Sign in to follow this  
nightmare

Paying my debt

Recommended Posts

So i agreed to Moss Law Firm for paying my debt in settlement, that was done over the phone.

I received their paperwork of requiring my signature.

 

However there are few things they have listed out.

 

And i am unsure what this one means. So hopefully you fellas can help me out.

 

If i am right, i am thinking they are saying all my SOL will begin once again after my final payment has been made?

 

4. In exchange for capital one bank USA willingness to permit you to settle the account and pay the settlement amount in installments, you agree to toll the running of any applicable statue of limitations for any cause of action accruing. This tolling agreement will be in effect for one hundred and eighty days from the date the final payment is due under this agreement. At the end of the tolled period, any existing SOL period that had not already expired before the date of this agreement will recommence.

 

(Does that mean ANY and ALL OF MY SOL, will recommence, if i pay for this debt in INSTALLMENTS?)

What does it mean.

Please help , as this is my 1st time dealing with this.

Share this post


Link to post
Share on other sites

No. what they are saying is you are tolling the SOL during the agreement.  They do that so you don't agree to it, then not pay as agreed, and the sol runs out, then they are out of luck.  So if the sol is tolled during your repayment peroid, if you do not pay as agreed, then they have time to file a suit agaist you before the sol runs out.  After you have paid as agreed, 180 days later, if there was any sol left, it picks up where it left off.

 

wouldn't matter then though, as the debt would be paid.

  • Like 1

Share this post


Link to post
Share on other sites

TX has a four year SOL. If you are near or past it, why would you want to reset it and be open to being sued over the next four years. Foolish mistake. I would advoid this, don't give them a dime. Learn  now, or learn later.

  • Like 1

Share this post


Link to post
Share on other sites

This current debt is not 4 years yet, long from being 4.

I am just asking because there could be other debt that is close to the SOL.

 

I can only afford this 1 and i am willing to pay for it.

But i am asking if i do pay this 1 in installments, will it set the SOL timer for my OTHER ones?

Share this post


Link to post
Share on other sites

This current debt is not 4 years yet, long from being 4.

I am just asking because there could be other debt that is close to the SOL.

 

I can only afford this 1 and i am willing to pay for it.

But i am asking if i do pay this 1 in installments, will it set the SOL timer for my OTHER ones?

I would want to consider my plan of action should another alleged debt fall into the hands of a DC attorney prior to the SOL running on the second alleged default. Having made a commitment (failure to complete such commitment likely to end in a lawsuit against me) to pay installments that are "all that I can afford" I would think my ability to settle the second debt in the same manner as the first debt would be problematic.

 

Each valid cause of action/account would normally have it's own SOL.

Share this post


Link to post
Share on other sites

Well I received a letter from this law firm about 3 weeks ago.

I called them and agreed on paying this in installments for 6 months.

They said the debt is still own by capital one USA . And that they r only representing capitalone to collect this debt.

I just don't want to pay this debt then all of my sol will reset. That's is what I am worried of.

Or is what Shellie saying is correct?

Share this post


Link to post
Share on other sites

Paying this one debt WILL NOT reset the SOL on any of your other debts...but...paying it will get the attention of your other creditors.  Creditors have an agreement with the credit reporting agencies...any activity gets reported to them.

 

If you have a pile of other debt waiting in the wings, you have no good reason for paying this one.  If you haven't signed anything yet...don't.  It will not help in anyway.

  • Like 1

Share this post


Link to post
Share on other sites

Paying this one debt WILL NOT reset the SOL on any of your other debts...but...paying it will get the attention of your other creditors.  Creditors have an agreement with the credit reporting agencies...any activity gets reported to them.

 

If you have a pile of other debt waiting in the wings, you have no good reason for paying this one.  If you haven't signed anything yet...don't.  It will not help in anyway.

DITTO!

Share this post


Link to post
Share on other sites

Paying this one debt WILL NOT reset the SOL on any of your other debts...but...paying it will get the attention of your other creditors.  Creditors have an agreement with the credit reporting agencies...any activity gets reported to them.

 

If you have a pile of other debt waiting in the wings, you have no good reason for paying this one.  If you haven't signed anything yet...don't.  It will not help in anyway.

Okay thanks now I understand.

So what should I do at this point ?

Share this post


Link to post
Share on other sites

Its hard to say what your next step should be.  We don't know enough about your situation.  If you've got money to work with, you might be able to negotiate your way out.  If not, you might want to look into bankruptcy.

Share this post


Link to post
Share on other sites

I don't have much,just enough to get by monthly.

But I have about $200-300 spare that I could afford the installment.

What do most folks on the forum do?

I don't think they all file for bankruptcy?

Share this post


Link to post
Share on other sites

I don't have much,just enough to get by monthly.

But I have about $200-300 spare that I could afford the installment.

What do most folks on the forum do?

I don't think they all file for bankruptcy?

Each person should do what makes sense for their situation, attitude, and resources.

 

Many options are available. Some may be viewed as bit unsatisfactory or even impossible:

  • Pay everything anyone alleges is owed.
  • Stick head in sand and ignore everything. Likely leading to default judgment(s) and a painful financial situation with very limited or no options. (My last choice.)
  • BK under chapter 13 or 7. Free consults with a competent BK attorney or two are probably a good idea to educate ones self. Exemptions under BK are likely to mirror the ones under an adverse judgment.
  • Negotiate a discounted lump sum payoff with all creditors making claims.
  • Agree to make monthly payments (less likely to achieve any discounts) with all creditors making claim.
  • Aggressively defend any and all lawsuit(s) until a favorable settlement appears (with or without representation).
  • Aggressively defend any and all lawsuit(s) until one party wins (with or without representation). Optional: appeal if the judge erred and trial court record was properly made.
  • If available, upon being sued, motion the court to compel arbitration. (private contractual binding arbitration clauses have appeared and disappeared in CC agreements since the late 1990s.)
  • A mix of the approaches above.
  • All but the first three would likely benefit from having some leverage. (being collection proof, top gun consumer attorney representation, compromising pictures of opposing counsel, ;-) etc.)
  • Others options as they come to mind.

