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I Was Told the Creditor Can’t Sue Us Unless We Make a Payment. – Laurie

“Dear Steve,

Hello. My husband and I have a debt situation. We had a good amount of debt. We both had lost our jobs and had to find new work. We went with a debt compa, ny to repay our debt in three years. We made our payments for the first year and a half which only paid the debt companys fees really. We were told by the debt company that after two years of not making a payment on your debt, they wont sue you. It has been almost four years. We are still having trouble getting by as we have just started working more. We make less money than ever. We struggle to pay our bills and cant afford to pay the debt off yet. In the debt program, we were to put away money every month and then pay off each seperate debt when we had enough. Needless to say we didnt end the program and they kicked us off after 6 months of not completing the program. We havnt paid any of the debt off after all. We were told by someone else that when it reaches 7 years, they writem it off . We reveived a letter that I am stressing about now from our major creditor. They said they had comfirmed my husbands work and assume we can pay the debt now. Even tho we cant afford to now. We have 7 days to contact them before they move forward to do whatever. If the debt company is correct who knows? That is what they always told us over the three years. And they never have attempted to take wages or anything.

Needless to say, I am really stressed about this now. It has been very quiet the last long while. I just want to know what they can actually do to us? We have had a very difficult time due to job losses and now work. We tried to get a loan prior to going witht he debt company but the bank would not help us at all.We were also told that if we start making a payment, the bank can then sue us after we have made a payment. PLEASE send me some advice. I will be getting an inhertance in the nearer future which would pay it all off but for now I dont kno0w what to do about all of this… I am very stressed….I want to repay it but its not possible now.

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Laurie”

Dear Laurie,

Sadly it sounds like whoever that debt company was they gave you some really bad and incorrect advice.

It sounds to me as if you should carefully look at a bankruptcy now to end the debt before you are sued and before you get the inheritence.

You owe it to yourself to click here to find a local bankruptcy attorney and talk to them about your situation. Let’s get you armed with the facts and then you can make a good decision.

The reality is that until the statute of limitations runs out on the debt in your state, you can be sued for breaking your agreement with the creditors. After that time has expired the debt collectors can still attempt to collect.

Your most realistic options at the moment are:

  1. Do nothing, but you already see how that’s working for you.
  2. Take charge and do something that will resolve the situation and let you move forward, like bankruptcy.

Contact the bankruptcy attorney and report back in the comments with what you learn and then we’ll move to the next step.

Please post your responses and follow-up messages to me on this in the comments section below.

Sincerly,
Steve

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.




About the author

Steve Rhode

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.

1 Comment

  • I think it’s great advice to talk to a bankruptcy attorney, but people in a similar situation may also want to talk to a consumer attorney who could either help them defend the debt or file a suit against either the collector  for FDCPA violations or against the debt settlement company for various legal claims like fraud and unauthorized practice of law.

    For example, if this was the first letter and it came from a collector on behalf of the creditor or a debt buyer, the letter cannot provide only 7 days to pay.  Depending on the state, garnishment may also not be a possibility.

    It pays to learn the options when facing debt!

    — Amy Clark Kleinpeter

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