Very old debt

[lillymarlene]

Hello, I have not posted in a long time, but I have a question. I just received a letter from a junk debt buyer, that as of October 2016, I owed $3,200 on a credit card. I successfully completed my Chapter 13 in 2014. I don't believe I got any credit cards during the bankruptcy or for years after. I have always used PO boxes for mailing addresses for a long time. This was to my house address. They also did not use my middle initial which it seems a lot of business or government agencies use. I only have two debts these days, the last of my mortgage, and one very small credit card that I use for emergencies. Experian lists those two and one paid off for an automobile that was totaled. Should I just ignore this? Hopefully I don't get nasty surprises of being hauled into court or having my wages from my part time job garnished. I do not want to call their toll free number, since maybe they do not have my phone.

[justbroke]

If it's not on your credit reports I wouldn't worry too much. Also, the statute of limitations for your State will matter since that SOL will determine whether they can do anything other than write strongly-worded letters. If they do try to sue you, your likely offense to a judgment is that the SOL has run. You could do a verification of debt on them and they'll have to show that debt. The problem with the Chapter 13, since it's always an asset case, is that if the original creditor wasn't listed, then that debt wasn't discharged. Again, your best offense is that the SOL has run.

[commercial]

I wouldn’t ignore the letter, but I also wouldn’t panic or immediately call the number listed on it.

From what you described, there are several things worth checking first. The biggest question is whether this debt actually belongs to you. If you completed Chapter 13 in 2014 and don't remember opening a credit card afterward, a debt supposedly dating back to 2016 deserves some verification. The fact that the letter was sent to your home address instead of your usual PO box and doesn't include your middle initial doesn't necessarily prove it's a mistake, but those details are reasonable reasons to be cautious.

I would start by checking your credit reports with all three major credit bureaus and looking for any account that matches the alleged debt. Keep in mind that an old or purchased debt may not appear on your current credit report, so its absence doesn't automatically mean the claim is invalid.

You also have the right to request information about the debt. Under federal debt collection rules, a consumer can generally dispute a debt and request validation. If you don't recognize the account, it's usually better to dispute it in writing rather than simply ignore the letter. Keep copies of everything you send and receive, and consider using certified mail so you have proof that your dispute was delivered.

Your completed bankruptcy is another important factor. Depending on when the account was opened and whether the debt was included in your bankruptcy, the bankruptcy records could help clarify whether you actually owed this debt or whether the debt was discharged. It may be worth reviewing your old bankruptcy paperwork or contacting your bankruptcy attorney if you still have access to those records.

I also wouldn't assume that receiving a collection letter means your wages are about to be garnished. Generally, a debt collector cannot simply garnish your wages because they sent you a letter. There is usually a legal process involved, and ignoring court papers can create unnecessary problems. If you ever receive an actual lawsuit or court summons, don't ignore it—get legal advice promptly and respond by the deadline.

If you are uncomfortable calling the collection agency, you don't have to start there. You can first investigate the account, review your bankruptcy records, and send a written request for validation. If the debt appears legitimate but you believe it was discharged in bankruptcy or is otherwise not collectible, that's something you may want to discuss with a consumer-law attorney.

Organizations such as nelson, cooper & ortiz, llc may also be able to provide information about commercial debt collection matters and the legal options available in a particular situation. The main takeaway: don't ignore the letter, but don't assume you owe the money either. Verify the debt, document everything, and be especially careful not to miss any genuine court notice.