@Anonymous wrote:
Well, as a result of the mess with California Franchise Tax Board last month, my $500 payment to barclays got reversed a couple weeks back. So now California is paid, and I have my US Bank account back, but my Barclays card went overlimit by a couple hundred bucks. Statement balance on 8/3 was $2137 (limit is $1930) Ugh! On top of that my car is broken. Bad gear noise emanating from the transfer case. Its still driveable but certainly not reliable in any sense of the word (fortunately I have the use of a loaner). To top it all off, an old $9k medical bill from 2010 for the wife just rose up in an ugly way by way of a summons filed just a few days before SOL would have expired. I called them to make arrangements for a payment plan... Don't know for sure if they are going to back off on the suit though. I told them flat out that if they come after my paychecks via garnishment I will have no choice but to file for BK.
August is not turning out to be a good month....
Do you reside in California? Or some other state? Have you move in the interim? It's possible the 6 year SOL may not be applicable.
Furthermore, the legal SOL often won't be the same as what's shown on credit reports. If the creditor is basing the time tolling solely on CRA data, the debt was likely past SOL already. Regardless, if it appears the SOL is very close / past based on old past-due bills, etc you have in your possession, consider responding to the summons indicating the debt is time barred. Then the ball is in their court to document otherwise. They may choose to drop the matter. Worth a try with little to no downside risk.
BK will be far more damaging than a public record that can likely be avoided (if paid prior to judgement) or later removed / vacated. Also, there are proposed changes in how CRAs compile and utilize PR data, which could be very advantageous for debtors in the future.
Wage garnishment is limited in most jurisdictions. However, with an important caveat. Don't have your paycheck deposited into a bank account. Get the physical check and cash at a Wal-Mart (relatively inexpensive and simple) or even easier, get a Wal-Mart pre-paid card on-line (get the black one; costs around $4 - physical card is mailed in about a week) and have your pay deposited onto that. Not 100% ironclad, but greatly reduces the odds of additional garnishment beyond the statutory limit for earned wages.
KayKay65 is spot on about the Firestone card. Alternatively, depending on the repair shop you use / have nearby, consider a Goodyear card issued by Citibank. Also, very easy to get. Low 600s with even high util (heck, I think I was around 50% total at the time for both) will often get approved. $1K or so SL minimum is typical even for limited credit profiles with baddies. Both Firestone and Goodyear have 6-12 months 0% deferred interest financing.
Hope this helps.
