Anonymous
05/13/2013 12:28
Subject: Re:Debt that's already gone to collections
If you own your home, the creditors can put a lien against your property.
Anonymous
05/13/2013 12:24
Subject: Re:Debt that's already gone to collections
Anonymous wrote:To be honest, your credit already took the hit, the company sold it and now a second company is trying to collect on the debt (bought at a discount rate from the original company). While you technically owe the money, there's really no point in painting it. Maybe just focus on the future and pay it forward some other time.
I agree with this. Unless your will be able to repay the debts in a shorter time than the 7-year clock or whatever. Focus more on saving since you'll not be able receive credit for a few more years yet.
And, honestly, I wouldn't even feel bad about it. Companies are bailed out all the time. You sound smart and your money would better utilized in the economy through other means than paying back old debts that will only many collection companies rich at this point. When you've regained your footing and created some wealth make a donation worthy cause in a few years.
Anonymous
05/13/2013 12:06
Subject: Debt that's already gone to collections
Anonymous wrote:I'm pretty sure the date of last activity is when the clock starts ticking. They don't get to reset the clock by selling the debt to a collection agency.
How many debts do you have in collections? If it is just this one, or if this is the "newest" one, I would probably just let it age off of your report.
Are you getting any collection notices? You could send a debt validation letter to each creditor just to see if they have all of the paperwork they need to collect on it. There are sample letters our there you can use. You need to send it registered mail, so that you get proof that they received it. If they don't have all of the necessary paperwork, they will have to drop it. They will sell it to another collection agency, but then you send the new agency another letter.
I have six debts in collections. I got collection notices for a couple of years, and still get collection calls (which I never answer after making that mistake a few times and seeing how aggressive they get).
Anonymous
05/13/2013 10:21
Subject: Debt that's already gone to collections
I'm pretty sure the date of last activity is when the clock starts ticking. They don't get to reset the clock by selling the debt to a collection agency.
How many debts do you have in collections? If it is just this one, or if this is the "newest" one, I would probably just let it age off of your report.
Are you getting any collection notices? You could send a debt validation letter to each creditor just to see if they have all of the paperwork they need to collect on it. There are sample letters our there you can use. You need to send it registered mail, so that you get proof that they received it. If they don't have all of the necessary paperwork, they will have to drop it. They will sell it to another collection agency, but then you send the new agency another letter.
How many debts do you have in collections? If it is just this one, or if this is the "newest" one, I would probably just let it age off of your report.
Are you getting any collection notices? You could send a debt validation letter to each creditor just to see if they have all of the paperwork they need to collect on it. There are sample letters our there you can use. You need to send it registered mail, so that you get proof that they received it. If they don't have all of the necessary paperwork, they will have to drop it. They will sell it to another collection agency, but then you send the new agency another letter.
Anonymous
05/13/2013 09:51
Subject: Re:Debt that's already gone to collections
Get a credit counselor. They will negotiate the debts down for you. These old debts have been bought for a fraction of their face value, and the collectors know they're unlkely to see anything on such an old debt, so will be open to settlement.
Anonymous
05/13/2013 09:47
Subject: Re:Debt that's already gone to collections
Anonymous wrote:If you want to do it yourself, you can. It can be hard to find a reputable company that won't take your money and manage to trash your credit even more.
Paying anything on the debts will restart the clock, so they will stay on your credit report and impact your score for 7 years or so from the last activity on the debt. You need to prioritize the debts if you want to pay them off. So list out all of the debts that you have in chronological order. Things that are all around the same time, sort by the size of the debt, smallest to largest.
Here is how I would prioritize:
1. Debts not in collections: Get yourself current on any debts that have not gone into collections yet.
2. Debts in collectsion: While you can't remove the fact that the debt went into collections, I beleive having paid it off will look better than continueing to let it languish until it times off your report.
a. Most recent first
b. Smallest to largest
I would only make payments on debts that have not gone into collections. If you can get yourself current on those and still have extra money after making your monthly payments I would save that money up until you can pay off one of the debts that has gone into collecions completely. If you try to negotiate for a smaller lump sum payment to settle the debt, make sure you have it in writing that they will consider the debt to be paid in full. You will owe taxes on the forgiven portion of the debt. As you work on the more recent debts, some of the older ones may age off of your report. I would not pay anything on those at all.
ALL my debts have gone to collections, except the money I owed my relatives, which I just paid them (they never sued for it or anything.) For the ones in collections, here's an example of the info I have:
Status as of Apr, 2013
Date opened [?] Feb, 2011
Date of last activity [?] Oct, 2008
I think that the debt was with another credit card and where it says "Date opened" is when it was sold to this collection agency. Is the clock ticking from the Date of last activity or Date opened? If it's Date of last activity I will wait for it to hit the 7 years without repaying because I've already waited more than 50% of the 7 years.
Anonymous
05/13/2013 09:39
Subject: Re:Debt that's already gone to collections
If you want to do it yourself, you can. It can be hard to find a reputable company that won't take your money and manage to trash your credit even more.
Paying anything on the debts will restart the clock, so they will stay on your credit report and impact your score for 7 years or so from the last activity on the debt. You need to prioritize the debts if you want to pay them off. So list out all of the debts that you have in chronological order. Things that are all around the same time, sort by the size of the debt, smallest to largest.
