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Just received a letter from collector regarding 6 yr old debt?
The letter I received was from Financial Recovery Services Inc listing the current creditor as Cavalry SPV I & the original creditor as Bank of America. The last date of payment was June of 2009 & the date of charge off was January of 2010.

They are asking for a settlement, essentially. They stated in the letter that unless I contact them within 30 days, they will assume the debt is valid. The balance is for just over $1200.

I have actually seen this on my credit report earlier this year & my wife has been working hard to repair my credit so we can buy a home someday. My score is currently listed at 620 on credit karma. I don't actually see this particular collections agency on my report now, but I imagine that it's still on Experian since they tend to have things the others don't report & still affecting my FICO.

I am not sure how to proceed. Is there a good chance this debt will be sold when it was charged off so many years ago? I'm surprised I'm being contacted at this point, so close to when it might have fallen off. I also am not seeing it at all right now on my report anyway.

I can't afford to reset the clock on this debt but I also don't know if it will be resold. I would really like to get in a situation where we can qualify for a mortgage & get my wife & kids out of a two bedroom apartment.

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Couple of things... A debt can be sold and resold many times over, the debt owner don't always contact the responsible party right away and or report it to Credit Bureaus... Second, you mentioned the "reset the clock"? the reportable period for collection/charge-offs is 7 1/2 years from the Date Of First Delinquency, it's does NOT reset, ever! Regardless what you do or did not do, and it dose not go by any other dates. What might reset is the Statute Of Limitations of being sued, if you enter an firm repayment agreements with debt owner and didn't following thru with it, that can be consider breaking a brand new contract.

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Do an online for Statute of Limitations for Collections and see what it is for your state, since it varies.  If the SOL has expired, they can't collect and you need to tell them so.

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