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New Member
Credit_rebuilder_noob
Posts: 6
Registered: ‎02-06-2013
0

Help with Debt Situation!!

Hi everyone!  I have been perusing these forums for a while and finally got to the nerve up to post my situation.  I am looking to get engaged and would like to buy a house with my new wife in the next two years.  

 

Here is are my current negative items:

 

Columiba Collections - Medical Bills- Judgement filed - currently making $100 payments and will be paid of in 6 months.

 

  • IRS Tax Lien - amount shows $56,147.  Current amount due is closer to 40K now.  Should be paid off in ~ 4 years.  Based on my research once I get the balance below 25K I can file to have the tax lien removed under the Fresh Start program.  I currently pay $600 a month on an installment agreement.
  • AMEX #1 - $1,548 - Charge off, due to fall off 6/1/2013
  • AMEX #2 - $24,416 - Charge off, due to fall off 12/1/2012
  • AMEX #3 - $18,401 - Charge off, due to fall off 12/1/2012
  • Portfolio Recovery - $43,648, Bank of America charge card, charged off, due to fall off 4/1/2014
  • 10 collection accounts for Professional Credit Services for Medical Bills, Total amount of ~1,800.  I think this and the Columbia collections accounts are for the same medical bills.  I sent in an inquiry and stated that but got a "Charges verified" by the three agencies.
  • Stellar recovery - Comcast Bill - $304
  • Karsaz & Associates - 2,191 Rent amount due to apartment complex from 2010

My Current credit scores are all around the 580 mark.

 

My short term plans are:  (In the next year)

  • Pay off the Columbia Collections and ask for a deletion.  There is a civil judgement related to this.  Can that be removed also?
  • Pay off Stella Recovery and ask for a deletion before paying balance.

I currently have the following credit lines:

Cap One #1-750, Cap One #2-750, Credit One-600, Target-200, JCP-500, Walmart-600, Orchard Bank-500, Rewardzone Mastercard-300, Old Navy-200, Merrick Bank-1,000, Dell - 1,500

 

I have about 3K in debt that will be paid off in about 6 months,

 

Questions

  1. How do I go about making sure that the medical bills I am paying to columbia collections are not the same ones on my report for Professional Credit Services.
  2. Is there any reason not to let the Amex and Portfolio recovery debt not just fall off in withing the next couple years?
  3. Any other advice given my situation?  Any tips and/or help would be appreciated!
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Help with Debt Situation!!


Credit_rebuilder_noob wrote:

Hi everyone!  I have been perusing these forums for a while and finally got to the nerve up to post my situation.  I am looking to get engaged and would like to buy a house with my new wife in the next two years.  

 

Here is are my current negative items:

 

Columiba Collections - Medical Bills- Judgement filed - currently making $100 payments and will be paid of in 6 months.

 After payment, ask if they will GW these off your CR.

  • IRS Tax Lien - amount shows $56,147.  Current amount due is closer to 40K now.  Should be paid off in ~ 4 years.  Based on my research once I get the balance below 25K I can file to have the tax lien removed under the Fresh Start program.  I currently pay $600 a month on an installment agreement.
  • Sounds like a good plan.
  • AMEX #1 - $1,548 - Charge off, due to fall off 6/1/2013
  • Can try for a PFD for a percentage, just to get rid of it for good and not show up with a bottom feeder.
  • AMEX #2 - $24,416 - Charge off, due to fall off 12/1/2012
  • AMEX #3 - $18,401 - Charge off, due to fall off 12/1/2012
  • These should have already fallen off, or are falling off now.  However the debt will not go away, it will just be a zombie debt.
  • Portfolio Recovery - $43,648, Bank of America charge card, charged off, due to fall off 4/1/2014
  • Same as Amex#1
  • 10 collection accounts for Professional Credit Services for Medical Bills, Total amount of ~1,800.  I think this and the Columbia collections accounts are for the same medical bills.  I sent in an inquiry and stated that but got a "Charges verified" by the three agencies.
  • You could send a DV and see what they send back.
  • Stellar recovery - Comcast Bill - $304
  • Karsaz & Associates - 2,191 Rent amount due to apartment complex from 2010
  • Send a PFD for these two.

My Current credit scores are all around the 580 mark.

 

My short term plans are:  (In the next year)

  • Pay off the Columbia Collections and ask for a deletion.  There is a civil judgement related to this.  Can that be removed also?
  • Pay off Stella Recovery and ask for a deletion before paying balance.

I currently have the following credit lines:

Cap One #1-750, Cap One #2-750, Credit One-600, Target-200, JCP-500, Walmart-600, Orchard Bank-500, Rewardzone Mastercard-300, Old Navy-200, Merrick Bank-1,000, Dell - 1,500

 

I have about 3K in debt that will be paid off in about 6 months,

 

Questions

  1. How do I go about making sure that the medical bills I am paying to columbia collections are not the same ones on my report for Professional Credit Services
  2. Is there any reason not to let the Amex and Portfolio recovery debt not just fall off in withing the next couple years?
  3. Any other advice given my situation?  Any tips and/or help would be appreciated!  

 

1.  As said above, I'd send a DV and see who they are collecting for.

2.  They tend to wind up with bottom feeders if not paid.  What's the SOL for your state on these?  Those are some very large amounts and they didn't go after you for judgements?

3.  Keep paying things down.  You've got a good plan started, and you have some good Revolving lines that will help.  It's just going to take a little time.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
New Member
Credit_rebuilder_noob
Posts: 6
Registered: ‎02-06-2013
0

Re: Help with Debt Situation!!

The amex ones are actually due to fall off in 2013 not 2012, just a typo.

 

Can the "Zombie debt" still be on the credit report once the SOL has run out?  The SOL where I am at is 6 years.

 

The only debtst that every came after with me in a court setting was a medical bill, Columbia collections, and the IRS.   I guess I got really lucky in that respect.  

 

A bad divorce that resulted in some very nasty tax bills kind of lead to all of this.  :smileysad:

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Help with Debt Situation!!

Ahh.. OK...

 

Yes, it can still be reported after the SOL has expired.  The CRTP is what regulates how long something can stay on your credit.  So these debts are past the SOL and still within the CRTP.  When they have passed both, they are considered Zombie debts.  They can't be sued for and they can't report on your CR.  Now, there is an exception, it's not a common thing, but just wanted you to know the exception to the rule.

 

If applying for a loan, such as a mortgage, in excess of $150,000 or a job in excess of $75,000 your full report can be pulled and that information could show.  Like I said, not a common thing, but can happen.  Other problem is if when applying if you are asked if you have any unpaid outstanding debts, you would have to say yes to be honest.

 

 


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
New Member
Credit_rebuilder_noob
Posts: 6
Registered: ‎02-06-2013
0

Re: Help with Debt Situation!!

Is it worth is for me to consider Bankruptcy?  If I wanted to buy a house 2 years from now (Over 175K) would I be in a better situation by declaring bankruptcy?

Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: Help with Debt Situation!!

I don't think it would benefit you at all to file BK.  These are about to fall off, you could probably settle them for small amounts and they would be considered done.  A BK will affect you for years to come.

 

Like I said, it's a possibility, but it is not the norm.  I have a job for more than that, and I bought a house for more than the amount, they didn't pull my complete file.  I just wanted you to know that it "IS" a possibility.

 


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

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