Questions and Answers About Debt and Debt Collection Companies

by Steven on August 8, 2012

Question and Answers

Q. Is it a good idea to file chapter 7 bankruptcy if your credit is to far beyond repair, and you are only 27 years old and how will bankruptcy affect my future?

A. I only tell people what I would personally do. If I was in your situation I would add up all the debt that I owe, after you have that amount add up all your income, then add up all your monthly expenses such as rent, car payment, and other payments and debt you’re still paying on.

Once you have that amount, see if you have any extra money to pay down your debt. If you don’t see if you cut your expenses if you’ll have extra money to pay down your debt.

If you do put together a plan to pay off the smallest debt to the largest debt. As you pay off the smaller debt use the extra money to pay extra on the next smallest debt.

If you’ve had some of your debt(s) purchased by debt collection companies you should challenge the debt and if they are validated you can negotiate a discounted amount to pay it off.

I’ve designed a free software to help individuals and families do this. Please visit my website at its 100% FREE!

Q. How long can a debt collection company come after me for a judgment that they have purchased?

A. A judgment can be collected for up to 20 years but the holder of the debt must re-affirm the debt every 10 years. If they fail to they cannot collect the debt legally.

Now I must say that some judges might disregard the law and attempt to let the debt collector collect on the debt even if they didn’t re-affirm the debt by the deadline.

Remember debt collectors buy judgment debts at a discount usually pennies on the dollar. So they have a bunch of room to negotiate.

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