What are my options if I owe on an old credit card bill? 19 Answers as of July 15, 2011

i owe an old credit card from about 4.5 years that had a $500 limit. they are now going to sue me for$7,500. the only option they gave me was to pay $334 down and $235 a month for ten months. I cant afford either if i want to pay rent. any suggestions would be greatly apperciated

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Eric J. Benzer, Attorney at Law
Eric J. Benzer, Attorney at Law | Eric Benzer
Statute of Limitations may apply.
Answer Applies to: Maryland
Replied: 7/15/2011
Benson Law Firm
Benson Law Firm | David Benson
If you have more than $10K in credit card debt, personal loans and medical bills, you might want to consider bankruptcy.
Answer Applies to: Ohio
Replied: 7/15/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
In Mississippi there is a three year statute of limitation applicable to this type of debt. The time would run from the last charge you made on the card. The $500 limit is irrelevant to the amount you may be liable for under the contract you entered int for the credit card. I would not advise paying into the installment plan they have proposed. It sounds like a third party bill collector's proposal. If you try to settle with them in any way, get their terms in writing. You are most likey best advised to file a Ch 7 bankruptcy.
Answer Applies to: Mississippi
Replied: 7/15/2011
Apple Law Firm PLLC
Apple Law Firm PLLC | David Goldman
You should talk with a lawyer about your options including the possibility of filing bankruptcy
Answer Applies to: Florida
Replied: 7/15/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
When was the last time you paid it? In WA, the statute of limitations is 3yrs from the date of last pmt. If you can't afford the pmt plan, they will eventually proceed w/ a lawsuit. You should hire a debt resolution company or an attorney see if they can help or at least stall the process while you get your ducks in order. Eventually, if you cannot recover, consider BK
Answer Applies to: Washington
Replied: 7/15/2011
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
    CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
    they have little time left to sue. let them sue.
    Answer Applies to: California
    Replied: 7/15/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That sounds outrageous. See a lawyer about this. Keep looking for a lawyer until you find one who handles consumer cases.
    Answer Applies to: California
    Replied: 7/15/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    If you cannot reach an agreement to pay the debt, the creditor will sue you and get a judgment. Once the creditor has a judgment, they can try to garnish your wages or your bank accounts. At that point, you may need to look into filing for bankruptcy protection if you cannot make arrangements to pay the debt.
    Answer Applies to: Colorado
    Replied: 7/14/2011
    Law Offices of John J. Ferry, Jr.
    Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
    If it has been more than four years since you last paid anything on this account or made any purchases, you can raise the 4 year statute of limitations as a defense to the lawsuit.
    Answer Applies to: Pennsylvania
    Replied: 7/14/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    First there is not much they can really do to you to collect this. However, if it has been over 4 years since you paid on the card the suit is barred by the statute of limitations. If they sue hire a lawyer to file an answer and plead the statute of limitations as a defense.
    Answer Applies to: Texas
    Replied: 7/14/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    You can file for bankruptcy or try and settle your debt with the creditor for less than you owe.
    Answer Applies to: Washington
    Replied: 7/14/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It is almost always a very bad idea to talk to collectors. Talk to a lawyer instead. You may be eligible to do other things, such as wiping the debt out in bankruptcy.
    Answer Applies to: Georgia
    Replied: 7/14/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    You can eliminate the debtin a Chapter 7 bankruptcy and continuepaying your necessities.
    Answer Applies to: California
    Replied: 7/14/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A debt that is 4.5 years old may be noncollectable due to the statute of limitations. If the debt was in writing, such as a credit card the statute in California is four years since the breach.
    Answer Applies to: California
    Replied: 7/14/2011
    Financial Relief Law Center
    Financial Relief Law Center | Mark Alonso
    Consider using the CA statute of limitations on debt as a defense. In CA, a credit card or open ended account has 4 years from the date of the LAST PAYMENT to collect on the account. This may be tricky, because if you haven't made a payment in 3 years, but start trying to resolve the matter by making a good faith payment, then that will have the effect of re-setting the statute of limitations. You would have to take a look at your records to use this as a defense. Creditors know this rule, but may still pursue an lawsuit against you anyway, leaving it up to you to assert that the statute of limitations has expired. If this does not work, or you find that you reset the statute of limitations by making a payment, your other options include bankruptcy, trying to offer the creditor a lump sum payment for a % of the full balance to settle it once and for all, or doing nothing may be a good option for you as well. Doing nothing is an option if you are a judgment proof individual, meaning that you have no regular wages for them to garnish and are on a fixed income, and don't own any property that the creditor would want to place a lien against.
    Answer Applies to: California
    Replied: 7/14/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    You could go bankrupt, but if that is all the debt you have, I'd see what they are willing to negotiate it down to and try to settle on something you can pay.
    Answer Applies to: Michigan
    Replied: 7/14/2011
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