Almost ready to start- need to understand a few things

[sharizap]

Sort of a longish post- sorry in advance!

Ok, so I've been reading everything I can get my hands on and doing some preliminary legwork. (I have all of our CRs except for one, which we'll have in a few days. I didn't do the notebook- did it on a spreadsheet instead, but we have all the info in one place and organized.) I'm just about ready to get started. I just need to sort out a few things first- figure out what the best way to approach everything will be.

During a recent visit, my dh & I were telling his mother about our efforts to begin to repair our credit. My MIL promptly responded by telling us that she had some money for us from an inheritance that she'd give us so we can get some of the things cleared up. Now, it's not a huge amount, and certainly not unlimited, and the original idea was to use the money towards a down payment on the house that we're trying to buy. But it will help a lot to get some of the back issues cleared, and hopefully, maybe still have some left over for the house. I hope. The thing is, from what I read here, just throwing money at old debt isn't really the way to clear or improve credit scores, and I want to make every move as effective as possible.

So here's where we stand. Both our CRs contain a similar mix of items:

Medical Bills: Most are with CAs, however when I initially called some of them (before finding this site and learning that you shouldn't do that) I was told that a few of them were returned to the OCs, though not all. There were a few small amounts- $15, 25 & 50 range, that I just paid. There are a couple of more sizeable amounts, from $700-1200. During the initial phone calls I was offered settlement amounts on most of those, but haven't responded as yet.

CC COs: Almost all of these are with CAs, with one exception- one of mine appears to still be with the OC. One of his has a judgement which is being aggressively pursued. (I posted on this one earlier) I haven't contacted any of these CAs or OCs yet.

Utilities: This is a mixed bag- some lates, a couple of COs- one with a CA, a couple of old Comcast items that I intend to investigate- not sure if they're for equipment that they say wasn't returned or what- and a Sprint account with Calvary. Again, some of these I have already contacted by phone, and a couple are paid.

Oh, and one unique item on mine:

NYS Tax Lien: This is something I didn't even know about till I pulled my report. It only shows on my TU for some reason. It's around $2400, from 1999. I think it's from when I had my business, and when I moved back to PA from NY the communication between my ex and I was less than effective; I didn't get important things like notices on taxes due. I've been doing some research on this and I'm stumped. I can't seem to find info on SOL for NY state taxes (which means there may not be one). I'm concerned that if I call them and try to do an offer in compromise or payment arrangement that it will start getting reported on the other CRAs. It's almost tempting to just keep a low profile and hope they don't notice me, but I know that's not going to work and I'll have to figure this out before I can get a mortgage. I'm not 100% sure what this amount is even, exactly, for, but I'm afraid that if I contact them that it will negate any SOL that does/might exist. Really kind of stumped on that one.

There's also my car loan which got behind a couple of years ago, but I've been making regular payments on for the past two (though still 120 behind). I sent a check to bring it current, and plan to send a GW to the company to hopefully clear the negs from the report. It's with a small credit union that I've been a member of since childhood (as has most of the rest of my family) so I think I have a good shot at that one.

We do have a valid "sob story," I broke my leg 2 years ago- had surgery, was off work, bla bla bla- eventually had to look for another job, really took a hit on the whole ordeal. (outside sales is a rough gig- if you're not in front of your customers somebody else is.) Then my husband had major back surgery followed by a serious antibiotic resistant staph infection- couldn't work for months, home care nurses, rehab, etc etc. In addition to the out-of-pocket medical bills, everything else got behind after these two events.

So I'm not sure what to do first, or how this is really supposed to work. The majority of the accounts are old, but not out of SOL. (I checked.) Just at a glance, I know that most of them are ours/valid- those that I'm not sure of I will DV first. (obviously.) But what do I do with the rest? I can DV them, but what then? If I can't deal with the OC, it seems my only option is the CA- which is where most of the accounts are held. I know I can get settlement deals with them, which is, frankly, appealing since the money available ISN'T unlimited and obviously I need it to go as far as it can. Should I be looking for ways to get these items removed without paying them? I didn't start this by looking for ways to get out of paying, but as I said, the further I can stretch the $ the better. There won't be enough to pay everything. (when I added it up, the total owed is roughly $20k.) Or should I be trying to negotiate terms so that they get reported differently or not at all? Originally I thought I'd have to just get settlements and pay them, but I've read here that the last thing you want is a paid collection on your report! Or a paid/settled. So what do I do? What should I be trying to do?

Oh, another thing- I noticed on his CR that one of the CC/COs has been making regular inquiries on his account for the past year or so. Like once every quarter. Does this look like they might be getting ready to sue? Or is that routine practice? I think this particular account is still with the OC.

Also- on some of the medical stuff, there are 2 agencies reporting the same amount. (the account was with one CA, went back to the OC, then was sent to a different CA and both are reporting.) Is this legal?

Sorry for the lengthy post, and TIA so much for any help you can offer!

[MadinKS]

First of all, welcome to CIC. You've found a great source for answers to all your questions. I see that you've been using the abbrev.'s, but did you read the primer? If not, it's here: http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=263069

This will answer alot of the questions you have about the "process".

What is the timeframe for getting the house? If you have time, take your time.

NYS Tax Lien: This is something I didn't even know about till I pulled my report. It only shows on my TU for some reason. It's around $2400, from 1999.It's almost tempting to just keep a low profile and hope they don't notice me, but I know that's not going to work and I'll have to figure this out before I can get a mortgage. I'm not 100% sure what this amount is even, exactly, for, but I'm afraid that if I contact them that it will negate any SOL that does/might exist.

This is a must pay. You will not get a mortgage company to loan you money w/an unpaid tax lien on your CR. Plus, if they don't get their money, I think they can renew their lien. If you use your money to just one thing, it should be this. IMHO.

Also- on some of the medical stuff, there are 2 agencies reporting the same amount. (the account was with one CA, went back to the OC, then was sent to a different CA and both are reporting.) Is this legal?

The most current CA may hold a balance. The one that they got the TL from must report $0. If after you read the primer, you have more questions, just come on back and we'll see what we can do.

[sharizap]

I did read the primer (both of them- several times) but I'm still a little confused on just a couple of things. I realize that the post is sort of rambly, maybe I should break it down into a couple of new posts with more specific questions.

RE: the NYS Lien- yeah, I kind of thought that. I *might* be able to get a settlement or amnesty- checking into that. The lien will still stay on there for a while, though, correct? It'll just show paid/settled or somesuch? There's also my dh's judgement, which we're supposed to know more about later today. that's another one that is a must-pay. Those two will take a huge bite out of the available funds for paying off the rest of the accounts.

[sharizap]

The most current CA may hold a balance. The one that they got the TL from must report $0.

Both CAs are reporting the same amount- the first one never changed their report to $0. This is an issue to dispute, correct? (sorry if that's a "duh" question.) Now, can the original CA continue to report even though they don't own the debt any more or can I have that one removed?

[MadinKS]

You really need to get the actual statute that covers Tax Leins to get the skinny on how long they have to collect and amnesty, etc. I would talk to a lawyer about that. As far as the judgment on your husband's CR, yeah, you need to pay that asap. The judgment and tax lien reporting period doesn't even start until it's paid.

§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. §1681c]

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate

the report by more than seven years or until the governing statute of limitations

has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

So, even though it's taking a huge chunk of the money, that would be step 1. Who knows, maybe you'll get a bunch of deletes and you won't need all the money. You won't know until you start the journey.

Both CAs are reporting the same amount- the first one never changed their report to $0. This is an issue to dispute, correct?

Yes, most definitely.