Hello,I was in United States on student visa during 2002-2003 and returned in 2004. During these years, I was short of money and ended up ha...

Question

Hello,

I was in United States on student visa during 2002-2003 and returned in 2004. During these years, I was short of money and ended up having about 4000$ debt on my credit cards. After that I traveled to USA on couple of occasions on business visa as well. Now, my company wants me to travel on work visa. My visa stamping is done and will be travelling soon. But I'm slightly worried about how to pay back my credit card bills dated 10 yrs back. I want to settle all my bills. My questions are as follows:

1) Shall I approach respective credit card companies to settle the dues? What are the other possible options like collection agencies?

2) I forgot to close the back account while returning which was with a credit union bank. How will that affect me? Should I contact the bank again to complete the account closure formalities after 10 years?

3) Will I have any problems in opening a new bank account?

4) How difficult it will be for me to rent an apartment?

These questions are eating my head every now and then and will really appreciate if they are answered.

Thanks in advance.

Answer

First, check your credit report. If it is not being reported on your credit report, there should be no problem. The statute of limitations for suit on a debt in Texas is 4 years. Debts may only be reported for 7 years on your credit report. Thus, you have no enforceable obligation to pay 10 year old debt. Credit card debt should not affect your ability to open a bank account, especially debt this old.