DanRepair44

Dealing With Collections/Accs Past Due, Repair Help?

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Hello, quite some time ago I got in an accident, and as a result I ended up losing my job and any chance to earn a living for the time being. I am still not yet fully recovered, but I am very close thankfully. However, I haven't had a job since the accident, and I think it's been about 2 years or more since I made my last payment. Could be a bit less as I don't have everything right here with me. I had right around 10 accounts in total, and two of them were over 5,000$ while the rest were anywhere from 500-1500 or so.

 

I spoke with someone at one point, but since I was unable to really do anything about them I stopped talking all together. So eventualy all of my accounts were with collections, and remain so today. Just recently I did get one letter from a law firm, but they said they were acting as the collection agency as well.

 

Anyways, since I am getting better now, not as depressed, and thinking about my next move with work or  possibly going back to school I wanted to take care of this mess once and for all so I can have it out of my way. I was always a little proud of having decent credit, and paying my bills on time so it's tough for me to be in this situation especially given that it's not all my fault. So I am just looking for a little guidence here if possible. I have read and researched quite a bit on the topic.

 

A few questions I had really quick:

 

1) Is it true that 7 years after the last payment made on an account that account is wiped off your credit report completley?

 

2) With Bankrupcy would it be 7 years from this date until my credit was able to come back or seven years from the last payment? Is it true you can only declare bankrupcy ONCE in your life?

 

 

Now the reason I ask question #1 is because since I have no job, and I have no income would it be smarter to just let it go for a few more years since I am almost half way through now anyways? Does the account really drop off of your account as if nothing happened, and then you are able to build credit again? Without a bankrupcy on your record?

 

As for #2 which is just a normal bankrupcy question, and whether or not you can declare just once in your life. Now since my accounts don't seem to be big enough for legal action I feel as if it may be just better to let the accounts sit inactive without a payment for a few more years. Seems like you get some of the perks of bankrupcy without having the bankrupcy go on your record? What keeps me away from this is if you can only declare this once in your life you never know what your future holds. Of course another problem would be that I would really prefer to have things cleared, and get back to normal even working to get my credit back. Anyone have any thoughts on this?

 

 

 

Since I have so many cards, and different collections now I am also worried about figuring out which collections REALLY goes withwhich card, and making sure I get them all taken care of. This has led me to wonder whether or not to look into some agencies where people are there to help, but the problem is in all my research it seems to me that pretty much every agency or helper out there is really just a "scam" in a way. Ends up costing you more money, and you really don't get your accounts dealt with.

 

 

I have a little bit of money to my name now, not much, but I also have someone close to me who is willing to let me borrow some money if I am able to work a few things out. So basically I am hoping for a way to make some type of payment on these accounts, and get them taken care of so I can then work on repairing my credit. Now I will be able to borrow a good amount of money which I would think would be enough to take care of the accounts, but I am needing to get a "Pay for DELETE" option from the accounts so I can start to get my credit back. I have a bunch of letters in the mail with settlement offers, and I would almost have enough to pay those settlements minus a little bit. I know they will accept far less than the settlement, but really I don't care about paying next to nothing more than I care about being able to get my credit back as soon as I can. Like I said it was always important to me, and there was no way I could know or avoid the accident. So paying somewhat close to the settlement is OK for me, but I just need to make sure about getting the PAY TO DELETE letter signed. Especially considering that is one of the only ways I can borrow the money as they do not think there is any point if I am not able to get my credit back.

 

 

So can anyone point me in the right direction? Can anyone help me out with this "pay to delete" option which is offered? Is there any legit companies out there who may be better equipped to deal with my situation, keep in mind I would research things thoroughly, and find out if there is the least bit of trouble so please no sketchy referrals :) .... Really I think I can take care of it on my own, and wouldn;t have all that much money to pay someone. Unless of course it would be a better chance to get the pay to delete and they can take care of all at once since I have so many accounts... Really though just looking for a little help and guidance here. 

 

Thanks so much, Dan

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1) Is it true that 7 years after the last payment made on an account that account is wiped off your credit report completley?

 

Yes.  It is actually a total of 7 years 6 months from the date of first default (when you missed a payment that a negative trade line may stay on your credit report.

