Best course of action following disability-caused credit destruction--closed vs open accounts, etc.

[Candikane]

Hi, I had an almost-700 credit score drop to low 500 following a disabling head injury. I had to fight and ultimately sue for disability payments, so I had 0 income for quite awhile. I'd like to fix it all up.

I show 6 accounts closed, 4 as collection/charge off and the other 2 say nothing (and no bal). One was an auto loan that I did complete, the other a Cap One card that had a balance I could no longer pay. I believe that one is also listed as open with a bal under a collection agency.

I have 5 open accounts: 3 with Portfolio, 1 with Midland, 1 with Americollect (medical), and my currently open (not yet due) student loans. I also have 1 of those 3 Portfolio accounts showing as a judgement

I know I won't be able to get my score great with the judgement, and the Portfolio accounts are high balances that will take time to pay off for sure. The Midland and Americollect are both do-able, but shouldn't I do a PFD?

Is it legal to show both closed from the original creditor and open from the CA who now has it? I'm getting hit twice from the same accounts?

ETA: I just recently opened a secured Cap One card to help start to rebuild my score as well.

Any info and help is GREATLY appreciated!!

[Anonymous]

@Candikane.

I'm sorry for all that you have been through.  Hope your are doing better now.

Unfortunately, you can have both the CO and the CA listed on your reports.  The COs should report zero balances and status as closed, while the CAs should report a balance and open status.  PFD is always the best option.  If you are able to take care of the collections, you can always try to GW the OCs to see if they would remove the tradelines given your medical issues; its always worth a try.  The worst they can do is say "no".  The damage has already been done to your credit reports.

Good luck.

[Anonymous]

Talk to a lawyer about filing a motion for relief of the judgement. 

I would also ask for good will, along with medical information you're willing to provide them with, for restoration of your credit.

I just spent an hour researching your issue and now am just angry that there's nothing I could find to help you. 

[Candikane]

Thanks for the replies!! I'll definitely give PFD a shot, then pay and GW if they fail.

Any contact info for Target (TD) and Kohls (CapOne)? I'm planning to attack those first since they both show from OCs closed WITH a bal Also, should I send a standard PFD or a letter explaining my struggles?

[Candikane]

Aw, thanks for researching for me!! It sucks horribly being judged by credit that I didn't actually mismanage... and even more so by the fact that I had paid for my short and long term disability benefits out of every paycheck, and then got screwed on receiving them, which is what trashed my credit. Unreal.

[Candikane]

Midland (closed AND open from OC w/0 bal) settled at 40% and says they delete (it's over 2 years old), per their new policy.

Americollect (closed) being pulled and deleted on GW from OC!!

Target (closed with a bal) waiting on reply to a sent GW/PIF

This leaves 3 open with Portfolio, 1 of which also shows as closed from OC (walmart) AND as a judgement , 1 closed with a bal from OC (kohls) who rejected my GW/PIF, and the closed Target.

Next steps? I've read that Portfolio is pretty much impossible... not sure I have many moves left then :/

[gdale6]

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@Candikane wrote:

Midland (closed AND open from OC w/0 bal) settled at 40% and says they delete (it's over 2 years old), per their new policy.

Americollect (closed) being pulled and deleted on GW from OC!!

Target (closed with a bal) waiting on reply to a sent GW/PIF

This leaves 3 open with Portfolio, 1 of which also shows as closed from OC (walmart) AND as a judgement , 1 closed with a bal from OC (kohls) who rejected my GW/PIF, and the closed Target.

Next steps? I've read that Portfolio is pretty much impossible... not sure I have many moves left then :/

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The judgment you want to negotiate and pay ASAP they continue to occur interest charges as set by state law and they can be renewed pretty much forever. Its also possible they will come after your bank account and wages with a garnishment. The other 2 items with Portfolio I would settle as well even if you cant get them to do the PFD its the monthly updating that keeps your Fico score from recovering.

[Candikane]

Well thankfully I don't think they can go after my bank account nor garnish since I'm on ss disability and live below the poverty line. The monthly updating sucks though I can't afford to pay them, even on a settlement,  but I can look into a payment plan?

[gdale6]

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@Candikane wrote:

Well thankfully I don't think they can go after my bank account nor garnish since I'm on ss disability and live below the poverty line. The monthly updating sucks though I can't afford to pay them, even on a settlement,  but I can look into a payment plan?

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You can protect up to 2 months worth of Social Sec Benes in your bank account any excess and any other monies deposited can be subject to a writ of execution should they go that route. Yes you can try to settle on a payment plan if you can actually afford it.

[Candikane]

I sent a pfd via email to Target's CEO a few weeks ago, no response. I've read to wait about a month before trying again.... would I email again, or send snail mail to the address on my CR?