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I have a collection for an unsecure personal loan with a balance

 
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  • Answered by:LegalBeacon
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Customer Question

I have a collection for an unsecure personal loan with a balance of 16.980 dollars. date of the loan March 2007. Last payment June 2008. is there a statute of limitation. What is my best option. thank you

 

Optional Information:
Country relating to Question: United States
State (if USA): Florida

Already Tried:
settlement with collection agency.

Submitted: 303 days and 9 hours ago.
Category: Legal
Value: $28
Status: CLOSED
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Expert:  LegalBeacon replied 303 days and 9 hours ago.

Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. Is the Loan evidenced by a written promissory note? Thanks.

Customer replied 303 days and 8 hours ago.

the loan was with house financial. I am not sure

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Expert:  LegalBeacon replied 303 days and 8 hours ago.

Thanks. There is a Statute of Limitations. If there is a written contract or promissory note, the statute of limitations is 5 years from the last payment date; otherwise it is 4 years.



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to be of service to you. Please be aware that the information provided here is
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and any information given is simply information only and specifically is not
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Customer replied 303 days and 8 hours ago.

that will be on June 213 ? . its time for the collection agency to fail a sue ?

Picture
Expert:  LegalBeacon replied 303 days and 8 hours ago.

in the Yes, the collection agency would have to sue by June, 2013 in order to come within the statute of limitations....otherwise you'll have an absolute defense.

Customer replied 303 days and 8 hours ago.

thay asked me to pay the full balance in 60 months $ 289 a month. they asked my to provide my account information to do a monthly debit. it this my best option.

Accepted Answer

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Expert:  LegalBeacon replied 303 days and 8 hours ago.

It depends upon your financial situation. If you don't have anything for them to take, you might want to push back. Everytime you make a payment it starts the statute of limitations over again. Also, the collection agency bought this loan in all likelihood for pennies on the dollar so they have a huge profit spread in it even if they settle it. If it were me, I would work to settle this for much less by convincing them there is nothing for them to
get, and that if they were to pursue a judgment, I would simply file
for bankruptcy protection and get the judgment discharged-and even if I have no intention of doing so, it is still good leverage with them
because they do not know whether I will not do so--- then it is
unlikely they will spend the time and money necessary to get a judgment
they believe is uncollectible in the end.

Expert TypeAttorney
Category: Legal
Pos. Feedback: 98.3 %
Accepts: 13973
Answered: 7/2/2012

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