I need a simple answer

Anonymous · ‎06-27-2008

I filled a bankruptcy 4 years 9 months ago. I also have 3 collections dating back to 2003. I have been told that I should just leave them alone and wait until the 7 year mark and they will fall off. Is this true? My credit has been good since 2004. Do I need to do anything about this old bad credit? My score is 574 (ahhh). When do I even have a chance to raise my score?

Anonymous · ‎06-27-2008

@Anonymous wrote:
I filled a bankruptcy 4 years 9 months ago. I also have 3 collections dating back to 2003. I have been told that I should just leave them alone and wait until the 7 year mark and they will fall off. Is this true? My credit has been good since 2004. Do I need to do anything about this old bad credit? My score is 574 (ahhh). When do I even have a chance to raise my score?

Okay, what KIND of BK did you file? AFAIK, if you discharge your debts in BK, ALL of your debts prior to filing should have been included (unless you reaffirmed them), whether or not they were listed on your matrix/schedule (though you may want to look into having them added if they weren't).

Next, what KIND of credit do you have? CCs? Installment loans? What are the balances and what are the limits?

I think my point is that your score should be above 574 (I would think) if your BK was 4 years ago, and the collection date back to '03. Especially if you have credit now and are in good standing.

Also, did you get your score HERE? Or at another website (like TrueCredit.com)? If you obtained your score elsewhere, it's not a "true score," it's a FAKO. The score banks, lenders, creditors, et al, go by is HERE at myFICO.com.

And as anyone (and EVERYONE) here will tell you, you can raise your score NOW!!

For the old collections, if unpaid, see if you can PFD'em (send them a letter asking them to delete the TL from your CRs in exchange for payment). If paid, send GW (goodwill) letters asking them to please remove the lates, delete the TL altogether, etc.

HTH!! Good luck!!

Anonymous · ‎06-27-2008

The answer is that you can start raising your scores anytime you want to...using the tactics I outline here in my slideshow on recovering from credit disasters:

http://www.allaboutthebenjamins.org/howcanmyscoreimprove.html

The bottom line is you have to dilute the BAD credit with GOOD credit going forward.

Anonymous · ‎06-27-2008

If your collections are unpaid, I don't think anyone on here would advise you to ignore them and leave them unpaid, but Wonderin is right that you need to try to get "pay for deletion" letters written.

Anonymous · ‎06-27-2008

@Anonymous wrote:
If your collections are unpaid, I don't think anyone on here would advise you to ignore them and leave them unpaid, but Wonderin is right that you need to try to get "pay for deletion" letters written.

W-e-e-e-l-l-l, technically, the OP's collections SHOULD have been included in his (?) BK. Unless they were originally reaffirmed (can't quite get the dates straight in my head!).

So technically, the OP's no longer responsible for them and he can easily get out of paying them with a letter stating that they were discharged in BK and sending the CA a copy of his Discharge Order. Technically.

But if it helps his credit to pay them off (rather than stand under the BK umbrella) for deletion, and he can DO it, by all means!! But if he's filed BK AFTER the debt was incurred and BEFORE paying the debt off, the debts have been discharged and the CA can't legally collect on them ... but of course, as per BK law, the OP can pay those debts if he chooses.

OP: If they won't allow you to pay for delete, I'd leave'em alone (or pester them until they cave in). They can't legally make you pay them, so really, while they can show on your CRs, they have no real teeth.