Here is how I would prioritize:
1. Debts not in collections: Get yourself current on any debts that have not gone into collections yet.
2. Debts in collectsion: While you can't remove the fact that the debt went into collections, I beleive having paid it off will look better than continueing to let it languish until it times off your report.
a. Most recent first
b. Smallest to largest
I would only make payments on debts that have not gone into collections. If you can get yourself current on those and still have extra money after making your monthly payments I would save that money up until you can pay off one of the debts that has gone into collecions completely. If you try to negotiate for a smaller lump sum payment to settle the debt, make sure you have it in writing that they will consider the debt to be paid in full. You will owe taxes on the forgiven portion of the debt. As you work on the more recent debts, some of the older ones may age off of your report. I would not pay anything on those at all.
Paying anything on the debts will restart the clock, so they will stay on your credit report and impact your score for 7 years or so from the last activity on the debt. You need to prioritize the debts if you want to pay them off. So list out all of the debts that you have in chronological order. Things that are all around the same time, sort by the size of the debt, smallest to largest.
Here is how I would prioritize:
1. Debts not in collections: Get yourself current on any debts that have not gone into collections yet.
2. Debts in collectsion: While you can't remove the fact that the debt went into collections, I beleive having paid it off will look better than continueing to let it languish until it times off your report.
a. Most recent first
b. Smallest to largest
I would only make payments on debts that have not gone into collections. If you can get yourself current on those and still have extra money after making your monthly payments I would save that money up until you can pay off one of the debts that has gone into collecions completely. If you try to negotiate for a smaller lump sum payment to settle the debt, make sure you have it in writing that they will consider the debt to be paid in full. You will owe taxes on the forgiven portion of the debt. As you work on the more recent debts, some of the older ones may age off of your report. I would not pay anything on those at all.
Anonymous
05/12/2013 12:33
Subject: Debt that's already gone to collections
Very very bad idea to restarted the payments. Essentially, you're restarting the clock of your Statue of Limitation.
Anonymous
05/11/2013 16:53
Subject: Debt that's already gone to collections
OP here. I signed up with MyFico and got my credit score. It's 625. OUCH.
Anonymous
05/11/2013 08:41
Subject: Debt that's already gone to collections
Definitely no on the credit counselor. Pay it back if it makes you feel better but it will not improve your score. Your credit report reflects your payment habits so whether you currently owe the debt or not doesn't change the fact that you did owe it. You can ask for what is called a pay for delete where you offer to pay it off in exchange for them deleting it from your credit file. I've had success with this in the past. really depends on the company. You could also try disputing. That works sometimes as well. If neither of those things work you'll just have to wait out the 7 years. When I repaired my credit this board was extremely helpful. http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit Go read as much as possible and you can post as well but chances are it's already been asked.
Anonymous
05/11/2013 07:35
Subject: Re:Debt that's already gone to collections
Agree on the credit counselor. Creditors don't always report things to credit reporting agencies. Reputable credit counselors can help you negotiate payment plans and/or a lower lump sum payment. Even though you are dealing with collections agencies, not all buy the debt - sometimes the original creditor retains control of the debt. In my experience (working in the collections industry), those where the original creditor retains some control are the easiest to work with.
Good luck and congratulations.
Good luck and congratulations.
Anonymous
05/11/2013 06:37
Subject: Debt that's already gone to collections
I am glad you are perfectly fine with paying what you owe. That is what you should do.. I can't imagine being comfortable with just not paying..feels like stealing to me.
Anonymous
05/10/2013 21:33
Subject: Debt that's already gone to collections
I would find the non-profit. You will get hassled about the debt for a long time otherwise, and they may well be able to negotiate a lower payback just so they get paid.
Anonymous
05/10/2013 21:10
Subject: Re:Debt that's already gone to collections
To be honest, your credit already took the hit, the company sold it and now a second company is trying to collect on the debt (bought at a discount rate from the original company). While you technically owe the money, there's really no point in painting it. Maybe just focus on the future and pay it forward some other time.
Anonymous
05/10/2013 15:00
Subject: Debt that's already gone to collections
While I was out of work for three years, I ran up a lot of debt that then went to various collection companies. It's now two years later and since I now have a financial cushion that could support me bare-bones style for a year, I feel ready to begin re-paying my debts from credit cards. I already paid back the people I owed money to (relatives).
But yesterday a coworker suggested:
A. It may be more beneficial to my credit score to just wait it out since it's already been, for some of the debt, four years or so.
B. That I should contest each debt because the collection companies only have 30 days to prove the debt, and if they don't comply within that time frame, I will no longer owe it.
C. I should hire a non-profit credit counseling company to handle these negotiations for me so I don't have to spend time on it, and they won't charge me (or will, but very minimally).
I am perfectly fine with paying back what I owe. Really. I'm not trying to get away with not paying back what I owe. I want to repair my credit, which before this, had been perfect (literally, perfect).
Suggestions? I already ordered and received my credit report in the mail.
But yesterday a coworker suggested:
A. It may be more beneficial to my credit score to just wait it out since it's already been, for some of the debt, four years or so.
B. That I should contest each debt because the collection companies only have 30 days to prove the debt, and if they don't comply within that time frame, I will no longer owe it.
C. I should hire a non-profit credit counseling company to handle these negotiations for me so I don't have to spend time on it, and they won't charge me (or will, but very minimally).
I am perfectly fine with paying back what I owe. Really. I'm not trying to get away with not paying back what I owe. I want to repair my credit, which before this, had been perfect (literally, perfect).
Suggestions? I already ordered and received my credit report in the mail.