I have a lot of debt from a divorce - What should I do?

5 Answers

Andy, debt collections is not just about collecting debt, it's a form of investment.  Some agencies buy bulk debt from large banks for pennies on the dollar and try to collect as much money as possible.  Most people just settle and pay because they're scared...don't be, FIGHT!  Regarding SOL, forget it as a tool to help you stop creditors.  There are many restrictions regarding SOL that should be listed in your original agreements and from my research, 3 years isn't nearly enough, some are as long as 15 years.  Furthermore, it also depends on the home state (not just yours but the bank) listed on the original agreement.  But you can still be taken to court even if the SOL has expired.  AND WHATEVER YOU DO, UNDER NO CIRCUMSTANCES, DO NOT ADMIT YOU OWE THE DEBT OR ARE WILLING TO PAY THE DEBT!  The SOL actually stops if you do this and can be used against you in court.  Debt Collectors record all phone calls, so admit nothing, agree to nothing, but don't say you refuse to pay either.


When you get a written notice from a debt collector, send a DV letter WITHIN 30 DAYS and keep all correspondence as a record.  They have no time limit to comply with your DV letter so there isn't much you can do, but they can't try and collect if you send the letter within 30 days.  However, if after 6 months they don't reply send them a nice "fuck you" letter and ask them to remove all comments from your credit report.  If you don't hear from them, that means they can't comply and it's not worth their time and effort to continue.  They'll probably sell your debt to another scumbag collector and you'll have to do it all over again.  I've been doing it for 3 years with 5 accounts and 9 collection agencies...I had an expensive divorce that ruined me financially.

I did do that, using the templates you have here I sent them to each creditor. They did write back verifying I owe XX amount. The weird part is one collection place called me a month a go. I told them I would settle two accounts for a certain amount. They wouldn\'t agree, I hung up. I then got an offer from Amex, I took it paid it. Thinking this would \'wake\' up the others but no luck. I guess at this point I just wait? But it isn\'t fixing my credit waiting. People twell me to wait it will cause each collection place to make a better deal. Others tell me to try to call them. Im a bit lost on this for what to do.

If you really owe money to the collection agencies, then they would not remove your name from the credit report unless you pay them off. Send a written notice to the collection agencies and ask them to validate the debt. They may send you a debt validation letter after a few days.

I am living in New York. I tried call and using the templates on the site wrote to each one in Dec 2010. Most I heard from a lot just proving I signed for the cards. Can I write to them asking for them to remove them from my credit report? Would that wake them up? Or best thing is to wait?

What state are you in? Check whether or not all your debts have crossed the SOL period. If they have crossed the SOL period, then they can\'t legally sue you for the payment of debts. Since they are not returning your call, then I guess you have to wait. You can do one thing though. You can call your original creditors and inform them that you want to settle the debts directly with them. Once you settle the debts with your original creditors, ask them to update the account status on your credit report.

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