Every CA is refusing PFD. Is it even worth paying?

hippychic823 · ‎07-23-2016

I feel like I keep asking the same thing over and over on here but I'm so confused and I'm really trying to do what is best for my credit situation. Long story short I have over 8k in collections, all CC debt. I've contacted all the OC's and they all say they can't work with me, that my accounts are no longer owned by them (even though 2 of them are still reporting my account as open and CO...or at least that what it looks like on my CR) so I called the CA's. PRA owns 3 of my accounts and absolutely refused PFD so I made payment arrangements with them. The other company is Northland and they wouldn't accept PFD either but they aren't even showing up on my CR. The last CA is called CSI, they also aren't showing up on my CR and they also won't accept PFD. These are all due to fall off in 2021. My understanding is that, unless they're removed from my report, paying them won't help my score. Other than being sued why pay? If my credit is still going to suck I'd rather take that cash I'd be paying them and put it into savings since I would have to be operating on a cash only basis until 2021 anyways. Pleeeaaasssse if anyone can help me I really need advise.

hippychic823 · ‎07-23-2016

I also have a 47k foreclosure that I was going to attempt to tackle after I paid off the collections but at this point I'm thinking it's best to cut my losses and file bk (I'd have to file Ch 13 I'm thinking), I feel like the effect of the bk on my score would be about the same as if I paid all the CA's off if the CA's won't PFD. I'm already sitting with a score in the freaking 400's, it really cant get much worse. I feel so lost right now and no clue where to go from here.

Anonymous · ‎07-23-2016

I'm not expert especailly with BK, but it does sounds like this could be your only option at this time. I heard theres a BK that after 2 years you can start applying for new credit and usually successful.

Good luck - your credit score doesnt change if any at all if you pay the CA and they dont delete, the status is the only thing that will change that it will say Paid in Full. To some creditors that's enough to give you a credit but most of them are all system generated that they all go by the score and not manual review.

Better have more of our experts pitch in on this.

Anonymous · ‎07-23-2016

A paid collection doesn't help simply by being paid, but it will stop updating and have less and less of an effect on your score over time. With a Chpt 13 BK, you are going to be paying off those debts anyway. Why add a BK on top?

Anonymous · ‎07-23-2016

OP, I would suggest you talk to a bankruptcy lawyer at this point about which options are the best for your situation.

If you can get a timeline for BK vs paying everything off and what each will cost you, you can get a better idea of what would be ideal for your future and what you can handle.

The important thing to remember right now is that you know you need to do something and that you are willing to put the work into getting it done. Best wishes on your journey.

Anonymous · ‎07-23-2016

@Anonymous wrote:
A paid collection doesn't help simply by being paid, but it will stop updating and have less and less of an effect on your score over time. With a Chpt 13 BK, you are going to be paying off those debts anyway. Why add a BK on top?

That depends on the OP's disposable income. Unsecured debt gets what they would normally get in a Chapter 7. The only thing the OP would have to pay for the most part 100% is secure debt.

Anonymous · ‎07-23-2016

Moreover, paying a collection not only stops updating but if they are paid and start aging, you may be able to obtain credit in the future.

Where if they are unpaid thus much lessor odds of being granted future credit.

I do agree with Lowkeyorca, speak to a few Lawyers and see what's in your best interest.

hippychic823 · ‎07-23-2016

I spoke with a BK lawyer briefly yesterday and, of course, he advised me to file and said I'd have to do a Ch13 because of my income. But, I worry he is only telling me file so he will have a case. I am willing to pay everything off. I want to pay everything because, ethically it's the right thing to do. However, it sucks to pay and not get an increase in score. My thoughts were that with bk I would be more likely to be able to rebuild with a fresh slate after discharge (which would be about 3 yrs) whereas if I paid the CA's and the baddies were still on my report and my score was still in the 400's I wouldn't be able to start the rebuild until they all fall off in 2021. But, I don't know if I'm necessary right to assume this, I've never been this low financially before and I have no idea of the best way to get back on my feet.

Anonymous · ‎07-23-2016

@hippychic823 wrote:
I spoke with a BK lawyer briefly yesterday and, of course, he advised me to file and said I'd have to do a Ch13 because of my income. But, I worry he is only telling me file so he will have a case. I am willing to pay everything off. I want to pay everything because, ethically it's the right thing to do. However, it sucks to pay and not get an increase in score. My thoughts were that with bk I would be more likely to be able to rebuild with a fresh slate after discharge (which would be about 3 yrs) whereas if I paid the CA's and the baddies were still on my report and my score was still in the 400's I wouldn't be able to start the rebuild until they all fall off in 2021. But, I don't know if I'm necessary right to assume this, I've never been this low financially before and I have no idea of the best way to get back on my feet.

If you do not believe BK is in your best interest, let's go through your debts.

List dofd's, who they are with, how much is owed.

What is your income? How much can you reasonable pay up front, and per month towards the debt while still maintaining your current responsibilities?

Anonymous · ‎07-23-2016

Your score will not stay in the 400s as your collections age. Plenty of people on here, including me, have open collections and mid 600 scores. You won't see an immediate score increase just from paying, but your should be ok in 3 years, if not sooner without bk.