There is not an easy button from my experiences and others experiences that I have read.

 

The other side is an amoral machine that routinely acts as if it is merely crushing an insect when dealing with a "deadbeat" consumer.

 

The good news is that others have achieved favorable (subject to individual interpretation) outcomes and I have no doubt others will continue to do so. It is often intelligent hard work that not everyone desires to engage in.

 

I would suggest reading some of the TX threads that look interesting to get a feel for what others from TX have done and experienced.

 

Original creditors/OCs that originate credit cards are not as easy to defeat in court than junk debt buyers/JDBs that buy the alleged debt from OCs.

Share this post


Link to post
Share on other sites

How old is the debt? If it's near or past SOL and I wasn't worryed about my credit report, I would prpbably not pay it. IF your dealing with the real OC and had a way to go, I might work something out with them. But, if you screw up or miss a payment you have reset the SOL or extended it, then you are screwed,

Share this post


Link to post
Share on other sites

This debt is no where close to the SOL.

This "Law Firm" is claiming they are ONLY representing Capital One, and that they are not Junk debt buyer.

But how do i really know if that is the case?

I pulled up my free annual credit report and it shows that this account is "Charged Off" (Doesn't that mean Capital one sold this debt to a JDB?)

 

I ONLY have enough money to make this monthly installment, however one of you said that if i do that, it will send a signal to all the other creditors / JDB that i am making payment for a certain debt. So i am afraid they will all come after me, and i will NOT have enough to pay.

Share this post


Link to post
Share on other sites

They can't touch your wages until it's put in the bank, then the bank will give it to them. Dtop your direct deposits, clean out your accounts.

Share this post


Link to post
Share on other sites

This debt is no where close to the SOL.

This "Law Firm" is claiming they are ONLY representing Capital One, and that they are not Junk debt buyer.

But how do i really know if that is the case?

I pulled up my free annual credit report and it shows that this account is "Charged Off" (Doesn't that mean Capital one sold this debt to a JDB?)

 

I ONLY have enough money to make this monthly installment, however one of you said that if i do that, it will send a signal to all the other creditors / JDB that i am making payment for a certain debt. So i am afraid they will all come after me, and i will NOT have enough to pay.

"Charge off" ONLY means it is past 180 days due.  They use it for internal accounting but it doesn't mean anything to us.

 

A couple questions that would help are, How many cards do you have that are 180 days past due? and Rough values alleged to be owed on these cards ie 2k, 4k, and 7k.

 

The ONLY way to be certain that Crap1 still actually owns the account is to call them.  They will transfer you to their "resolution" department and you can then ask for the status of the account.  They will likely say, "we still own the account but _________ is acting as an internal CA.  Any deals need to be through said CA."

 

From your case, it seems these are relatively new Charge Offs (far from SOL).  This letter from a "Lawyer" is likely a scare tactic.  I had half a dozen charge offs and EVERY ONE OF THEM sent me a "Lawyer" scare letter within months of charge off.  Your debt will then go from CA to CA until Crap 1 either sues you, or sells to a JDB.

 

I would seriously reconsider a payment plan.  It makes no sense, especially for someone who is scraping by as is.  What happens if your car breaks down, and you need the money for brakes, or a thermostat or ANYTHING!  You won't be able to pay said CA, you will have reset SOL, and you now have a handful of other CA who see you are paying, and then they step up on their game.

 

You need to decide to either FIGHT, or settle.  If you settle, YOU LUMP SUM!!!  You plan on paying them 250 a month, and you owe them $1500?  What you should do is ignore them (of course make sure no lawsuits are filed) until you have a lump sum and some bargaining power.  I actually waited until I Had enough to lump sum a few cards, then made calls, and settled between 22.5%-35%.

 

I vote NO on the payment plan settlement!  If it was just charged off, i think it's unlikely they sue for a bit.

 

Nothing I said is guaranteed and I am not a lawyer.  Speaking from my own experience

Share this post


Link to post
Share on other sites

Thanks Jdoe, that is the suggestion and feedback i was looking for.

I have about 4 in total, summing at about 8k all together.

 

So now since i spoke with *This particular 1* about making the payment options, i have not signed their paperwork yet. What should i do at this point? Do i send them mail requesting like DV? I have no idea what my next step is.

 

Out of all these accounts, this is the most current one i'd say.

And it is definitely more than 180 days since i last paid. It is definitely over a YEAR at the very least.

Share this post


Link to post
Share on other sites

Something you might want to do is check your local court records to see how often Capital One actually files suit against consumers.  I'm in Dallas, and just checked Dallas, Denton and Collin counties...looks like the last on by Capital One in Dallas county  was 2010, and the last one in Denton County (other than 1 stray case this year that might be tied to a foreclosure) was in 2007, Collin County was 2009.  If you do this online, check for Capital One, Capital One Bank and Capital One Bank N.A.  The vast majority of suits that list C1 as a party are filed by JDBs, as assignee of C1.  It is my understanding that C1 hasn't sold debt to JDBs in quite a while, and may have stopped entirely like Chase and, I believe, Wells Fargo did.  As recent as your chage off was, it would not have been sold yet. 

 

Just a thought, it might put you somewhat more at ease.

Share this post


Link to post
Share on other sites

So should i pretty much just ignore this? Until i have enough money for a lump sum?

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this