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JBaxLaw
JBaxLaw, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 11331
Experience:  Wide experience in consumer rights law.
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I lost my job 1/4/2010. I had to go on unemployment after that

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I lost my job 1/4/2010. I had to go on unemployment after that and I am still not fully employed. I work as an independent person and only get 1099 income. I have a credit card from Capital One that has a $9800 blance. My Experian credit report shows last date of activity was 8/1/2010. The dept has been turned over to a company named Portfolio Recoveries Associated. They called my and said that the matter was up for "Civil Suit" if I didn't do something. I read somewhere where the statue of limitaions in the state of Alabama is 3 years. They did give me the option of paying 25% of the debt as a down payment (Which I cannot afford to do) and the would spread the balance over 36 months. I feel like I could pay about $800.00 down if the would work with the one the balance with no interest charges for 36 months. Should I make them this offer ??

JohnQAttorney :

Hello, I am a professional here to assist you. I appreciate your use of this service.

Customer:

Thank you

JohnQAttorney :

I see that you have joined me.

Customer:

I am hear

JohnQAttorney :

When you sign a repayment agreement, the "clock" on the statute of limitations starts over. This is an important consideration in these matters.

Customer:

Ok

JohnQAttorney :

The statute of limitations on credit card debt in Alabama is three years.

Customer:

Would the time on the statue of limitations have started on the last date of activity reported from Capital One ?

JohnQAttorney :

That means the statute of limitations could be up as soon as August or September. The time frame runs starting on the date at which you had missed a payment.

JohnQAttorney :

So if a final payment was in August, the next missed payment may have been September.

Customer:

That is very possible.

JohnQAttorney :

The last activity may reflect the last payment. If so, that means the period would run when the next payment became delinquent.

JohnQAttorney :

Any questions?

JohnQAttorney :

Please follow-up as needed.

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JohnQAttorney :

Still with me?

Customer:

Yes I do have another question. Do you think the repayment plan that I mentioned is reasonable ?

JohnQAttorney :

That is a personal choice depending on one's own finances. The problem a debtor faces who is at the end of a statute of limitation period is that once they start paying again or sign a repayment agreement the statute of limitations starts over and then the creditor may file suit. When the statute of limitations is expired the debtor is protected in that a credit card debt cannot be pursued in court.

Customer:

Or should I sit tight and let the statue of limitations run out ?

JohnQAttorney :

I am limited to providing information so I cannot tell you what to do in such a situation. This is a matter of one's personal tolerance. It is possible for a debtor to wait until a civil suit is file, if that occurs, and then seek to either pay off a debt or seek a repayment plan.

Customer:

OK

JohnQAttorney :

Any other questions?

Customer:

No

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