Jump to content

The wait them out strategy from Florida


Mike Clark
 Share

Recommended Posts

Hi everyone first post.

 

Like many here, I'm working to rebuild my life, and doing the best to my knowledge.

 

Here's my situation and strategy. I welcome advice and criticism of things I may have over looked.

 

In November 2007 I lost everything.. Quick Claimed my house to the EX in early 2008. I stopped paying on about 5 credit cards except for 1 Platinum VISA that I have had  maxed out at $17000 this entire time. .This $17000 Card has cost me about $1500 a year in finance charges the last 5 years.. 7500 down the toilet I know. From my understanding,the credit card companies have 5 years (or 5.5 years) to sue you in Florida..  http://www.creditcards.com/credit-card-news/credit-card-state-statute-limitations-1282.php

 

I think it's 5, becasue I have received a letter from a collection agency stating that while they can't sue me, they will conitue to report. Note: 5.5 years from last payment would be May 2013..

 

I recently checked my credit report when applying for a mortgage that I was denied, and it shows a lot of charge offs from original creditors, and the active collection agencies after me. Most show deliquency origination date in 2008, but the Collection accounts (namely Midland) show recent dates in 2012 (but with a notation of the original date in 2008). They keep upping the date. My credit scores were 630,630,and 524. I also have 2 paid off from Mortgages in 2008(from the quick claim) ,and all the good credit from before 11-2007. The last payment I made on any deliquent account was 11-2007, and is about $50k in bad debt.

 

 

I drive an 18 wheeler.. Live in the truck the last 1.5 years, put all my stuff in storage,  my last known address is my ex fiancee,and I receive all my mail at a Pakmail. I have have an app that blocks unknown and blacklisted numbers, and sends them to voicmail. I don't answer calls from number I don't recognize.. If I do, I say, " Bob Here", and they hang up. Or I Google the number. 

 

I make good money,and live cheap on the road. Now that I was denied the Mortgage, I'm really leaning towards paying the $17000 card now. I figure that good credit would show till April 2020, long past the bad that  should come off sometime in 2015.  I could save 40k over the next 2 years when the bad debt will be 7 years old and off my report right? Or will Midland keep upping the date?

 

Then when I apply in 2015, I would only have good credit of a $17000 paid off debt on a platinum Visa I've had since the 90's. Or will Midland keep upping the date?

 

I've never claimed Bankruptcy (some say I should have back in 2007), but I have a Contractors licence I may reactivate one day.I'm worried about the ability to get a bond. I have no Judgements or pending lawsuits.

 

So what do you all think of my strategy?

 

My main worry is that the Collectors could keep the bad stuff on my credit past 7 years...

 

Thanks for reading.

 

 

 

 

 

 

 

 

 

Link to comment
Share on other sites

With all those other negatives on your reports, paying the $17k card won't help a bit.  In fact, because of the CC companies "universal default" rules I would bet that card is really closed or at the very least, you're paying 25% interest on it.  Pretty much a waste of money.

 

chances are, all the other debts have been sold so you're really dealing with junk debt buyers rather than CAs.  You can wait anothher two years for the tradelines to fall off your credit reports, which might get you a mortgage...but...you're bound to be getting 1099c's from somebody soon...so you'll have taxes to deal with.

 

Advice?  I don't really have any....you probably should have filed BK 5 years ago....

Link to comment
Share on other sites

I would just wait it out.  The collections are tied to the original creditor, so you don't have to worry about Midland updating.  They can only do so for so long.  

 

Once everything falls off your credit report, you are good to go for a mortgage.  

Link to comment
Share on other sites

Oh that's great NEWS! So 2 years to go! I can do that!

