Should I Try to Arrange a Payment Plan with A Collection Company?

by Jeannie

A credit card company apparently got a $5,000.00 judgment against me while I was out of work & homeless during a 2 year period (I lived with various friends during the time). Finally found a job a 3 years ago (making nearly 1/2 of what I used to) and just received a notice from a collection agency. I believe the SOL for the debt will expire in 2012. Should I contact the collection agency and try to work out a payment plan, given my already very tight budget?

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Apr 13, 2011
Statute of Limitations on Judgment


Unfortunately, the statute of limitations on judgment debts is different. According to our resources, a judgment creditor has fifteen years in Ohio to collect a judgment. And in most states, a judgment debt can be renewed.

We would strongly encourage you to talk with an attorney for two reasons:

1. You should talk with a consumer law attorney to find out whether the credit card company legally obtained this judgment against you. If you were not properly served, it may be possible to have the judgment vacated. This is not something we recommend you attempt without legal help. You can find a consumer law attorney in your area who specialized in consumer law. Find out how to get FREE or low cost legal advice about debt collection from a consumer law attorney here.

2. If the judgment is valid, please make an appointment for a a free consultation with a bankruptcy attorney. I am not suggesting you need to file, or should do so, but you do need to find out what the creditor can and cannot do to collect from you. In most states, judgment creditors have more avenues for collection available to them than creditors without judgments. Considering how tight your finances are right now, the last thing you need is to find out your wages or bank accounts are being garnished. (We are not saying that will happen to you, only that you need to know what your rights are.)

We hope this helps!

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