Posted on August 6, 2009 at 9:24 am I am disputing the amount. I haven't paid on this in over 3 years. No one didn't bothered me until now. It is saying it is charged off as bad debt. I don't understand it either, It says 0 balance., then  the date 07 then next to that it says update then the full amount that is over 6.000.00. It also says it was purchased by this 3rd party debt collector.

Posted on August 6, 2009 at 9:28 am It sounds like your debt was in fact charged off (sine you hadn't paid on it they would have been reporting it as past due and charged it off around the 6 month delinquency stage) and that you owe at this time roughly $6 K. If it is with a junk debt buyer, and you have any money available you may want to consider settling the account. These junk debt buyers purchse the debts for very cheap, so often it is fairly easy to get a really low settlement.

Posted on August 6, 2009 at 9:29 am Right- and if you think the amount that you owe is too high- keep in mind that interest and late fees would have accrued over that period of time- so what you owe is definitely going to be more than it was several years ago.

Posted on August 6, 2009 at 9:34 am Thank-you both for the advice, by the way I went to court today & filed my answer, I made sure to let them know I am collect or proof free. I asked for proof for a credit card application with my signature on it, monthly bill statements, documents with my name on it, signed credit card disclosure papers. They sent a copy to the lawyers. I got a court date also. Now. we we see if they show up. I made sure to go so I would  not lose by default.

Posted on August 6, 2009 at 9:39 am That is good if you filed an answer- no default judgment. Be prepared though, unless you can prove that you are not liable for the debt- that a judgment may still be entered against you. If you are judgment proof- then the creditor won't be able to execute said judgment, but you will still be liable for the debt. In the end it simply means their life will be harder in trying to collect from you- especially if you do not reach out to them and set up reasonable repayment terms.

Posted on August 6, 2009 at 9:44 am Thanks for the advice, but think I will be reaching out to a 3rd party debt collection agency. If they produce the documents I asked for, I still don't know if I will. I don't have any extra money. I live check to check. That's my only income, and it is small.

Posted on August 6, 2009 at 9:46 am They are the ones suing me, it is up to the plantiff to prove it is mine.

Posted on August 6, 2009 at 9:46 am I understand. If you have no way of satisfying the debt at this time, then you can at the very least gain comfort in the fact that if you are in fact judgment proof there will be no way for the creditor to execute the judgment once (and if) it has been obtained.

Posted on August 6, 2009 at 10:13 am That's true, my credit is already messed up. There need to be a law to stop these 3rd party debt buyers or collectors to stop buying debts for a dollar on the pennies knowing  people never did any business with them. Someone I knows said they buy up a bunch of debt at one time for dollars on the pennies. This is wrong. Then they make money off of people for more than what they paid. People who work, own property, have money in the bank are the ones they can go after. It is wrong. The original creditors should be the only ones who can do that. If your original creditors or their creditors who are 2nd party collectors can't do it, 3rd party debt collectors who most of time are out of state should not be allowed to do this. It needs to stop.

Posted on August 6, 2009 at 11:17 am Well true- but it is a business- and if you can't pay back your debts over time then they have to do something to try and collect. The problem is the original creditor by law has to write the debt off (charge off) to the IRS after 180 days past due. Once the debt is charged off, the account is no longer an asset to their books so it makes more sense to turn it over to a third party. And yes, debt buyers will purchase portfolios of debt (sometimes up to thousands of accounts at once) for pennies on the dollar. It allows the original creditor to make at least something on a debt it is clear they may never collect on. Hang in there, I know it is frustrating.