 

The $17000 Visa Platinum Card is current, in good standing, and has never even been late since I got it in the 90's. I pay about $120 a month in finance charges which works out to $1440 a year, about 8%  .. It's with my Credit Union, who never upped my rate or changed my terms, even though every month I have only pay the minimum due of $343, then transfer $224 back to checking to max it back to $17000. When I applied for the Mortgage last month, it was with this Credit Union I have the card with. Now I do wonder if I pay this off next month, that they may lower my credit limit, or cancel it because they now see all the other debt..

 

I've always intended to pay off that card when I had the means.  Living in the 18 wheeler has finally put me in that position.

 Hopefully my years of ontime payment history with them,and all those direct deposits from work will see them not cancel on me.

Link to comment
Share on other sites

Another problem is....your other creditors are watching your credit reports.  Paying off thhe $17k is going to get theeir attention.  They may still sue...and if you don't show up, and raise the SOL as an affirmative defense, or the judge doesn't agree, they may get a judgement against you.

 

Also, being a truck driver...what do you have for a permanent address?  Its possible that if you're out of state a lot, and don't really qualify for Florida residency, you might have "tolled" the FL SOL.  I'm not sure FL has such a provision, but you need to look into that.....

  • Like 1
Link to comment
Share on other sites

As far as residency goes, you are considered the resident of some state, even if your job requires travel, and hence are under those laws. Otherwise, someone in the OPs situation would never have an SOL because they would never be a resident of any state. There are rules for that. I know this because my father was a merchant marine and was able to declare Nevada his home state even though he spent long enough there to renew his PO box and gamble away his paychecks.

You should have done a BK in 2007 but because you did not and your creditors did not sue you, you are probably in the clear on that. If they do try to sue you, you can raise the SOL defense (in fact, because you are an OTR driver, you might have to stop in the courthouse to be served the lawsuit and file the answer and raise the defense.

As for your report, it is true that baddies are suppose to clear out after 7.5 years but expect to spend a year clearing out those who think they are above the law. You may also have to sue some of them to get their attention so I would say wait about 3 years for that.

As for the current credit card, come up with a 2 - 3 year payoff where it gets paid off at the same time the baddies come off. If you have $17k right now, I would suggest putting that aside as that will probably cover the taxes you will get once the 1099-Cs start to fly (33% of $50k is about $17k). No sense doing all this only to owe the IRS and be at square 1.

In any case, if you are an OTR driver, why do you want to buy a house? You might be better off with a condo or something like that and in most cases, you could probably save up enough to buy it with cash and never have to deal with a mortgage. Then all this will not matter.

 

  • Like 1
Link to comment
Share on other sites

I  still have have my EX Fiancee's place in a gated community as my Physical Address, but PAK Mail (like Mailboxes ect) as my mailing address. That will change when I renew my drivers license in 2014 when I put a friend as my new Physical Address. Yes I'm an OTR truck Driver, and it is probably impossible to find me to serve me. Not that they even tried 5.5 years into it. It's weird that this Midland company only started calling and sending me endless letters after 4 years into it..

 

If they file a lawsuit past the SOL without serving me in person,  how would I even know they filed it to be able to fight it? I guess that would be illegal, and they would hope I wouldn't show so they could win by default.

Since they send me letters, I should get notification. So far no judgements knock on wood.

 

I didn't know that by paying off the $17000, I would raise alerts. That sucks. I guess I could just keep saving, havingmy dad hold the money, and waiting until all the bad is off in a couple years, then pay off the VISA..That will cost me $2880 over the next 2 years in finance charges, and put me 7.5 years past the last payment on the deliquent 50k debt.

Link to comment
Share on other sites

As far as buying a house, I was going to put 20k down on a 100k place. House payment including taxes would have been $605 a month,and I was going to rent out a room for $450.. If I still really wanted to do this, my dad would cosign,and he has excellent credit and assets. I just have had 2nd thoughts. After I was denied, I had a change of heart.  I'm not so sure I want to live in that area anyways..

 

So I'll keep saving, and giving it to my dad to hold..

Link to comment
Share on other sites

As long as you are hard to find they will have extreme difficulty serving you.

