September 25, 2018

Do You Want to Give Money You Don’t Owe to a Credit Card Company?

This is not a trick question.

I received this letter today from American Express regarding the balance owed by one of my Chapter 13 bankruptcy clients whose case was dismissed.  The letter acknowledges that because of the age of the debt, Amex cannot sue my former client, nor can they report the unpaid balance to the credit bureaus.  Yet they are giving him the opportunity to “settle” this debt for 45% of the balance.

Can you think of any reason why anyone would pay Amex anything on this stale account?  I can’t.  But I wonder how many people agree to make payments and possible waive the statute of limitations bar to collections.  If you get a letter with a notice that the debt is stale, don’t even think about making a payment.

About Jonathan

Jonathan Ginsberg represents honest, hardworking men and women in the Atlanta area who need personal bankruptcy protection. In practice for over 25 years, Jonathan teaches bankruptcy law and practice at legal continuing education seminars and he is a founding member of the Bankruptcy Law Network. Jonathan lives with his wife and children in Atlanta.

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