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Advice needed for large old debt

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Bankrupt2019
Established Contributor

Re: Advice needed for large old debt


@RobertEG wrote:

Is she willing to bring civil action in small claims court asserting that the classes were properlly cancelled, and thus she has no debt?


 

i was just going to ask that!









Message 11 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt

She would be willing to take them to small claims, but our only evidence is her three emails to each professor telling them she was dropping the classes and because she was called for jury duty that summer. When I was in school they hadn't switched yet to electronic registrations so I did everything in paper.  Seems like a good idea now.

 

After more conversations with both parties:  she'd decided that either they take the offer she gave them of $75.00 every two weeks or leave it.  She is not as loving as me.  She told the dude the SOL is going to run out soon and she won't start agreeing to payments that she knows she will default on.  As she told him and me... so she agrees to $400 a month and then her car needs a major repair or a dog need surgery.  She is screwed and she is tired of being screwed.  I truly think her car breaking down a year ago really changed her mentailty about paying her bills and keeping good credit because my other sister and I didn't step in to save her as we always did.  We let her fall.  It was the only way to teach her.  I have two brothers I have had to do that with also.  We would save them and then they'd repeate whatever dumb thing got them into trouble.... maxing out credit cards, not paying bills you owe.....I've had to go to my husband and ask him to pull from savings more than a few times to help family and I am getting tired of it.  So, Sarah and I finally realized they would never stop unless we cut them all off.

 

So, she thinks that since her SOL is close they can either agree to get something and not report it or report it, get nothing, and in two years she will send written notice to the bureas that it is older than 7.5 years and to remove it.  We are suppose to hear back today if they like her deal or not.  We will see. 


 




Message 12 of 19
Bankrupt2019
Established Contributor

Re: Advice needed for large old debt

You forgot another option that could happen. With the alleged debt still being under SOL they could sue her for the balance owed.








Message 13 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt


@Bankrupt2019 wrote:
You forgot another option that could happen. With the alleged debt still being under SOL they could sue her for the balance owed.

Exactly. And Ohio's SOL for contract debt is 8 years.

Message 14 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt

I went through something similar with CWRU. I would take the printed out emails from that time period, take them to someone high up at the school. If they won't resolve, get an attorney. 

 

Schools screw up their records regularly. Don't deal with the collection agency at all. The fact that you have anything, and they have nothing, is more than likely enough to get it resolved. 

Message 15 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt

Is this actually a contract since they have nothing "signed"? 

 

I have thought about what happens if they sue.  She's kind of judgement proof right now.  She isn't so far along that she wouldn't go and do a chapter 7.  She's paying off four large debts and with this one added on top.... she'd do it in a heartbeat.  That threat is what made one creditor work with her for a payment plan because they wanted all now.  She said she'd do a chapter 7 and they'd get nothing.  When they retorted, "how she'd consider a chapter 7 instead of paying," she responded with: "I am already screwed so either help or get nothing."

 

We are planning on taking the emails into the someone else next week.  We tried the registar's office but it got us no where.

 

Oh and Hanales:  Congrats on the Amex!

Message 16 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt


@Anonymous wrote:

Is this actually a contract since they have nothing "signed"? 

 

I have thought about what happens if they sue.  She's kind of judgement proof right now.  She isn't so far along that she wouldn't go and do a chapter 7.  She's paying off four large debts and with this one added on top.... she'd do it in a heartbeat.  That threat is what made one creditor work with her for a payment plan because they wanted all now.  She said she'd do a chapter 7 and they'd get nothing.  When they retorted, "how she'd consider a chapter 7 instead of paying," she responded with: "I am already screwed so either help or get nothing."

 

We are planning on taking the emails into the someone else next week.  We tried the registar's office but it got us no where.

 

Oh and Hanales:  Congrats on the Amex!


Thats exactly how you have to be with those kinds of collectors. She knows how to negotiate!

Message 17 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt

So... it is a Mexician stand-off.  She won't budge and neither will they.  She has stopped communicating with them now.  They wante th $400 and nothing less.  She simply can't afford it.  So, she said to me that she's is just going to work on paying off the 5 bad ones she has left except for one that from a vet's office that killed her puppy.   She swears she will never pay that one and in fact, is trying to see if they will take it off as she'd told them she'd report them for malpractice if they don't. 

 

If this one goes on her credit record, it is my understanding that it stays on 7.5 years from when it was first late.  So, that would be August, 2011.  They are saying it was summer classes from June-july of 2011.  So this summer would be 5 years.  She has two items that will fall of that she is paying by summer of 2016.  1 item next year.  The final two items are due to come off summer 2019.  They are largest and she is paying on those now also.  If she gets them paid off early, the companies said they will delete the items.  This is partly why there isn't a lot of wiggle room.  Paying bills, these collections, and putting away in her savings doen't leave a ton.  Even if she'd pull back what she'd put into savings... she still couldn't get to the 400 they want per month.  So, worse case they way I understand it.... this goes on her credit reports in roughly two more weeks and stays there until it ages off in winter of 2018.  Am I understanding this correctly?  She said once she gets the other items paid she is going to save up to make them an offer, but won't make a payment plan with them so she doesn't risk re-setting a clock.  Is my thought process correct?

Message 18 of 19
Anonymous
Not applicable

Re: Advice needed for large old debt

It sounds like it - that college debt should be there until late 2018 early 2019 (7 years + 180 days)

 

I think save up and offer a lump sum later is a good plan since it's at a stand off.

 

Also - keep trying to work your way up to someone at the college with those e-mails.....maybe someone will listen in the meantime.

 

Message 19 of 19
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