and couldn't pay so i owe 1,200 in debt i got a call today from a creditor saying if i wanted to make a payment and i told him i could'nt at this time then he told me i would need to get representation because they will file a lawsuit against me to collect the debt! i was just wanting to know what should i do ?
The first thing you should do is verify if the debt is still within the statute of limitations. you can check this through a simple internet search for your state.
You can get a copy of your credit report to see how it is reporting. A free one is available once a year at www.freecreditreport.com. The goal here is to find an error in the reporting. Then send dispute letters directly to the credit bureaus. if they verify incorrect information, you may have a violation of the Fair Debt Collection Practices Act (FDCPA). This violation then becomes the basis to offset/forgive your debt. This is a long and complicated process but like I said, the goal is to send dispute after dispute, get them reporting or verifying incorrect information.
Secondly, you should send a certified letter directly to the collection agency asking for validation of the debt under the FDCPA. You can also put in the letter that they contact you only in writing in the future. This should stop the calls.
Your other less attractive options are to settle or make payment arrangements or to file bankruptcy when they sue.
Good luck,
Regan
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Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA - University of Minnesota
Past/Present Clients
(private)
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