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I have 3 charged off credit cards from when I was young and dumb. Two of those are past SOL and are scheduled to fall off my CR this year. The other one (LVNV Funding) is within SOL until November 2015. On Friday I received a court summons with a court date in February for that 1 account that is still within SOL. I am able to pay it, and I plan to settle rather than going to court and getting a judgement on my record. What is my best plan? Just call and pay the full amount? What effect does that have on my credit? They have been reporting regularly, so would it just show as a paid collection? Does the legal record go away if we settle before court? I knew this could happen but am pretty surprised they waited this long...I figured it they hadn't bugged me about it by this point, they wouldn't do anything in the last year. Plus it's only $695. Ugh....was hoping to get away with this one, but no such luck.
If its a legimitate debt and you have the money to pay it, just pay it. They will likely get a summary judgement if you show up in court and refuse to make a payment plan with the creditor. They are unlikely to settle for less at this point because they have now incurred court filing costs ... but you can certainly try.
They amount it says I owe is correct- the amount charged off plus their $75 filing fee. I am fine with paying it- just concerned about the effect it will have on my credit report and my legal record. Is there a right and wrong way to go about this?
It wouldn't hurt to call the creditors seeking judgement (especially if they are a collection agency... It doesn't hurt to negotiate) and ask if you PIF will they delete it completely from your credit reports. Tell them a story as why you didn't pay it and that you are trying to repair your credit and scores and if they're not going to remove it completely then you will have to suck it up and make payments.
@Copperlady41 wrote:It wouldn't hurt to call the creditors seeking judgement (especially if they are a collection agency... It doesn't hurt to negotiate) and ask if you PIF will they delete it completely from your credit reports. Tell them a story as why you didn't pay it and that you are trying to repair your credit and scores and if they're not going to remove it completely then you will have to suck it up and make payments.
+1
That's exactlly what I did. Called the CA/lawyer before the court date. I didnt even have to negotiate, they offered me a settlement amount. When I asked "if they would PFD", they agreed to delete.
...suggest you get the PFD in writing before you write a check ...plenty of forum reports of paying CAs who fail to follow through on oral promises.