 

Paying off one of these past bills will do nothing to help you buy a home because the bank will want them ALL paid off. Since you are outside the SOL in your State for suit you only need worry about the SOL for credit reporting, which is 7.5 years from the beginning of delinquency or 7 years from charge off (the two should be about the same).

 

My take - the housing market isn't going to come back very strong for a  while - there are still a lot of foreclosures in the pipeline that will continue to depress values, so time is your friend.

 

Of course, if you really want to  make it hard to sue you, I will let you use my address:

 

312  Xianyin Beilu #1-509

Nanjing, Jiangsu Province

Peoples Republic of China

  • Like 1
Link to comment
Share on other sites

You can't get harder to serve than in China... Too funny

The biggest reason I wanted to pay off the $17000 was to save the $1440 in finance charges a year, and not get a $343 Visa bill every month. The good credit wouldn't be till the bad is off in 2 years.  Part of me is thinking of hiring Lexington,and having them challenge everything on my Credit Reports.  Just to see if I can get some stuff removed with a premptive strike. They charge like $100 a month.

Link to comment
Share on other sites

You can't get harder to serve than in China... Too funny

The biggest reason I wanted to pay off the $17000 was to save the $1440 in finance charges a year, and not get a $343 Visa bill every month. The good credit wouldn't be till the bad is off in 2 years.  Part of me is thinking of hiring Lexington,and having them challenge everything on my Credit Reports.  Just to see if I can get some stuff removed with a premptive strike. They charge like $100 a month.

You can do it yourself for free.

  • Like 1
Link to comment
Share on other sites

If they file a lawsuit past the SOL without serving me in person,  how would I even know they filed it to be able to fight it? I guess that would be illegal, and they would hope I wouldn't show so they could win by default.

Since they send me letters, I should get notification. So far no judgements knock on wood.

.

No, actually, many JDBs "serve" you with a summons by throwing it in the sewer in front of your house, and then when you don't show uo in court, they get a judgement by default.  Completely legal.   You don't find out about it untuil they try ti grab your bank accounts.

  • Like 1
Link to comment
Share on other sites

First off, don't bother to hire someone to clean your credit report. You can do it yourself for free. Besides, they will probably rip you off.

As for court cases, find your court website, learn to use it, and watch for a case in your name once/week. It will show the attorney for the other side and you can contact them for service. You could even file an answer without being served (since this is a SOL case anyways, I would not worry about service). The court will work around your schedule so that you can do hearings when you are in town.

As for a house, If you are not sure where you want to settle then don't bother buying. Just save your money and then settle once you know where and when you want to come off of the road. A tenant that knows you are not in town will destroy the place and take advantage of you.

As for the $17000 current credit card, if you pay it off over 2 years, you will still have a balance, you credit report will get better because the debt avail/debt used ratio will get better and the finance charges will be less because as the debt goes down, so does the interest. Based on my calculations, about $650/mo will do the trick. Enough to pay it off over timebut not enough to raise an alarm, Normally I would pay it off at once but in your case, time is a factor.

When they do call you, get their address and send them a refusal to pay letter. It is the same as a C&D and it could get you some violations when you are in town to file your own court case.

As for your savings, you have 2 choices that are better than dad. One would be to put the money into a Money Market Mutual Fund ran by a mutual fund company like Vanguard or Fidelity. I know about the recent history of them but the 2 companies I listed are safe enough that it would be almost the same as an FDIC bank. If you are to scared to do that, then if your route is relatively consistent, find a small community bank on the route and put your savings there. If you are sued, they will never find it short of financial disclosure (and if you are coming into town before the disclosure through the community, you can close the account, hand the money to daddy, and then reopen one at another bank after the disclosure is done).

In your situation, I would not worry about getting a house right now and as long as your money is in a place where your creditors will never find it, you should have no worries, even if you are sued. I say wait it out and slowly pay off the $17000 (over 2 years) rather than right away. Don't worry about the finance charges. Just think of it as a fee for the bank you have a good relationship with to keep those you do not have a good relationship with away.

