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Member
HomeownerWannabe
Posts: 15
Registered: ‎11-23-2012

Am I doomed?

Hey, 

 

I've been reading and researching for awhile. I've been planning on starting this task come January but I figure why not start today. Long story short when I turned 18 I thought I could get everything on credit working a min wage job and eventually learned that wasn't the case. Once I figured out my credit was bad I stopped caring and never bothered checking it. Fast forward 8 years. Now I have 2 young kids, and can't even get a secured credit card never mind a place for them to call home with a white picket fence :smileyhappy: Be warned my credit is BAD. I have submitted a couple of disputes and many things will be falling off soon. So here is what I've found:

 

Sallie Mae x2 $1121 and $1788 so $2909 180 days late on both.

 

Credit Bureau of Detroit is reporting a total of 10 times for a total of $530. An ex and I had a shared US Bank checking account and after I closed the account he continued writing checks on the account blah blah. From 2010.

 

IC Systems $178 2011 A daycare debt. I didn't just jump ship on a daycare debt to be cheap. They released a picture of my child in the local newspaper after I indicated not to on the photography waiver for good reason so I withdrew him and they charged me for an additional week and I blew it off and forgot. 

 

Verizon $580 From 2009 says Im on a payment plan....I have Verizon again since Jan of this year. Not sure what to make of that. 

 

Another Student Loan from 2008 which is now paid and showing as $0 but the status is collection/chargeoff.

 

DT Credit Co from 2005 for $10,644. Drivetime. It's a repossession. I'm confused by this one. I haven't paid on it or recognized it since early December of 2005. It defaulted in November of 2005 but it says reported 9/30/2012. Will this still fall off in a month?

 

United Accounts from 2011 a movie rental account for $122.

 

United Accounts from 2010 for an eviction and judgement for $1152

 

RJM from 2008 for $338 for a Target card

 

Natlcrsys from 2007 for $1985 for a school I later found out wasn't accredited :smileysad: (Do your homework, lesson learned).

 

NCO Financial from 5/2006 for $92 for an old power bill. 

 

LDC Collect from 3/2006 for $2939 get this, for a speeding ticket!

 

Medical for $1294 from 2009

 

I also have a Judgement from 01/04/2006 for $1404

 

So...I'm guessing just looking at this that I'd be better off filing for BK or is there actually a way out of this horrible pile of dung. I've managed to stay out of a ton of trouble in 2012 except my student loands which are now past due. I'm new at this so please be gentle and sorry this is so long. ANY and ALL help would be greatly appreciated.  

Starting Score: 497
Current Score: TU:534; EX 525; EQ 520
Goal Score: EQ 650
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Am I doomed?

Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

What Steps Do I Take - great for learning the repair process.

and Example letters - PFDs, GWs, DVs, etc.

 

SM - I'll let others post on that one per rehabbing and so forth, but if you are current now, send GW letters.

 

CB of Det - Send a DV. If they verify for each and you agree with the debt, then send one PFD for the total amount (or settle). If they agree in writing that they'll delete in exchange for a payment, then pay it and they'll delete.

 

IC Systems - DV then send a PFD if you agree to the debt.

 

Verizon - send a PFD. If you might disagree with the debt, then certainly call them and ask for statements, etc.

 

2008 SL - send a GW.

 

DT Credit Co - If this is the lender, send a PFD. If a CA, then send a DV followed by a PFD. Or wait it out. They can report for 7 to 7.5 years from the DOFD of the debt (when you first went late and never recovered). They are allowed to report monthly if they wanted to, but they can't report longer than those 7-7.5 yrs from DOFD (11/05 I'm guessing). Your CRs will have the est. drop off date for TU and EX, and DOFD for EQ.

 

United#1 - DV then PFD.

 

United#2 - You've aready been sued. If the collection reports only, send a PFD. If both a judgment and collection report, then know that some have had success in removing judgments by paying it and asking the plaintiff's attorney to ask the court to have it vacated and that often leads to a removal. You can always ask them to delete the collection at the same time.

 

RJM - they are easy to deal with. Send a PFD.

 

Natlcrsys - DV then PFD.

