Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Hemorrhage

I heard that too, but apparently if you make a new payment, the clock is started all over again and your credit can suffer.


28 posted on 09/27/2007 2:19:41 PM PDT by Nomorjer Kinov (If the opposite of "pro" is "con" , what is the opposite of progress?)
[ Post Reply | Private Reply | To 4 | View Replies ]


To: Nomorjer Kinov

>> I heard that too, but apparently if you make a new payment, the clock is started all over again and your credit can suffer.

I am an attorney, and worked in debt collection law while I was in law school.

I know that is is the case in Texas ... I’m not sure about Florida (though I would assume it is similar). The Texas statute of limitations is 2 years from the point at which the debt first went into default. Making a payment can reset that date - thus restarting the statute of limitations, and allowing the debt-holder to sue.

Debt collectors will often try to pressure you to make a payment to reset that date (though they won’t expressly say so). You certainly don’t want to do that on a 20-year-old debt ... as I am virtually certain that the Statute will have run.

H


34 posted on 09/27/2007 2:32:12 PM PDT by SnakeDoctor (How 'Bout Them Cowboys!!!)
[ Post Reply | Private Reply | To 28 | View Replies ]

To: Nomorjer Kinov
I heard that too, but apparently if you make a new payment, the clock is started all over again and your credit can suffer.

Nope. There is no resetting the clock. The 7-1/2 years is from the date the account first went delinquent. A subsequent payment doesn't reset the clock.

That said, you could make a payment that brings the account completely current. Then a few months later you go delinquent again. That new delinquency will have its own 7-1/2 year reporting period. But partial payments that don't pay off the entire past-due amount have no effect on the reporting period.

36 posted on 09/27/2007 2:36:07 PM PDT by BearCub
[ Post Reply | Private Reply | To 28 | View Replies ]

To: Nomorjer Kinov

I heard that too, but apparently if you make a new payment, the clock is started all over again and your credit can suffer.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

There are a lot of tricks that the scam artists know. I once had to file in small claims court in North Carolina to collect a $500. bad check. The clown who wrote the check saw me on the way to the court house and tried to give me a partial payment of $10.00. I had been warned about this tactic so I refused anything less than full payment. If you accept any partial payment then it changes from a bad check charge to a loan which is impossible to ever collect. He waited until the court day and went in and paid the thing in full to the court rather than pay me. I got my money but it cost me a whole day and a hundred mile drive to get it.


57 posted on 09/27/2007 3:51:59 PM PDT by RipSawyer (Does anybody still believe this is a free country?)
[ Post Reply | Private Reply | To 28 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson