Time Limit to collections

[prescottmonkey]

When I was married a LONG time ago, I had a lot of debt. I tried to pay it all off using a debt management agency but, after paying $23,000 over three years, I still owed basically the same amount as I owed before. After I left my husband, I had to stop paying all my debts because I could no longer afford any of the minimum payments. I tried to go bankrupt but couldn't because I was in the middle of a divorce (finally final this last May!). Now, three years later, I am still being hassled endlessly by the collectors although I have not been sued by any of them. Now I have a cunundrum. I have a dismissed Bankruptcy on my record and haven't paid on my debts for over 3 years. Some of my debts are 10 years old! What should I do? Should I wait till the 6 year time limit? Should I pursue a bankruptcy now since I am finally divorced? I am never going to be able to afford to pay off the debt I don't think because, in addition to my significant living expenses (raising 2 kids by myself), I have a car payment of $500 per month and student loans of $500 per month. What should I do? Any suggestions?

[AAAArt]

I feel your frustrations. You were caught in a very unfair situation. There are some questions, however, which need to be answered before we can be of much help.
1. How long ago was your BK? Under the new laws there is a certain time period you must wait before you can file again ( and in a discussion among atty's which I read, I believe that it is retroactive)
2. Did you file jointly or individually? (This may make a difference)
3. Were these debts listed in your Bk? (If so, you're almost home free, just a few letters to them w/ copies of your Bk discharge and they have to stop trying to collect and you can have your credit report changed to reflect that they were included in Bk on _______(date)
Now, of they were your ex's debts, then they are just trying to get whatever they can. Inform them that you were divorced and that you are not responsible for his bills and that you have filed Bk. They might want a copy of the divorce decree and Bk discharge.
Basically, I am doubting that you have a debt problem, but you do have a paperwork problem.
Now the most practical advice. SEE AN ATTORNEY. Most all (including BK)offer a free initial consultation. be prepared to tell your story and give them the dates and answers to the questions above. Only they can give you true legal advice, but we will be pleased to support you and offer whatever advice that we can offer based upon our personal experience and reading/research, but this is too important to be left to heresay.
BTW, Please don''t pay them anything or contact them until you get legal advice. Doing either has the possible consequence of starting a new "clock" on the debts and definitely raising their interest in collecting.
Best wishes, Art

[Minnymouth]

AAART,

I understoood her to say that she had a bankruptcy that was DISMISSED 3 years ago...... not discharged....

If that is the case she can file again now, I believe with no problems, depending on the reason for dismissal.

She did not say whether it was a Chapter 7 or 13 that got dismissed.

Yes, she needs to speak to an attorney about her options and what she is up against.

Minny

[AAAArt]

Thanks Minnie, I had misread and thought she had said that it was
'discharged" 3 years ago.
Well, as we know, student loans are not normally discharged. She could file for a hardship, but I hear the is very difficult to qualify for and she might look at consolidation (which can only be done with certain types of student loans)
I really don't have the foggiest idea re: the statute of limitations for collection of debts, only that if you start paying them (or maybe even by contacting them), the clock starts up agoin as new.
On Law and Order SVU, they had a case where the statute of lllimitations on rape ran out in 5 years. Not right for that to be and Bk to last 10 years.
Personally, PrescottMonkey, I think that you are in need of the emotional release and wiping the slate clean that Bk might offer, but you're situation needs consulting with an atty.
Sorry for any mis-info and good luck, Art

[Minnymouth]

Prescottmonkey,

Keep in touch with us and let us know what an attorney tells you...

Best of luck,

Minny

[lostsoul23]

student loans of $500 per month. What should I do? Any suggestions?

I know the orginal message is about 2 months old, but, in hopes the orginal poster is still searching for some info, I wanted to offer some insight.

I used to do debt collection, and focused on student loans. In 1997 or 98, the exact year escapes me, the proverbial 7 year rule on student loans was done away with. It's pretty much 'no holds barred' on collecting them now. When you file BK, all debt/assets must be included, and it will put an automatic forebarance on your student loans. Getting them discharged in bankruptcy was hard before, and it's even harder now under the new laws. You basically have to prove that paying them back would be the difference between being homeless or not...that's the kind of hardship they are looking at.

If you're in default on the student loans, I can walk you through the process of getting rid of that default status, I didn't want to go through it if it wasn't the case.

Good luck.