Credit Card Debt In New York

I have lost my career, and have been trying to pay off these credit cards. The balances just keep going up even though I am not using the cards and I am very far behind. Is there any hope on the horizon

Resident state law is irrelevant in limitations as the contract is based on the laws of the state were the creditor is incorporated (usually Delaware). This usually means that in essence the creditor is limited to collections efforts as indicated by the FDCPA. Basically, they can attempt to collect the debt. Usually companies are limited as to how long they can carry the receivable on their own by FASB accounting regulations...so they will charge it off after 185 days. At that point a collection agency will likely buy the debt and start more hardcore collection efforts. In addition to ruined credit, you will be subject to collection calls (they can do it every hour with no contact, once a day with contact made), dunning letters, and asymmetrical collections (calling you at a grocery store or bowling alley). In any event, the creditor and/or the agency may file a lawsuit that could result in a lien or wage garnishment. That usually depends on the debt value. One thing that is becoming common is the debt value being reported to the IRS as income (I think its taxable at the 40% bracket, similar to bonus income). Where residing stare law comes in (in your case, NY) is the collection efforts themselves. You can issue what is known as a Cease and Desist Letter in NY that will prohibit the collection agency or creditor from calling you on the telephone. The downside is that they will then demand the debt upfront in a letter and the liklihood of a lawsuit is higher. In any event, collections are not fun for both the collector and debtor. Having spent time on both sides, I would advise through the course of the calls to speak with an intelligent sounding collector. Their job is to collect, but they are people too and if you are nice to them and sound like you want to work with them they will likely offer you a break. Most companies make these "breaks" available in the form of reduced interest, payments etc if you are willing to work with the collector. It may not be enough at the end of the day...but at least it can let the company know you are trying to work with them. More importantly...in a lawsuit situation it would appear like you were actively trying to find a solution. At the end of the day, the company wants to recoup their principal spent in a situation like yours...working with you is in their best interest in most cases. I hope this helps.

2006-05-27 22:15:05 by connie111

The Get Out of Debt series was part of a five-city tour stopping in Philadephia, New York City, Dallas and Chicago. Matthew Sapaula appears on the ...

if she defaulted on these credit cards? She alone is responsible for the cards. Can they put a lien on our house?

If she's part owner of the house then yes, they'll do their best to get their money.

2009-03-14 05:13:57 by jrthirdfourth

Price: $18.00

6 years - See http://www.creditinfocenter.com/rebuild/ statuteLimitations.shtml

The SoL starts 6 months after the last payment you made on the account. See http://www.creditinfocenter.com/rebuild/ statuteLimitations.shtml#2

2008-08-25 11:52:44 by bluefish

Price: $22.95

What is the Statute of Limitations for a Credit Card debt in New York State? I have been receiving this letter from a collection agency in regards to my JC Penney account that i had, God knows, how long ago it was. I know i paid the account off and closed it. Seems every 3 months i receive collection notices in the mail in regards to this. I've checked my credit reports and JC Penney account is not even on there as a collection account.

Better ask for debt validation. This way you can see if the debt is really yours.

2007-10-16 08:28:33 by SharpDr08

A debt collector from a place called Greystone Allience in NY he claimed to be a lawyer that Bank of America hired to take me to court and sue me, he never gave me a total amount owed, and I know he wasnt really a lawyer. The original credit card was $1000, I know that it will be more with interest and all. I heard somewhere that they cannot sue me if they are out of state, but I am unsure, also wouldnt it cost them more in the end to sue me over $1000? Lawyers alone would cost more than that. I dont own my own home, I only own 1 vehicle (only worth about $800) and I only owe a couple of payments before I own my van outright (its worth about $4000) can they sue me and take my vehicles away, or garnish my husbands wages (I am not working)

What a bunch of lame answers.

In the State of Texas wages can not be garnished for credit card debt period.

Since you don't own a home the only thing they could do if they took you to court would be attach your bank accounts and file liens on any vehicles you may have in your name, they can not take them but you can't sell them either without paying the judgment.

Considering the amount of money involved and the limited things they can actually do to you I would not be too worried it will cost them much, much more then they could ever collect to come after you.

And as far as your credit is concerned the damage has already been done so just wait it out until it falls off after 7-years.

2009-03-27 10:41:08 by Christine