 

Now the reason I ask question #1 is because since I have no job, and I have no income would it be smarter to just let it go for a few more years since I am almost half way through now anyways? Does the account really drop off of your account as if nothing happened, and then you are able to build credit again? Without a bankrupcy on your record?

 

Three years is a LONG time to live with negative debt reporting.  The SOL for lawsuits in NY is 6 years and while you may believe them to be small amounts there are junk debt buyers who will sue over a few hundred dollars.  You already have one law firm sniffing around.  

 

Yes, the accounts do drop off as if nothing happened.  You can start re-building credit sooner than when they drop off.  However, those you sill owe money will resurface like a cockroach that survived a nuclear holocaust trying to collect on those old bad debts.  It is best to not start credit repair until the SOL has expired for lawsuits unless you have significant cash reserves to pay off bills.  I would not start doing PFD until you determine you are not filing BK because you cannot pick and choose who to pay it could hurt your filing.

 

2) With Bankrupcy would it be 7 years from this date until my credit was able to come back or seven years from the last payment? Is it true you can only declare bankrupcy ONCE in your life?

 

No.  A bankruptcy case stays on your credit report for 10 years from the date you filed the case.  It is a myth that you can only file once in your life.  There are limits to how OFTEN you can file for BK.  My sister has filed twice in her life so far and if she keeps it up number three will happen soon.   

 

For a Chapter 7 where all debts are discharged you can file again after 8 years.

For a Chapter 13 where you make payments and then the rest is discharged you can refile after 2 years.

If you filed CH 13 and then need/want to file a CH7 you have to wait 4 years.

If you filed CH 7 and then need/want to file a CH 13 you have to wait 6 years.

 

You can file more than once so do not let that stop you from choosing this option if it is best for you.  Most if not all BK attorneys will do an initial consultation for free and answer all your questions about how the process works.

 

So can anyone point me in the right direction? Can anyone help me out with this "pay to delete" option which is offered? Is there any legit companies out there who may be better equipped to deal with my situation, keep in mind I would research things thoroughly, and find out if there is the least bit of trouble so please no sketchy referrals :-) .... Really I think I can take care of it on my own, and wouldn;t have all that much money to pay someone. Unless of course it would be a better chance to get the pay to delete and they can take care of all at once since I have so many accounts... Really though just looking for a little help and guidance here. 

 

Yes, start reading the threads on this site on re-building credit so you learn what to do and not do to.  DO NOT hire a credit repair firm or anyone who says they will "manage" your debt.  They will charge HUGE fees and do nothing.  You can do this yourself for free.  

 

The first thing you need to do is get copies of all 3 of your credit reports (by mail) from each of the three credit bureaus and see what is reporting and by whom.  You want to see if there are any federal laws they have violated which would give you leverage to force a PFD or to have them stop collections and delete in exchange for your not suing them.

 

Come back to this thread when you have your reports and post what is reporting, WHO is reporting it, and how much. (not the exact amount so that the creditors can't tell who you are if they see the thread) and then the experts here can help you with what to tackle and what to let sit. 

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If I might interject here…

 

Until or unless you have the financial ability to pay or settle these debts (i.e. you have an income, etc.), I see no reason for you to do anything at the moment.

 

With no income there is really nothing a creditor (or junk debt buyer/collection agency/attorney) can really “do” to you other than report negative tradelines on your credit reports. The tradelines are already there and, given your accident, you have a very good explanation for WHY they are there. Some of these creditors may sue you, eventually, but with no income they aren’t going to get much.

 

I know you want “good credit” but, while there are good reasons for having a favorable credit report I don’t see it as a real issue right now…respectfully, I would concentrate on getting well and doing what you need to do to make yourself employable/getting an income again. You absolutely don’t need to go into debt to anyone, MOST ESPECIALLY FROM A FRIEND just to pay off old debt. Borrowing money from a friend or family member will change your relationship with that person and could very well ruin that relationship regardless of good intentions.

 

You may decide, eventually, than bankruptcy is and appropriate action but why pull that trigger before you absolutely need to do so?  With no income right now I think bankruptcy would be premature.

 

I hope that helps.

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