  • Like 1
Link to comment
Share on other sites

First off, I want to thank everyone here for helping me. It's good to know what to do, but it is overwhelming. My stomach is turning writing this, because I'm afraid I will dot my Ts and cross my eyes.

 

I'm going to send out $650 a month starting with my May payment, and not touch the $17000 in the savings account. I might need that for a lawyer if this gets ugly.

 

The answering the phone part scares me, because they probably have recordings of me answering "Bob here", and saying" they have the wrong #". Could I respond to their letters  with the refusal to pay letter instead of answering the phone?

 

I'm definately going to get familiar with my court. I will check the County Court in Florida where I reside today.

 

Part of sending the refusal to pay letter that scares me, is that I don't want to acknowledge the debt by claiming SOL and noting DOLA.  I wonder if I should send the letters to the CRA first to see if they can even prove anything.  Maybe they don't have documentation, and it can be removed from the CRAs. Then send the Refusal and or C&D if they keep sending letters.

 

Part of me is worried I will stir a hornets nest with these letters by letting them know I care.

Link to comment
Share on other sites

JMO...but...if you're going to pay the $17k off...and your have a the money now...do it in one payment and be done with it.  You may attract the attention of other creditors, but at least you'll avoid wasying money on the finance charges.  Having that card open and in good standing does NOTHING for your credit scores with all the other negatives there.

  • Like 1
Link to comment
Share on other sites

No, actually, many JDBs "serve" you with a summons by throwing it in the sewer in front of your house, and then when you don't show uo in court, they get a judgement by default.  Completely legal.   You don't find out about it untuil they try ti grab your bank accounts.

I think in Florida they have to do more than mail it or sewer serve it.  

  • Like 1
Link to comment
Share on other sites

I think in Florida they have to do more than mail it or sewer serve it.  

 

Whew! That is a relief. Maybe I should hold off moving to another state if I have more rights in Fl.. I was considering moving to California, but looks like Midland goes after people there from some of the threads I've been reading here. I sure wouldn't move to Missouri after looking at the State SOL Chart.

Link to comment
Share on other sites

Ageed.  But....JDBs going after $50k may be tempted to ignore the law...

The ones that are contacting me, are only about 30k of the total debt,and have sent settlement letters that combined would add up to 10k to clear everything.The other 20k, I never hear anything about.

Link to comment
Share on other sites

Ageed.  But....JDBs going after $50k may be tempted to ignore the law...

 

Is sounds like rather than 1 $50k debt, this is a bunch of small debts which might be why they are not as quick to sue. Then again, I remember seeing a post recently where the bank/JDB let a $73k debt go past SOL without doing anything.

As far as paying off the debt now vs later, I would say later only because if the OP has only $17k, he may need that money in case the 1099c's start to fly around. The OP really is not in a situation for a prolonged fight with the IRS and would simply be better off paying the tax and moving on. On $50k, the tax would be between $12.5k and $17.5k (25% - 33% brackets).

Link to comment
Share on other sites

You can't get harder to serve than in China... Too funny

The biggest reason I wanted to pay off the $17000 was to save the $1440 in finance charges a year, and not get a $343 Visa bill every month. The good credit wouldn't be till the bad is off in 2 years.  Part of me is thinking of hiring Lexington,and having them challenge everything on my Credit Reports.  Just to see if I can get some stuff removed with a premptive strike. They charge like $100 a month.

 

If the strategy is to wait them out then why would you make a payment and re-start their clock all over again?

 

Hard to serve? They should try to collect - everything here in China is cash - I haven't seen a single check in 3 years and credit cards are for the few and the foreigners. If my creditors want to sue me I wish them a lot of luck. Since I am employed by the Peoples Liberation Army (read that Chinese Army) I wish them a lot of luck trying to collect even with a Judgment.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.