Been researching debt collection for weeks! Sleepless nights, etc. I've got a good one for you. Here's the situation:
Initial contact from CA (attorney) October 8, 2007 attempting to collect a 28,000 debt. Responded one week later disputing the debt and was sent an old credit card statement for an account which no longer appears on my credit report. Didn't know about the Statue of limitations at the time but know now that the original account is past the SOL, and has been sold three times. So I didn't respond thinking I'll see what happens. Nothing for almost a year til now. Now I just received a 'copy of a proposed judgment' including payment terms on an actual civil court judgement form complete with a case number in the upper right, from the attorney wanting me to sign and return in the mail. (Didn't do it.) My fear is that they've gotten ahold of my ex-wife who lives in another state and is being scared into an agreement with them. I sent out a certified return receipt letter continuing to dispute the debt and pointing out to them that the sol has expired. My question is this: Can they collect on an SOL debt after the fact and still obtain a judgement against her even though the SOL has expired and I continue to dispute the debt in my state? (The SOL in her state is 4 years and 6 years in mine)? Do I still have rights to fight it in my state?

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What state do you live in? Is this a joint account or is your ex an Authorized User only? What type of debt is this? I would check the court website or go down to the courthouse listed and verify that a suit has indeed been filed. They can still attempt to sue on an out of statute debt in hopes you won't respond. That way they can obtain a default judgement. If it is indeed OOS then you must respond with the affirmative defense of SOL and be able to prove it.

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This is a pre-divorce joint credit card account that dropped off my credit reports in 12/ 2007. I am in Michigan (SOL 6years) and she is in California (SOL 4years). Even though the divorce agreement states that she would be responsible for the debt she obviously didn't make any payments and I realize the CA can come after both of us. The DOLA is listed on my credit report as 1/2002 and the account was charged off/ sold to another lender in 7/2002. Does the credit report hold up in court as proof? That's all I have.

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Were you able to verify that a suit has indeed been filed? It would be up to the judge as to whether or not an old credit report is enough proof. Bank statements or old credit card statements showing last payment and past due as of)____ would be better. DOLA is irrelevant. Date of First Default and Date of Last Payment would be the pertinent dates. I think the key factor that will help is you stated that this has been in the hands of 3 different JDB's so chain of custody and documentation on their side will be fuzzy at best.

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I would also send this JDB a copy of your divorce statement that states that she is responsible for this account. Because that is also a court doc. Then they should leave you alone.

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This was a pre-divorce joint credit cart account. Our divorce agreement states that she was to be liable for paying off the debt, but obviously never made any payments on it. She got remarried and moved to California (SOL 4 years), and I live in Michigan (SOL 6 years). The last activity according to my credit report was in 1/2002 and the account was charged off/sold to another lender in 7/2002. I took your advice and went down to the courthouse today. The CA attorney has filed a proposed judgment requesting consent and has until 12/08 991 days) to serve a summons. Does the information on my credit report serve as proof of SOL? I have copies from three different dates, 2004, 2007, 2008 and they all report that the OC charge off amount is 14,559.00, and the next purchaser of the account, Chase Manhattan, also charged it off/sold to another lender in 2005 at 14559.00. The current CA is now trying to collect over 20,000.00. Can they attempt to collect from my ex in California even though I have been disputing this debt in Michigan for almost a year?

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Sorry, the attorney has 91 days..not 991..typo, to enter a summons and complaint. He filed the proposed judgment asking for my signature on Sept. 29, 2008 and has until Dec. 29 to enter the summons.

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To puddlejmpr: Unfortunately, a divorce agreement does not cancel out a credit card contract that was entered into before the divorce. I know it doesn't seem fair, but when the judge signs a divorce agreement all he is doing is giving his "okay", so-to-speak, to agree to your divorce settlement, whatever that is. He isn't entering a judgment to change the original credit card agreement.

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that sucks. Sorry I thought I read something on that. I was wrong.

Also with the amount they are trying to collect from you could be right. Even though the account is charged off the current CA can add on interest per your credit card agreement. I had a credit card with a $200 limit and now they are trying to collect $2500 and they said it was interest. That one is getting close to SOL. I refuse to give them that much. I am waiting for a good settlement offer or SOL which ever comes first.

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Were you ever served with a complaint? How is he trying to enter a judgement if a complaint has not been served.

Interest can only be added if the original contract and/or state law allows for it. I would send the lawyer a debt validation letter requesting a complete breakdown of all the charges. If they refuse then request Validation during Discovery.

Since the original purchaser did not add any interest to the balance I would assume that interest is not allowed. They are not going to pass on interest out of the goodness of their heart.

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Well, if worse comes to worse, I do think, because of her agreement to pay this credit in the divorce agreement, I can turn around and sue her for any judgment against me, but what a headache. I'm still wondering, however, if they scare her into a settlement in California, does that waive my legal and SOL rights in Michigan? After all, aren't collection attempts supposed to cease, ( I have sent a dispute, validation, and C&D letter, by return receipt) until a judgment has been granted...in either state? Am I still entitled to due process regardless? Or are their collection attempts illegal in California because I continue to dispute the debt in Michigan?

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To Cellular: It is a proposed consent judgment. Basically, he's telling me what terms they want, payments,etc, filed it with the court and got a case number, and sent me three copies. He wants me to sign and return so he can have it entered into court without having to file an actual summons. Ridiculous! Like I said earlier, if I don't sign it, (which I won't, duh..) he has 91 days to serve me with a summons. Another question is that the current CA states that they are the 'assignee' of Chase Manhattan Bank, but according to my credit report, Chase Manhattan charged off/sold to another lender in 2005. ???

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Have you contacted your ex to find out if they are being harassed as well. Since CA SOL is 4 years and this debt is well beyond that, they may not be but I would contact the ex to make sure you are on the same page. As far as them being an Assignee of Chase, that would be the correct terminology since when thye purchased the debt, they were assigned all rights to collect, accrue interest, etc....

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I appreciate everyone's input on this. I just emailed the ex to find out what, if anything is going on at her end. If they got to her and were able to get her to pay anything does that mean I'm screwed, or do I still have a right to fight this in my state? I'm a little confused about this because the 'proposed' lawsuit only has my name on it.

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Ok, haven't heard from the ex yet, but today I get a verification letter from current CA, but boy did they screw up! (I think...and hope for court purposes)! The account number they gave me matches an old First USA Visa account opened in 1998 which became 180 days delinquent in January 2001, was charged off in July of 2002 and fell off my CR last Dec. ('07). Reported for 7 years, right? The letter lists the OC as being a Chase Manhattan Mastercard opened in 1998, but in actuality was purchased by them in 2004. (They don't know I have an old credit report from 2004.) The balance due listed in the 'verification letter' is a different $ amount than the amount of the 'proposed judgment' I mentioned in my previous post. So, what are they doing? Are they really screwing up or are they trying to pull a fast one on me that I'm not getting at this point? Any thoughts?

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I believe First USA credit cards were "acquired" by Chase Manhattan because we had one that was. I don't remember when, but maybe that's where the 2004 date comes in?

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