Waiting out SOL vs. Pursuing settlement

Mar 062011
 

I’ve really been trying to educate myself as I begin taking steps to repair my credit, but I keep coming to the same basic dilemma. I can see why it would make sense to wait out the SOL before contacting CAs and then negotiate for PFD, if you choose to settle at all, but the risk of being sued scares me to death. I’m reading these horror stories of people having funds taken out of their bank accounts, having everything but a little over $200/wk garnished, etc., and that would be even more devastating than the settlement offers I can’t afford.  

As best I can figure, the SOL will run on all of my debts in approximately 210 days, which doesn’t sound like that long, but when you’re looking over your shoulder waiting for a CA to come after you and destroy your life, it feels like an eternity.

Sometimes when I get advice here — which I appreciate very much — people seem so confident in suggesting I do nothing at this point, and I keep wondering why no one seems half as worried about being sued as I am. I’ll admit, it’s my nature to worry, probably excessively, but am I wrong here?

I’ve only settled a few very small accounts so far, mostly $50-100 medical debts and things of that nature, and one CA (and all but one refused to delete), and part of me wonders if there’s any point in trying to make the sacrifices to settle these accounts at all or at least for now.

Any way to measure your risk of being sued? I have some very large accounts weighing heavily on my mind (10-18k w/ the crazy interest and penalties) and keeping me up at night.

As always, any advice is appreciate. Thanks for your time.

Ramifications of Debt Settlement

Feb 172011
 

I just entered into a non profit accredited debt management/credit counseling program and they took all my credit cards,got the interest rates lowered and wrapped up into one payment a month, at which they will be paid off in 5 years.  This obviously seems like the best thing, however, it is a hefty payment every month and my husband and I work on commission so there is no guarantee that we will be able to continue this for 5 years–only hope to…

 

Upon entering into the program, all but two c/c were current.  However, the two that weren’t current  were 6 months behind and about to charge off so the credit card company recently offered me a debt settlement of .30 on the dollar.  This is tempting since I would save about $19,000.  This would also make my debt management payment for the remainder cards a lot easier to handle for the next five years.

 

Does anyone know the ramifications of a debt settlement?  I am getting mixed opinions.  Some say I should definitely take the settlement offer since my credit has already taken the biggest hit–(being six months behind) and that my credit would actually improve a little since the debt to income ratio would improve.  They are looking at it  as…  I am going to be on debt management program for the other cards for five years and that will show on credit as a third party helping, which is like a soft bankruptcy and creditors look at it as you are in trouble!  They said credit will not drastically improve till I complete the program and cards are paid off in full anyway.They said by then, the settlement won’t effect me.

 

Others say, the settlement will effect me for 7-10 years and that creditors won’t want to lend me money for this time period since  I settled and didn’t pay in full.  I know using a debt settlement company is a BIG no no since they charge you, and keep your money in a separate acct for months or even years till your creditors get paid.  However, this would be a settlement with the bank and be paid all within 3 months. I do have to make up my mind very soon as the offer will be off the table since I am starting to make payments with debt management 

 

I also am aware that I would have to pay taxes on the money I saved so I will be consulting my accountant about this soon. Depending on how that will affect me, that may make my decision…

 

I just want to know if I choose the settlement over the debt management for the two late cards vs.. Keeping all the cards on debt management for 5 years how that will compare and effect me in the end.  Any advise would be great!

Need Advice on Vacating a Judgement or Negotiating PFD

Dec 212010
 

Here’s the background…

I received a summons to appear in court in 2008.  The atty representing the CA is also a CA (go figure).  I spoke with the atty/CA (Dominion Law Associates) representing Midland Funding LLC at court arbitration.  I told the atty that I didn’t owe Midland a dime and that there should be a contract or payment or something on file verifying that I indeed at least did business with Midland.  I think a few years prior I owed a utility company in another state and believe they may have sold my account to Midland and Midland in turn hired a law office which also does collections as well, hence the law suit.  The court date was set for a month later, but I did not appear in court because in all honesty it slipped my mind (not an excuse, just the truth).  Fast forward to 2010 (going into 2011)…I have this judgement against me and of course it on my CR.  I’ve gone through several files and I’m pretty sure that this may be a utility bill although the amount is well over double what I should have owed the utility company.  Should I try vacating the judgement since A) I never owed the CA anything and the agreement would have been with the utility company, so the burden should lie there.  Or B) Try negotiating for exactly what I owe or close to it and try to get a PFD and have the CA vacate once I uphold my end of the deal.  Should I send a DV letter to Midland or Midland’s legal representative?  I remember during arbitration that the atty didn’t have much of a file, but she also wouldn’t let me see anything either.  I think I also placed a security deposit, so I’m wondering if I can’t vacate the judgement and my only other option is to actually pay the CA, if the security deposit can count toward the debt?  Any advice would be greatly appreciated.

Need Help on Increase Credit Score in the next 6 months

Oct 102010
 

I’m 27 a single mom of one and going through a pending divorce (already signed papers, just waiting on the gavel hit from the judge – got about a month and a half to go).  Anyway, I am a Therapist, making about 30k a year and a doctorate student.  About 3 years ago, I had magnificent credit around 680 and 675.  At the age of 23-24, that was great to me, anyway.  My X-husband couldn’t apply for credit for cash, his credit was terrible.  See I wasn’t educated about credit at all (even in my younger years), until I started working for a lending/finance institution and then I began to really get myself together.

