Credit Card Debt Letter

I need to know how to write a proper credit card debt forgiveness letter.
My mom passed away and there are no more funds in her Estate and the bank needs a letter of forgiveness.
All I can find on line are samples of letters for people who are still alive.

When I worked for a collection agency the process was a copy of the death certificate and if there was an estate the lawyers contact information

2009-10-06 10:46:22 by lynna1682

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My husband and I recently purchased a house. Right before our purchase we found out about a delinquent credit card. To make a long story short, it was a credit card that was in my husband's name that he was to use when he was in college that his mom was supposed to be paying for. My husband had no idea that there was a delinquency until we were notified by our lender. The account has been closed since 2002. It states on his credit report that the "account closed at consumers request, charged off account, bad debt; placed for collections; skip." We do not want to bother his Mom about this. After no communication with Discover, for 5 years, we have now received a letter from Northstar Location Services, a collection agency (not from Discover), for a settlement amount which is 40% of the debt. What should we do, contact Discover, deal with the collection agency, or something else? I realize everything needs to be in writing beforehand, but can anyone advise me on this at all?
I will check out your other posts, Studly, thanks...as far as my concern with it, it is mainly because of the recent contact with the collection agency now after so many years. We were still able to get the loan for our house, so I am not really concerned about that part of it. Since it "technically" wasn't our debt, but my mother in law's, the bank didn't really care. Actually the amount was pretty significant, $3000 with an offered settlement of $1200, which is why I'm extremely surprised that we were not contacted before about this. I believe the statute of limitation on credit cards is 3 years in our state. I know they can still take us to court over it but its probably unlikely since the statute of limitations has run out. I just don't want to settle on an amount and still have it show up on our credit history for another 7 years. I think this just may be a last ditch effort by the collection agency to get some money and I just want to make sure we make the right decision.

If it was a charge off that means the company tried to collect and wasn't able to so they wrote it off. This is just probably one last attempt to collect. I'd contact Discover and see if they sent this to the collection agency. 5 years is really too long for them to wait to send it to collections. That just sounds fishy to me. Like a private agency trying to collect, on a creditors charge offs.

2007-06-05 14:46:11 by Randa

Price: $6.85

I received a letter from a collection agency to pay an old credit card debt from 1999. I recently got my credit report this year and this debt did not show up on it, should I pay it? Will this affect my credit score eventually? What should I do?

A negative item is removed after 7 years so there is no way it will show up on your credit report as long as you don't do something like start to pay on it again. Also, with the exception of a couple of states, you are well beyond the Statute of Limitations for being able to legally claim the debt. Rhode Island is 10 years and Wyoming is 8 years for open ended accounts(which a credit card is considered). So if you are in one of those two states you may need to pay the debt.

After the SOL has expired there is nothing that says they can not continue to try and collect, but they have no legal grounds to make you pay. You can send them a certified letter to basically tell them you do not know what this debt is and they are not to contact you again. Do not admit to knowing about the debt or that you may still owe it.

Dear Sir/Madam

I received a letter dated <date> about a debt I supposedly owe. I do not know anything about this debt and do not want to be contacted about it from this point on.

<Account #>

<Your Name>

Sent it certified with return receipt. If this company does contact you again you can file suit for violation of the FDCRA in small claims court for $1,000. However, if another agency purchases the debt, you will have to do this again with the new one. As the letter only applies to that agency.

2007-05-14 19:19:23 by miguelin

Price: $29.97

i have received 4 letters from 4 different law firms from 4 different credit card companies threatening to sue me unless i pay off the debt in full that i owe them. well i am unemployed, have no money-no car-no house (i am staying with my sister) , no assets at all. i don't even have "a pot to you know what in". so i can't make payment arrangements or anything. i have about 5 other credit cards that i can't pay on as well. i need help. i am trying to get a job but there is nothing out there right now (i live in michigan). my family can't help me pay off debt anymore either. someone said i could get a judgement proof--what is that? i need help please.

You don't "get" a "judgment proof" but you may well BE "judgment proof."

Judgment proof simply means that getting a judgment against you is an exercise in futility as the creditor has no way to enforce that judgment. Since you have no assets or income at present you are essentially judgment proof at least for the moment. However once your circumstances improve then any judgment that a creditor secures now can be enforced their rights to recover what you owe. In most states judgments are enforceable for at least 10 years and as long as 20. They can be renewed multiple times in many states as well.

You are only truly judgment proof if you have nothing that can be attached by law and never will have anything that can be attached by law in the future. That generally applies to retirees since pensions cannot be touched to satisfy a judgment and a significant portion of the typical retiree's assets are also exempt from attachment.

In your case filing bankruptcy may be your best bet. This will clear the slate and get the creditors off of your back. Your credit rating is probably already in the pooper with lots of accounts in collections so bankruptcy won't hurt much there.

As often as not, the mere threat of bankruptcy can cause most creditors to call of the dogs and often write off the debt. It costs them less that way since they don't need to file the paperwork with the bankruptcy court. You may get a Form 1099-C for the canceled debt which makes it taxable income to your but there are ways of avoiding that hit if you are truly insolvent at the time of the cancellation of the debt.

2009-12-08 11:18:16 by kelli i

If you don't reply, you'll have a default judgment against you. Once they have a judgment, they can garnish your wages, go after your assets, bank accounts, vehicles, etc.

Your best bet at this point is to contact the creditor and try to work out some sort of arrangement to repay the debt. That would be much better for you then a judgment. If you can work something out with them, you may not end up in court. However, you may have let this go too far and they may not be too willing to work out much of a deal with you.

2007-03-09 15:33:13 by tracey d