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Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

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Anonymous
Not applicable

Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

Hi All,

 

I really could use some insight. I was feeling good, heading for an interview when I received an summons in the mail from Calvary Portfolio from a furniture debt with Rooms To Go. This was a casualty from my divorce and till this day, I feel like I'm the only one dealing with the financial repercussions. The account balance was over $3,250 in the beginning but the balance has been knocked down to $1,200, which is the amount I'm being sued for. I did make monthly payments with a collection agency, and then they stopped and I wasn't sure why, apparently this debt has now been sold to Calvary. Now I'm in Virginia and I'm not exactly sure the SOL laws in this state, but I checked my credit card, and this debt is scheduled to fall off my credit report in March 2016. I feel that if I pay this, its only going to extend this even further. What options, if any, do I have at this point? If I have to pay, then fine, but I really don't want to restart the clock when I'm so close to having this removed once and for all. 

 

Thanks

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

5 years SOL for Virginia.

http://credit.about.com/od/statuteoflimitations/g/vasol.htm

 

Not sure if that applies to the state in which the debt originated or the state in which you currently reside.

Message 2 of 7
RobertEG
Legendary Contributor

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

There is no such thing as restarting the clock with respect to credit report exclusion of derogs.

Credit report exclusion peirods are set under FCRA 605(a) and (c), and have NOTHING WHATSOEVER to do with SOL for suing on debt.

 

Any monthly delinquency reported by the OC will become excluded no later than 7 years from its date of occurence.

Any charge-off reported by the OC will become excluded no later than 7 years plus 180 days from the date of first delinquency (DOFD) on the OC accunt.

Any collection, regardless of when reported or by whom,, also becomes excluded no later than 7 years plus 180 days from the sane DOFD,and cannot be "reset" based on any payment or non-payment of the debt, or any other action or reportting of the debt collector.

 

As for their legal action, you may or may not have an issue with expiration of SOL, and should consult an attorney.

If still within SOL and they prevail in court and obtain a judgment, then it will have its own, separate exclusion date, which will be 7 years from the date of entry of the judgment once you satisfy the judgment.

Message 3 of 7
Anonymous
Not applicable

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

Thanks for your reply..but I'm a bit confused. So they can still sue, although this debt will fall off in March, which is 5 months from now? It was a warrant in debt I received in VA.

Message 4 of 7
Anonymous
Not applicable

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009

They cannot sue once the SOL is reached. The item can no longer be on your credit report after 7 or 7.5 years, depending on the nature of the item.

Message 5 of 7
redbeard
Frequent Contributor

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009


@Anonymous wrote:

Thanks for your reply..but I'm a bit confused. So they can still sue, although this debt will fall off in March, which is 5 months from now? It was a warrant in debt I received in VA.


Yes, they can probably sue.  You would have to figure out which state laws apply, whether it is where the contract originated or where you live now or where the lawsuit is filed or where the original sales contract says applies.  Lets go with the 5 years you mentioned for now.

 

The SOL would be 5 years from the last payment leading into default PLUS any months you have paid (called tolling).  This seems to vary a lot by each state, with some states claiming payment totally resets the SOL, a lot saying a payment arrangement resets the SOL, etc.  Contact an attorney for clarification.  In this case, lets say you paid 18 payments to the creditor with your payment plan you had.  So now, you are 6 years into the SOL minus the 18 months you paid, or 4 1/2 years.  Of course, I don't know the exact months, this is only for illustration.  If you resigned a payment arrangement, then that would have reset the SOL or even perhaps completely removed your ability to claim it (fine print stuff they didn't let you read).

 

I think you have 2 options:

- Pay the bill.  Offer a settlement with a deletion.  They may not go for it, but hey, its worth a try.

or

- Contact an attorney and go for the SOL defense.  Don't count on this without some help though.  This will likely cost you more than the first option, but it can be more rewarding personally.  Plus, if you put a reasonable defence, they may just go after your ex rather than going after you.  Even more personal satisfaction.  No guarantees you will get anywhere with this though.

 

At this point, they have spent money and time to sue you.  You can't ignore it at this point.  You have to decide your course of action and move forward.  I'm a wimp and would just settle it, but it would be worth a consultation with an attorney first if you can.

 

Dan

 

Just trying to get my scores to rise from the dead......

Wait.... I think I just heard a heartbeat!

Message 6 of 7
Anonymous
Not applicable

Re: Received Legit Summons from Calvary Portfolio for an account that was charged off in 2009


@Anonymous wrote:

Hi All,

 

I really could use some insight. I was feeling good, heading for an interview when I received an summons in the mail from Calvary Portfolio from a furniture debt with Rooms To Go. This was a casualty from my divorce and till this day, I feel like I'm the only one dealing with the financial repercussions. The account balance was over $3,250 in the beginning but the balance has been knocked down to $1,200, which is the amount I'm being sued for. I did make monthly payments with a collection agency, and then they stopped and I wasn't sure why, apparently this debt has now been sold to Calvary. Now I'm in Virginia and I'm not exactly sure the SOL laws in this state, but I checked my credit card, and this debt is scheduled to fall off my credit report in March 2016. I feel that if I pay this, its only going to extend this even further. What options, if any, do I have at this point? If I have to pay, then fine, but I really don't want to restart the clock when I'm so close to having this removed once and for all. 

 

Thanks


First off - Paying it will NOT extend the reporting.

 

Secondly - do NOT rely on an SOL defense here. The payments stopping would have established a new SOL, which would be the basis of the current lawsuit, seeing as it is only for the unpaid balance and not the full debt. However, as others have pointed out, that is completely separate from the reporting period, which CANNOT be reset. BUT - if you LET them get a judgment, then that judgement will be a major derog that will sit on your reports for 7 years from the time that it is FILED. A judgement does NOT run from DoFD.

It is in your best interest to get it settled BEFORE the court date and avoid a judgement.

Message 7 of 7
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