 

My X was elbow high in debt and all the things (well most things, I wasn’t a total idiot) had to be in my mind for us to even get a decent apartment.  Well fast forward to 2010, we separated for the 3rd and last time in our 5 years of marriage and I was done with him.  My credit did take some jabs.  From a 675 from Equifax down to 577 and TU from 680 down to 630 (thought that was kinda odd).  

 

I took over my car note because I’m driving it and I am the most the responsible when it comes down to paying bills. I’m pretty on-time when it comes to paying that note, I never get 30-days behind.   I paid off 1 charged off credit card collection back in March 2010 and in the midst of paying back a collection acct from an apt where my X and I had to break our lease from an apt we had and he got laid off about 2 years ago, that’s about $2600 (I was a stay at home mom at the time).  I have about 2 other debts, one I’m paying off next week and one other I’m going to start paying off, next month.  

 

My big debt is that $2600 debt, I can’t get an apt because of it.  So I’m bunking with my parents now, until I can get it paid and away from my report.  I don’t want ANY MORE credit cards.  If I pay these collections off, will my score rise to a point I can trade in my car? or get an apt??  Like by April or May next year????  I’m tired of living with my parents, I don’t mind them, but I’m old enough to be on my own and to raise my daughter alone without outside guidance (ugh!).   But I’m sacrificing sooooo much right now, because I have no extra money.  I don’t know how in the world I’m going to do Christmas.  This may be a very short filled Christmas for my baby girl, because I want to think long-term and not short term

 

AND IM NOT GETTING ANY CHILD SUPPORT FROM HER DAD BECAUSE HE REFUSES TO PAY ME ANYTHING…(the court hasn’t awarded me anything yet).  

 

HOW CAN I RAISE MY SCORES IN THIS AMOUNT OF TIME!!!???? right now i’m at TU = 630 and EQ = 577  I have no idea about EXPERIAN.

Private Student Loans Collections Actions

Sep 082010
 

Here is my deal…. I am being pursued for some private student loans that defaulted and have gone to collections.  The total adjusted amount is about $30k, but the principal is about $20k.  After talks with this collector, he got down to $12,500 …. I cannot do that, and I told him. 

 

I made him a counter offer of $8,000 for a settlement, and he flat out refused, then said he is making notes in my file, confirmed my address and said that he will stop phone contact.  I assume that this is the point he will send a judement.  

 

I am bankrupt, unemployed and have no assets. 

 

Is there any way he will come back and accept that $8,000?  How should I proceed?  I’m not sure what they can demand from me in court, considering my situation.  I think $8,000 was a pretty legit offer being that its about 35% of the principal on a defaulted bad loan.  They probably bought it for pennies on the dollar. 

 

anything to ease my mind would be great. 

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I need a 680 by march of 2011

Sep 012010
 

i currently have a mortgage that will have 12 months perfect payment history next march. last derog. was a 90 in feb 2010. i have one open installment loan for a truck. one cc showing on all three reports(currently high utilization, waiting for this months update to the cra’s). ive also been added as an au on 2 cards but they havent showed up on all three reports yet, just experian, and just one of the cards. i also applied and was accepted for a bbrz mc that isnt showing up yet.

 

i have 3 closed auto loans all perfect history. 4 closed credit accounts all charged off back in 2007, paid in full. 4 small med collections that refuse to pfd, 2 are from 2007, 1 from 2008, 1 from 2009.

 

i have two inquiries on each credit report within the last year. equifax shows a total of 6 but 5 of the 6 are from my credit union for the auto loan that is active. i had to reapply several times because i changed my mind and didnt take the loans because i didnt find a vehicle i wanted.

 

i also have one public record. a judgement from one of the cc’s from 4/2008. also listed as paid.

 

my question is, do I have any chance of making it to a 680?

 

 

US Department of Education – STUDENT LOAN

Aug 092010
 

In another post, I expressed how crappy I feel.  I just got a 60 day late on my student loan, it literally slipped my mind.  How much success if any has anyone had getting a late deleted?  I just came out of rehabilitation with these guys and I’m hoping they’ll work with me. 

 

I called and got the address, wrote a long letter w/ a copy of their entry to my credit report.  Has ANYONE had any luck with them?

 

Thank You!

 

BTW, it was a 40 point drop on my FICO from ONE 60 day late!!!!!

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Deleting a collection

Jul 052010
 

I just wrote a “pay for delete” agreement for the only collection on my report.  I figured it was worth a shot.  It’s a medical debt that completely slipped my mind.  It’s only $90 so I’m attempting to get an agreement that the CA delete the collection from my credit report in exchange for full payment. 

 

Has anyone been successful with one of these?  Any advice would be appreciated.

It’s a huge gigantic mess and i really need advice.

Jun 022010
 

In short, my husband had a credit card with his mom, when he turned 18. He forgot about the card and never was big on getting credit. His dad used the credit card, rang up I’m guessing 15k in debt. It screwed up his credit. The situation got worse. He has been getting his paychecks garnished for over 2months….he gets paid weekly and every week they take out $216. He has no idea he was ever taken to court, never seen any credit card statements, never got any letters nothing. His dad “says” he hasn’t seen anything for his mom, since he is a co applicant on the card. I was speechless and didn’t think of how to ask any questions. I plan on calling tomorrow morning to ask how long it’s been in the hands of the law firm, where they sent the court papers, when the court date was,..my mind is a mess. We really need another car and I fear we won’t be able to and we so badly need it.

 

Is there any other questions I should ask? How do we the garnishments to stop…………is there a way out?

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