I Want to Settle and Old Debt But Not Start The Clock On It Again


Dear Steve,

I got an RV loan with a credit union that was affiliated with my work union. 17% interest $15000 loan with zero credit score.. but I needed a place for my wife and dogs to live and be with me.

Weekly extended-stay hotels were killing me with pet deposits, etc. it worked out great for about a year, then I was arrested and extradited (13yr old charges) hundreds of miles away from my family, by the time I was released and making money again, I was $1,600 behind in payments, and the bank wouldn’t work with me on forbearance -nada. We ended up giving the RV back, and it sold at auction, and we still owe $9,800.

I AM NOW WITH A 700 CREDIT SCORE AND SAVINGS AND LOOKING TO BUY A HOUSE. ONLY THIS DEBT IS STILL HANGING over my head. I would love to settle this debt with them, but I am scared they won’t be willing to knock off some of the interest or work with me at all and don’t want to reset the clock on collections and legal action. What do I do?



Dear Wes,

That sounds like a traumatic experience for sure.

That is a fascinating double-edged sword issue. The idea of reaching out to them yourself or having someone else contact them on your behalf could technically trigger a reset of the Statute of Limitations since you would be acknowledging the debt.

But that would only be a concern in a handful of states where the Statute of Limitations can be rest verbally. In other states, it would not be reset unless the acknowledgment was in writing.

The only way to know for certain would be if you consulted an attorney that is licensed to practice law in the state you live in. Only such an attorney can give you a legal opinion based on your unique circumstances.

See also  Can Claim Be Dismissed Because of Expiration of Statute of Limitations? - Christopher

One place to look for such an attorney would be here.

Retaining an attorney to deal with this for you is the absolute best possible solution unless the attorney is a total turkey. It gets you as close to a factual legal and safe position to deal with this.

But then again, the attorney could represent you in contacting the creditor and attempt to negotiate the settlement.

What you did not mention was how old this $9,800 judgment is against you? If this is two years old or six years old, makes a big difference.

The situation we face is we have an old lingering situation with a new wish on a short timeline.

I have a few questions for you so I can better answer your question. You can post the answers in the comments section below.

  1. When was the judgment for the $9,800 issued against you?
  2. Do you have any other problem debts you owe?
  3. How much cash on hand do you have to offer them a lump sum settlement?
  4. Is your primary desire to buy a house now or take some time to build up your credit score to get a lower interest rate?


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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