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Lot's of bad debts but no legal action, teasing the tiger?


ndkblondie
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Hi all, I'm ready to jump in and start on our credit but I'm afraid of teasing the tiger. My husband and I almost filed bk in '08 but decided we would stick it out and try to clean it up ourselves instead. We now have a lot of charge offs and a lot of collections on our CRs. The problem is that some of the accounts are big, in the 30k range. No one is trying to sue us, so should I just suck it up and wait it out for the SOL?

I have a huge 5" notebook full of every collection letter I've received for every account, it's amazing how often they get sold. Three of them are with LVNV and one with Weltman Weinberg, I understand from my research here that those are the same companies under Sherman. There are a bunch of others, all names I recognize from this forum.

I'm in Cali so we are already 2 years into our 4 year SOL, 2 1/2 on some of the accounts.

Should I just go after the little accounts and hold off on the big ones or just go for it guns a blazing? Will the activity bring attention to my files and cause them to come after me?

What improvements can I make that won't cause trouble?

We fell from high 700's to 480, it's improved slightly to the 550 range now just due to time passing I guess. We are pretty frozen as you can imagine and I'm anxious to take control of this disaster and do what I can to clean it up and put this behind us.

Thank you in advance for all the support, I am grateful for everything I've learned already!

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Do you have any assets to protect? If not, then file a 7 and be done with it. By the time the SOL expires, you can have 18 months f post-discharge credit repair under your belt and be on your way to a 700+ FICO. And you can sleep at night and answer your phone again.

Or wait it out. But the chances of not being sued by at least one creditor on debts that large are not very good.

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I am trying to remod my house and they won't work with my while we are in bk so I can't file.

So lay low if I don't file bk, don't try to challenge these big collections?

I only have 4 CA's on my report but I have a lot of CO's, how much help would removing the CA's be anyway at this point.

My score is 576 Experian.

Can I start rebuilding now with a secured line of credit or will it be just a waste of time?

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I'm really back and forth on this. If we wait a year and a half the SOL will be passed and then I can go for it safely but when I research and read here on this amazing forum, I get really inspired and think I CAN DO THIS!!

I just don't have the experience to know how risky it is. If we do get sued, can we still settle for a lesser amount or are we in for the whole thing at that point? If the worst case scenario is that I get sued and I have to settle for pennies on the dollar, it might be worth it to shake the tree and see what falls off.

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Maybe this will help the experts:

These are only the collections appearing on the CR I have other collections that aren't on the CR as well.

Collection Consultants of California

Medical collection

5,110.00

SOL 2/12

Global Acceptance

for Chase Bank CO

31,385.00

SOL 2/12

LVNV Funding

for Citibank CO

37,439.00

SOL 2/12

LVNV Funding/Weltman Weinberg & Reis

for Lowes Account CO

7,490.00

SOL 2/12

Portfolio Recovery Associates

For GM credit card CO

1,506.00

SOL 2/12

Zenith Acquisition

for GE Money Bank CO

25,778.00

SOL 2/12

In addition, I have a CA that is not reporting but they are doing hard inquiries monthly for up to 6 times a month. Can this be construed as abuse?

My husband and I both lost our employment at the same time and it started an avalanche.

Thank you,

ndkblondie

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I'm no expert, but just putting in my $0.02.

Are the debts owned by the OC, or by a JDB? JDB suits are slightly easier to defend as they rarely have all the paperwork. Also, I think I've seen better settlements when dealing with the OC's than I have with JDBs. However, when you're talking pennies on the dollar -- it's not like it's really pennies. More like dimes or maybe quarters. You're unlikely to get away with 5%, but a lot of people seem to have luck in the 30-40% range (from posts I see here, not personal experience).

With something like 85K in debts, to settle that all out is still going to be a hefty chunk of change. Do you really have 20-30k to settle with these people?

Even up until trial, you can still settle with anyone suing you as long as they're willing to play. Knowing that you're in a serious financial hole, some creditors might be more willing to accept settlement if they don't think they're going to get the whole amount. Sometimes you can play that against each other - tell them all you're looking to settle but only have enough money for 1 account and see how low you can get them. Of course, it could cause the others who lose that battle to sue you just to get judgement, but it's all really a crap shoot on knowing what they will do and when.

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A settlement with OCs seems like it would be a waste of money because it's not going to improve my score so I think I will only settle if I'm sued and am forced to. The game of chicken really comes down to the question of will disputing and asking for validation wake up these accounts and encourage them to come after me. Do the CA's I am dealing with have an overall record of suing or disappearing when confronted...

What is the likelihood that they will ALL sue? That would definitely break the bank but if I were forced to settle with one big one, I could manage that.

I don't know if accounts are owned by the OC's or not. They are all charged off but the collection statements don't say whether the CA owns it or not. How do I find out?

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I would not be surprised at all if LVNV/et al come after you if stir any activity.

As far as settling, it seems it would be better to try before actually getting sued, although I certainly never had any luck reasoning with them regardless. I don't know how vulnerable you are to collection after judgment but I hope you have made preparations as much as you can.

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