Settle Old Debt? - Full Factual Report?

[titanofold]

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@NeverBackDown wrote:

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@titanofold wrote:

The problem he ran into probably was because the CO wasn't actually paid or settled, not merely the fact that he had one. Even though the TL is old and fallen of the CRs, doesn't mean the debt doesn't need to be taken care of.

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True, the CO wasn't paid or settled in my friend's case & not in my case either. 

I want to take care of it, but simply cannot afford the total amounts due (insanely high due to late fees, etc.).  Let's say I knew that a lender would require the CO's to be paid prior to moving forward with the mortgage, would settling these CO's for less than originally owed count as being ''paid''?

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Yes, because then the bank wouldn't have to worry about you being sued into financial ruin...because of a CO anyway.

[Libra85]

How can you be sued for a CO if the SOL have passed? In my state SOL are 3 years.

[NeverBackDown]

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@Libra85 wrote:

How can you be sued for a CO if the SOL have passed? In my state SOL are 3 years.

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True.  The SOL in my state is 4 years. 

[Shogun]

This would be a zombie debt.  Now there's a bit of a dilema here.  I "almost" always side on the paying/settlling of debts, even in this case.  But this is my choice.  I will give you an example.

I had a medical bill, which I paid at a lessened amount that was agreed upon, and with nothing in writing.  Down the line, I had a CA pop up on the unpaid amount.  I went through all the steps, calls, letters, disputes, etc.  But they just validated everything.  It had passed the SOL and eventually was removed once it passed the CRTP.  By this time it had turned to a ridiculous amount.  

Would I pay it?  NOPE!  Now if I went to a lender and they said I had to pay it, would I?  NOPE!  I'd take my business somewhere else.  I've had no problem with getting a loan in the excess of 150k and a job at over 75K.  

So like I said, there's extenuating circumstances and a YMMV type of situation for everything.

[titanofold]

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@NeverBackDown wrote:

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@Libra85 wrote:

How can you be sued for a CO if the SOL have passed? In my state SOL are 3 years.

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True.  The SOL in my state is 4 years. 

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There's one of three places the suit can be filed: Your state, the CAs state, or the OCs state. So, just because you're past the SOL according to the state you're in doesn't necessarily mean you're out of the woods yet.

Further, some states have SOLs of 15 years. I didn't ask which state, but I wasn't quite assuming anything either. Potentially, the suit can still be filed even though it's past the SOL. All you have to do is claim SOL as your defence, but the suit is inconvenient, to say the least.

[Shogun]

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@titanofold wrote:

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@NeverBackDown wrote:

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@Libra85 wrote:

How can you be sued for a CO if the SOL have passed? In my state SOL are 3 years.

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True.  The SOL in my state is 4 years. 

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There's one of three places the suit can be filed: Your state, the CAs state, or the OCs state. So, just because you're past the SOL according to the state you're in doesn't necessarily mean you're out of the woods yet.

Further, some states have SOLs of 15 years. I didn't ask which state, but I wasn't quite assuming anything either. Potentially, the suit can still be filed even though it's past the SOL. All you have to do is claim SOL as your defence, but the suit is inconvenient, to say the least.

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Technically this is not true.  If that were the case, then all the CAs would set up shop in Kentucky or one of the states that have elongated SOLs, but this is not the case.  Now if you were in another state and moved, then I believe that to be an option, albeit not a popular one.  Most often they are brought in the state in which you reside.

[NeverBackDown]

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@Shogun wrote:

This would be a zombie debt.  Now there's a bit of a dilema here.  I "almost" always side on the paying/settlling of debts, even in this case.  But this is my choice.  I will give you an example.

I had a medical bill, which I paid at a lessened amount that was agreed upon, and with nothing in writing.  Down the line, I had a CA pop up on the unpaid amount.  I went through all the steps, calls, letters, disputes, etc.  But they just validated everything.  It had passed the SOL and eventually was removed once it passed the CRTP.  By this time it had turned to a ridiculous amount.  

Would I pay it?  NOPE!  Now if I went to a lender and they said I had to pay it, would I?  NOPE!  I'd take my business somewhere else.  I've had no problem with getting a loan in the excess of 150k and a job at over 75K.  

So like I said, there's extenuating circumstances and a YMMV type of situation for everything.

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Thanks for the information, Shogun.  You seem confident and knowledgeable. 

A phone call to the CA (or original creditor) wouldn't restart the SOL, would it?  I was thinking of calling them to feel them out for a settlement, then if they seem willing, I'd follow up with a settlement offer letter.  Would this be a good idea?  What could I put in the letter to cover myself?  I've reviewed many templates and PFD-style letters, but haven't found anything similar to my situation...

Also, thanks for the insight on SOL.  I moved to a different state a couple years ago, but I checked and both states' SOLs are 4 years.

[RobertEG]

Bottom line is that the presence of an unpaid, delinquent debt says that, in the past, you did not meet your obligation to repay your obligated debt.

The credtior took a loss.

It's a relevant risk assesment factor.

[Shogun]

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@RobertEG wrote:

Bottom line is that the presence of an unpaid, delinquent debt says that, in the past, you did not meet your obligation to repay your obligated debt.

The credtior took a loss.

It's a relevant risk assesment factor.

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I totally agree with RobertEG on this one, and that's why I said I almost always side on paying/settling.  But what about the 2 states where they literally can't accept payment after the SOL has expired.  That's why I say it's not always a cut and dry situation.  Also, there's a time factor involved.  Are you going to tell me that the actions taken at age 18 are going to be the same as when they are say, 35?  I know it isn't in my case.