topic Re: Negotiate without restarting SOL in Rebuilding Your Credit

Negotiate without restarting SOL

House2021 — Wed, 24 Feb 2021 18:20:31 GMT

I am trying to negotiate with creditors and send dispute letters regarding the amount owed. It is a time barred debt, the statute of limitations expired a year ago. How can I negotiate or dispute without acknowledging this is my debt? The. Last thing I want to do is get a lawsuit as a result of trying to get the amounts corrected or lowered. Also I want to send goodwill deletion letters on accounts I never paid, but I don't want to make them mad by denying it's mine.

Re: Negotiate without restarting SOL

simplegirl — Wed, 24 Feb 2021 18:56:50 GMT

What state do you live in? Because i know for texas once the SOL expires nothing can reset it. Also as far as contacting them you can state that you are not acknowledging the debt you just want it taken care of and removed from your reports.

Re: Negotiate without restarting SOL

vntrsc — Wed, 24 Feb 2021 19:47:59 GMT

@simplegirl wrote:
What state do you live in? Because i know for texas once the SOL expires nothing can reset it. Also as far as contacting them you can state that you are not acknowledging the debt you just want it taken care of and removed from your reports.

Just a note: A debt in TX can be revived after the SOL has expired. TX Civil Practice and Remedies Code.

Sec. 16.065. ACKNOWLEDGMENT OF CLAIM. An acknowledgment of the justness of a claim that appears to be barred by limitations is not admissible in evidence to defeat the law of limitations if made after the time that the claim is due unless the acknowledgment is in writing and is signed by the party to be charged.

Re: Negotiate without restarting SOL

simplegirl — Wed, 24 Feb 2021 20:39:01 GMT

@vntrsc wrote:
@simplegirl wrote:
What state do you live in? Because i know for texas once the SOL expires nothing can reset it. Also as far as contacting them you can state that you are not acknowledging the debt you just want it taken care of and removed from your reports.
Just a note: A debt in TX can be revived after the SOL has expired. TX Civil Practice and Remedies Code.

Sec. 16.065. ACKNOWLEDGMENT OF CLAIM. An acknowledgment of the justness of a claim that appears to be barred by limitations is not admissible in evidence to defeat the law of limitations if made after the time that the claim is due unless the acknowledgment is in writing and is signed by the party to be charged.

Oh well guess I googled wrong but when I did I got this:

Section 16.004 of the Texas Civil Practice and Remedies Code
The statute of limitations on debt in Texas is four years.
Section 392.007 of the Texas Finance Code
This section of the law, introduced in 2019, states that a payment on the debt (or any other activity) does not restart the clock on the statute of limitations. It also requires that debt buyers provide written notice to a consumer if the limitations period has expired

Thanks for letting me know.

Re: Negotiate without restarting SOL

House2021 — Wed, 24 Feb 2021 20:55:47 GMT

I'm in California. Do those statutes apply nationwide or just Texas?

Re: Negotiate without restarting SOL

vntrsc — Wed, 24 Feb 2021 21:09:29 GMT

@simplegirl

I used to have the same assumption about my state until I actually read the right statute. As far as I know, the only states in which a debt is extinguished once the SOL has passed are Mississippi and Wisconsin. I believe it's true also in North Carolina but only if the debt was purchased by a debt buyer. In that state, debt buyers aren't even supposed to attempt to collect a time-barred debt.

Re: Negotiate without restarting SOL

simplegirl — Wed, 24 Feb 2021 21:11:10 GMT

@House2021 wrote:
I'm in California. Do those statutes apply nationwide or just Texas?

No I'm California it can be reset so just let them know you are not acknowledging the debt you just want to take care of it & have it removed. Or that you have no knowledge of the debt but you would like to get it taken care of. Or something along those lines.

Re: Negotiate without restarting SOL

simplegirl — Wed, 24 Feb 2021 21:14:25 GMT

@vntrsc Yeah I know that a lot of this takes research but it looked like that was something done in 2019 and started September 1st of that year.

Re: Negotiate without restarting SOL

gdale6 — Wed, 24 Feb 2021 21:22:16 GMT

https://www.courts.ca.gov/9618.htm

Re: Negotiate without restarting SOL

CGeorge — Wed, 24 Feb 2021 21:32:12 GMT

If the SOL has expired, do NOTHING. They cannot sue you. And in a lot of states, if you pay even one penny on a loan that has passed the SOL - the clock starts all over again! Once the SOL has passed - the debt is done, and gone. That's why we have laws like that. The SOL protects the debtor - and gives him a fresh start. And in many cases, even if you acknowledge a debt in writing, the time clock can start all over again. And debt holders do not get mad - there is no emotion in this - it is all business, and laws.

Re: Negotiate without restarting SOL

CGeorge — Wed, 24 Feb 2021 21:34:15 GMT

If you pay even two cents against what you owe, the debt starts all over again - and the SOL disappears. Don't acknowledge the debt - and don't pay on it, unless you intend to pay the full balance all at once. Don't strip away the protections that you lawfully have.

Re: Negotiate without restarting SOL

simplegirl — Wed, 24 Feb 2021 21:37:28 GMT

@CGeorge wrote:
If you pay even two cents against what you owe, the debt starts all over again - and the SOL disappears. Don't acknowledge the debt - and don't pay on it, unless you intend to pay the full balance all at once. Don't strip away the protections that you lawfully have.

Or if your gonna to settle in full.

Re: Negotiate without restarting SOL

CGeorge — Wed, 24 Feb 2021 22:19:34 GMT

Yes, 'simplegirl' is right - the point is to pay in full or settle in full - with a guarantee that this will settle the the debt in full. Do NOT make a partial payment - of even a penny. Any partial payment will start the SOL timing all over again.

Re: Negotiate without restarting SOL

House2021 — Wed, 24 Feb 2021 22:21:29 GMT

Absolutely I would not commi to anything, I just want to be sure if I offer 40 percent and they say no, I dont open the door to be sued on a debt that had the statute of limitations expire a year ago.

Re: Negotiate without restarting SOL

House2021 — Wed, 24 Feb 2021 22:24:46 GMT

The only reason I'm even bothering with it rather than let it drop off is because I'm trying to clear up credit issues in order to better qualify for a rental property, it's quite competitive right now.

Re: Negotiate without restarting SOL

CGeorge — Thu, 25 Feb 2021 01:51:43 GMT

That is understandable. But, please, be very careful - you do not want the time re-set on any SOL.

Re: Negotiate without restarting SOL

gdale6 — Thu, 25 Feb 2021 17:45:53 GMT

If the parties agree to settle for less than full balance then that is the end of anything not paid. You may get a 1099-c for canceled debt if its more than $600 but no one can ever legally come after you for any amount that is not paid. As per the federal law an account settled for less than full balance must also be updated to a 0 balance. You would want to keep all paperwork on this going forward....

Re: Negotiate without restarting SOL

OmarGB9 — Thu, 25 Feb 2021 18:24:11 GMT

Just wanted to chime in, it is highly unlikely a creditor would entertain a GW deletion for an unpaid account. Even paid ones are often denied.