How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Guru_Guy Your Own Question

Guru_Guy
Guru_Guy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 2418
Experience:  Years of experience providing advice on bankruptcy and other alternatives to debt problems.
Type Your Bankruptcy Law Question Here...
Guru_Guy is online now
A new question is answered every 9 seconds

SHOULD I FILE BANKRUPTSY

Resolved Question:

ME AND MY DECESE HUSBAND BOUGHT A TRUCK IN JULY OF 1995 . MY HUSBAND PASSED AWAY IN OCTERBER, 1995 . I PAID ON THE TRUCK FOR TWO YEARS . I HURT MY BACK AND COULDNT WORK , SO I GOT BEHIND ON THE PAYMENTS . THEN I MOVED TO CALIF. I STILL HAD THE TRUCK . GMAC SUED ME IN COURT, I NEVER PAID THEM . THEY SIGNED OFF OF THE LOAN . NOW 13 YEARS LATER THEY HHHHAVE TURNED THIS OVER TO A COLLECTION AGENCY, THEY SAY I OWE THEM 56.000.00 DOLLARS I DONT HAVE THE MONEY TO PAY THEM , I WAS TOLD BY A FRIEND THAT AFTER 10 YEARS THEY HAVE TO TAKE THIS OFF YOUR RECORD , I HAVE ANOTHER FRIEND THAT SAYS THAT IF I DONT FILE BANKRUPTSY AND GET THIS OFF MY RECORD THAT IF I EVER GET A HOME I WONT BE ABLE TO SELL IT WITHOUT PAYING THIS FIRST . IS THIS TRUE , DO I NEED TO FILE BANKRUPTSY.          THANK YOU GIPSY ROSE QUALLS...XXX@XXXXXX.XXX,,,PHONE XXX-XXX-XXXX
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Guru_Guy replied 6 years ago.
Hello, and sorry to hear about your situation.

There are several reasons why this loan is probably no longer valid. First, if they wrote off the loan, and you received a 1099 at the time, then they gave up any further rights toward collection.

Even if that did not happen, it is possible the statute of limitations on the collection has passed. Under California law, legal action on a debt must begin within four years of the last payment made. So if you have not made a payment in 11 years, it is hard to see how any collector could get passed the statute of limitations problem.

It sounds to me like this is an unethical collection agency trying to collect on a debt that is no longer valid. You may want to consider responding to them that this debt is no longer valid or legally enforceable. You can also demand that they provide you with debt validation. This does not mean they have to prove the statute of limitations does not apply, but hat they are the valid current holder of the debt. Debt validation is very difficult for collectors because they need to provide a ton of detailed information about the debt. For more on this topic, you may find this article helpful:

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

Also, as for the unpaid debt showing up on your credit report, this should have gone on the report 180 days after your last payment. It then remains for 7 years and then should be taken off. It sounds like you should be able to challenge this and have it removed. For more details, read this:

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

Bankruptcy should not be necessary in this situation since it sounds like the debt and credit report are already invalid. If you filed a bankruptcy now, that would ruin your credit rating for the next ten years.

The important thing to remember is that if these collectors try to take you to court, it is very important to respond to any legal motions and deny the claims. Otherwise a court could enter a default judgment against you. Even if you have a valid statute of limitations or other defense, those don't count unless you raise them with the court.

Also, do not agree to make any payments. A new payment revalidates the debt and renews the statute of limitations.

I hope this helps!


___________________

Please keep in mind that information in this forum is for informational purposes only. It is not legal advice and does not constitute creation of an attorney client relationship. Before acting on any such information, you are always advised to consult with an attorney licensed to practice in your jurisdiction who can take the time to review all the facts and laws relevant to your situation.




Thanks.
Guru_Guy, Attorney
Category: Bankruptcy Law
Satisfied Customers: 2418
Experience: Years of experience providing advice on bankruptcy and other alternatives to debt problems.
Guru_Guy and other Bankruptcy Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
< Last | Next >
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    3203
    Bankruptcy Lawyer. Experienced.
  • http://ww2.justanswer.com/uploads/TL/tleeders/2012-6-13_204815_TSL1.64x64.jpg Terry L.'s Avatar

    Terry L.

    Attorney

    Satisfied Customers:

    2204
    Better Business Bur 15yrs bankruptcy experience. Chicago Bar
  • http://ww2.justanswer.com/uploads/mnphillips2/2009-03-13_203105_10984459-249293407.jpeg Phillips Esq.'s Avatar

    Phillips Esq.

    Attorney-at-Law

    Satisfied Customers:

    950
    B.A.; M.B.A.; J.D.
  • http://ww2.justanswer.com/uploads/CO/cortrightlaw/2011-12-5_4117_Kevin.64x64.JPG cortrightlaw's Avatar

    cortrightlaw

    Attorney

    Satisfied Customers:

    490
    Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
  • http://ww2.justanswer.com/uploads/Jay1968/2006-12-03_004423_JoeRossPhoto.jpg JoeLawyer's Avatar

    JoeLawyer

    Attorney

    Satisfied Customers:

    376
    Attorney in the practice of Bankruptcy Law since 1996
  • http://ww2.justanswer.com/uploads/DY/Dylatess/2012-9-11_1968_BHBTemplePhoto.64x64.jpg dylatess's Avatar

    dylatess

    Attorney

    Satisfied Customers:

    370
    35 plus years of experience specializing in bankruptcy law
  • http://ww2.justanswer.com/uploads/US/USLawAnswers/2012-9-20_23143_20090105211638Headshot3b.64x64.jpg Brent Blanchard's Avatar

    Brent Blanchard

    Bankruptcy Attorney

    Satisfied Customers:

    315
    Twelve years experience in all aspects of debtor & creditor BK.