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When Old Creditors File or Threaten a Lawsuit

Serving Families Throughout Mobile

Consult with an attorney who practices in the area of bankruptcy and consumer law. It is possible that the debt is too old to collect on, particularly if the Plaintiff who filed suit is a debt buyer such as Midland Funding, Portfolio Associates, Calvary SPV ( or any number of affiliates), LVNV Funding etc. These investment firms buy up huge portfolios of bad debts and comb through them using soft credit checks and decide which ones they will file suit on. Some don't even check and go for as many default judgments as they possibly can, which extends a state statute of limitations even longer. One technique they deploy is to call you to get you to pay a tiny amount on the debt. Do NOT do that, because it resets the time period for your state's statute of limitations, even if you pay 1 penny. These debts can be discharged easily in bankruptcy, or if you do not qualify for Ch 7 bankruptcy where they are 100% wiped out, they can be dealt with in Ch 13 and paid a small amount in most cases, always at 0% interest. Always talk to a bankruptcy attorney in your area.

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