What's the best way to deal with a collections within the SoL?

[J_S]

Hey all.

I have a recent collections account. I can't pif but will be able to within a month or two. It's within the SoL by several years. What's the best way to deal with it?

[Shogun]

Wait until you have the money then send a PFD.

[J_S]

Even with it within the SoL? What keeps them from suing me? (Or am I being overly paranoid?)

[Anonymous]

I'm sorry, new here... What is SoL? Other than the common usage lol?

[RobertEG]

How strenuously is the debt collector pursuing the collection?

They always have the option of bringing legal action if it is still within SOL, so you are not in control should they be at that point.

However, even if they sue and you can pay in a couple of months, you could avoid a judgement by settling after they file.  So that is not a huge concern, just more of an annoyance that puts you under a real time frame to pay.

If it is recent enough such that a DV would be timely (i.e., they never sent dunning notice, or if they did, you are still within 30 days of its receipt), you might buy a bit of time by sending a DV, thus invoking a cease collection bar.

When you have the $$ to PIF, is your plan to first attempt a PFD, or are you just going to pay to satisfy the debt?

[J_S]

No worries... Statute of limitations - the period of time a creditor can sue.

[Shogun]

+1 RobertEG.  Are they threatening now?  If so, then you could set up payments.  If not, then don't poke the bear until you're ready.  Just because it's still within the SOL doesn't mean they're automatically suing you. 

[J_S]

They aren't actually but I may be under their radar. I think I'm actually effectively "judgement proof" in that my income can't be garnished (I'm on SSDI I don't want to tempt the fates in case I'm wrong...) But anywho... they haven't even made contact. I just know about it by my credit report.

I haven't decided whether or not I want to just pay to satisfy the debt or attempt to PFD. A part of me wants to satisfy the debt and another part wants the ding removed. I'm not in any particular hurry to get things cleaned up but 7 years is a long time to wait.

[Shogun]

Oh, then I wouldn't worry.  Just save up the money and when ready, send a PFD if you just want to get rid of it.