Recently, banks ended up paying $26 billion because they didn't follow the law, a massive class action lawsuit was successful in collecting some money. Despite all of that, they still haven't fixed it. That's right, after paying $26 billion because they were illegally foreclosing, they are still doing it. So, if you find yourself in trouble, fight it. It's never a good idea to try game the system, debt is debt and it's better for everyone if it's paid off but the banks kept poor records and often flouted the law to the point where it's an excellent idea to make that matter by fighting the bank at every step.
It got this bad because no one called them on it. Because it didn't matter for decades, they stopped bothering. That is a huge problem, and it's one of the ones that led to the problems that collapsed the real estate market.
The same thing is happening in credit card debt there are factual flaws in most records that lead to credit card collections suits. If they are trying to collect more than you think you owe, fight it in court. Ask for proof, since that debt can be thrown out entirely if they can't prove that you own it. Thanks for poor record keeping, sometimes they can't.
I'm not saying to do something stupid like assuming that a bank or credit card company won't keep track or will willingly break the law. These companies aren't stupid, and they aren't evil. These things happen because they are trying to keep track of altogether too much with poorly paid people who are improperly trained.
I am saying that you should protect yourself from problems. Make them spell out what exactly what they need from you, and establish both that you are responsible for the debt that they own. Who knows, you could get lucky. But the important bit is keeping folks honest. Our economy, and capitalism in general, only works when the rules are enforced by everyone.
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