03-29-2014 09:14 PM
I owe 2400 on a credit card which defaulted and there's a court judgment for it, so I don't think it can be erased, even though the original debt has been close to 7 years. The case has been in judgment for six years. When the original notice for the court case was delivered, my roommate accepted it but I did not find out about it until after the date had past, although I don't have any evidence to back this up.
I paid the lawyers 100$ a few months ago, and that is the only payment I've ever made.
I borrowed the money to make a full payment from my family. I've told the lawyers that I can only pay 100$ a month. They stated that they would knock off 15% if I could pay in full.
My question is should I pay it off in full to save the 15% or put the money in a secured credit card, and pay off the debt 100-300 per month with the secured credit card? My long term goals are to put a down payment on a house and be able to buy a car. My short term goal is to fix my current car or sell it and get a scooter, since my job doesn't require it anymore. My reports are 580, 600, and ~600.
The original unpaid debt was 400$. The court case was for 1100$, which has now grown with interest for the past six years. Will it "fall off" at seven years?
03-30-2014 01:50 AM
What "falls off" are individual adverse items reported under the account at various times that depend on the item reported.
Any monthly delinquencies can no longer show in your CR aftr 7 years from their dates of occurence.
If the creditor did a charge-off at any time, it will become excluded from your credit report after 7 years plus 180 days from the DOFD on the account.
The judgment must become excluded after 7 years from date of entry of the judgment.
The OC account itself does not become excluded or deleted.
When the judgment becomes excluded from your credit report, it sill has its own period of enforceability, whiich is usually ten years, and can be extended.
Credit report exclusion has no impact on continued enforceability of the judgment.
As long as the judgment is enforceable, the judgment creditor could go back to the court, show that you are not meeting the order to pay, and request the court to order terms of payment, such as garnishement of pay.
If you enter into an agreed payment plan with them, then as long as you comply with that agreement, they would have no basis for asking the court to order additional terms of immediate payment. You apparently have no current payment agreement with them. They might agree to terms that include no further accrual of interest, and set fixed monthly payments that, when completed, would be considered full satisfaction of the debt.
Otherwise, using a CC to pay will shift the debt over to that card. What are the interest rates on the debt under collection and of the CC?
If you can pay now or obtain an agreed payment plan with no further interest accrual, that would be my suggested route.