 

NCO - DV then PFD.

 

LDC - DV then PFD.

 

Medical - DV then PFD.

 

Judgment - again the same as the one above....pay it and ask the plaintiff's attorney if they can ask the court to vacate.

 

Disclaimer: Keep an eye on your SOL. Unless your statute of limitations for your state has expired, do not send any letters, make any calls, or do anything unless you have the $$$ set aside to pay in full if you had to. You can always settle in the future if you wanted to, but many OCs/CAs are sue happy and doing anything inside of SOL can get you sued. If SOL didn't expire or if you didn't have the $$$ to PIF if you had to, then wait it out.

 

Judging by the dates, in all likelihood, some of what you posted is beyond your state's SOL. In other words, you are safe for some. Filing a BK would only make things worse and some of these folks can't come after you anyway. Plus it won't make all of the accounts go away because it happened pre-BK and they'll set you back years from buying a home. I think with some effort and time, you can get rid of half of your list within 3 months. I bet you can get rid of all of it within a year. After you get rid of most, then aim for a secured card from somewhere and it'll be easier to obtain.

 

 

 

Member
HomeownerWannabe
Posts: 15
Registered: ‎11-23-2012

Re: Am I doomed?

[ Edited ]

Perfect. Thank you. Especially for the Abbreviations list. I was making up some crazy things while reading posts. As far as SOL is that the state debt SOL or based on how long they can report? Example AZ SOL on written contract is 6 years. So they can't sue after 6 years. Just read the answer to that one. Also once debt falls off is it completely gone from the CRA's? I realize these are stupid questions I just want to be sure I understand before I take any actions. Would it be silly to let these things start falling off? The repo is set to fall off in a week and the other 2006 stuff isn't too far off including the judgement. I just don't see the sense in offering to pay them $10k if it's going to disappear in a week. I was thinking of starting with 2011 and doing PFD's and working my way down the list to older items. I feel like im drowning. Yikes. Anyway, thank you for her help and suggestions. Looks like i've got more research and reading to do!

Starting Score: 497
Current Score: TU:534; EX 525; EQ 520
Goal Score: EQ 650
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Am I doomed?


HomeownerWannabe wrote:

Perfect. Thank you. Especially for the Abbreviations list. I was making up some crazy things while reading posts. As far as SOL is that the state debt SOL or based on how long they can report? Example AZ SOL on written contract is 6 years. So they can't sue after 6 years. Just read the answer to that one. Also once debt falls off is it completely gone from the CRA's? I realize these are stupid questions I just want to be sure I understand before I take any actions. Would it be silly to let these things start falling off? The repo is set to fall off in a week and the other 2006 stuff isn't too far off including the judgement. I just don't see the sense in offering to pay them $10k if it's going to disappear in a week. I was thinking of starting with 2011 and doing PFD's and working my way down the list to older items. I feel like im drowning. Yikes. Anyway, thank you for her help and suggestions. Looks like i've got more research and reading to do!


On SOL, if it expires, they can still sue, but you can use SOL as a defense in court if it ever came to that. Just read up on your state's laws. In some states, paying on the debt can reset SOL. Acknowledging the debt can reset SOL. And even making a promise to pay can reset SOL. YMMV on your state of course. 

 

If a debt falls off due to being older than the 7-7.5 yrs as set by law (namely the FCRA), then it cannot reappear. It's gone forever. Now sometimes stuff falls off early or due to a dispute or something like that. Those can re-report, but once the 7-7.5 yrs hits it is gone forever.

 

You can certainly wait. The advantage of paying it that it falls off sooner and a debt gets satisfied. Even after SOL and CRTP expire, they can still collect forever. Paying or not paying is a personal judgment call.

 

The newer baddies hurt more. I also would start from the newest to the oldest based on budget.

 

 

Moderator
Shogun
Posts: 12,875
Registered: ‎04-15-2011

Re: Am I doomed?

Yes, once they fall off, they're off.  Problem is though, even though they go past the SOL and the CRTP and fall off your CR, the debt still exists.  This just means they can't get a judgement on you or post to your CR.  A CA can still come after you for the debt, and IME, they more bottom feeders of CAs seems to start coming around.

 

As far as the judgement, it can be renewed.  So it's a little different in the manner that it's recorded to the CRAs.  Usually they stay for 10 years.  So I wouldn't just go by when you think it will fall off.

_________________________________

I. Expiration of Arizona Judgments.

In Arizona, a judgment is initially effective for five (5) years from the date of its entry, and execution must be accomplished within that period.   A.R.S. Section 12-1551(B).  The five-year period is in the nature of a statute of limitations, however, and does not begin to run until the judgment can be enforced or sued upon, i.e., following a stay pending an appeal.  Groves v. Sorce, 161 Ariz. 619, 780 P.2d 452 (Div. 2 1989);Northstar Development Corp v. Wolfswinkel, 146 Ariz. 406, 706 P.2d 732 (Div. 2 1985).  Further, A.R.S. Section 12-1551(B) provides that execution or other process may not be issued upon a judgment after the expiration of five (5) years from the date of its entry unless the judgment is renewed.


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Member
HomeownerWannabe
Posts: 15
Registered: ‎11-23-2012

Re: Am I doomed?

Ok. Thanks again. One thing I haven't seen anywhere, is there a guideline for how long between clearing up your CR before working on building it? Is it best to wait a few months after clearing debt or simultaneous or does it make no difference? Shogun am I understanding that correctly, they would've had to renew the judgement within 5 years in order to keep it on my record? That would've been last year. I guess i'm really confused by that. I dont speak law well at all. I will try to dig into that and see if I can understand better.

I've been playing with the Fico Simulator and it's saying by making 3 months of payments on the student loans of $523 my Fico would jump between 571-611. Either end of that is nothing short of amazing. So that, i've decided will be my starting point. I will see if I can work in a GW with Sallie Mae and make the payments. That way those are closed and in good standing. Then I will start with the most recent baddies and see if I can get GW's or a few PFD and clear those out. By the time I get to the bottom the others should have reached the end of CRTP and I will at least have some breathing room to focus on rebuilding and addressing other things pertaining to the mess I've made.

It doesn't seem quite as overwhelming looking at it all now and reading some of the success stories here! Here's to home ownership by 2014!

Starting Score: 497
Current Score: TU:534; EX 525; EQ 520
Goal Score: EQ 650
Established Contributor
sphinx313
Posts: 567
Registered: ‎02-12-2011

Re: Am I doomed?

You're never doomed, if I learned anything from Shogun and Scott on these forums it's that you can bounce back from it you just have to START today and actually do something about it, it's not going to fix itself.



Starting Score: 532/564 10/21/12
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Valued Contributor
madmann26
Posts: 1,401
Registered: ‎08-30-2012

Re: Am I doomed?

Get to rebuilding now. There is no advantage in waiting.

Starting Score: EQ 511 TU 552 EX 545 8/29/2012
Current Score: TU 705|EQ 690|EXP 698 (FICO)
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Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012

Re: Am I doomed?

To answer your question about the FICO simulator:

 

  • I generally wouldn't trust the score simulator a ton, but it at least can give you an idea of how certain aspects are affecting you
  • You mentioned you were past due on your student loans in your original post, were you 30+ days past due? 
  • No matter how past due, if you are past due on the day you pull your scores, this will drag your score down like an anchor.
  • Getting current on all accounts, and preferably ahead of them, should be your #1 priority. You can't pay debt from 5 years ago until you're set on your current accounts
  • Showing no past due on your credit report can gain ~40-50 points, so the simulator, if in fact it was referring to a past due account, could be totally accurate, by getting current in your accounts and putting some time between the last delinquency
  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
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Member
HomeownerWannabe
Posts: 15
Registered: ‎11-23-2012

Re: Am I doomed?

Ya the sudent loans were 120+ past due. They are both current as of yesterday until February 2013. They were the only thing I fell behind on in 2012. I plan on paying them off completely in the next 6 months put I want to stretch out the payments so that it shows a good history of paying. I think that will boost my score more than just paying lump sum.

Starting Score: 497
Current Score: TU:534; EX 525; EQ 520
Goal Score: EQ 650

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