im so glad i found this site! 
hope someone can please help me and give me some advice. Two years ago, we stopped paying all 12 credit card bills, just coudlnt do it anymore. and the plan was to file for bankruptcy. Believe it or not, the lawyer we paid for the BK, was so lazy and kept putting off our BK case! i guess we also just ignored it because creditors stopped calling. but eveytime i did call the attorney for status on our BK case, he would just say he was going to do it soon, never did!
So, two years later, i had enough of that attorney, complained and got my money back. No BK was ever filed. Now, having moved to another house and having a horrible credit report, i expereienced the result of a bad credit report. was so hard to find a rental home, with such bad credit, had to put a lot more money as downpayment because of my credit history. We were hoping to borrow some money from a friend....and pay those credit cards off. With a one time pay off for less of the amount of each card. So far, for example BofA will combine my 4 credit accounts with them, and reduced the pay off from 18grand to 10grand. No less, they wont take less. even after i said please or i may have to file for bankruptcy. they said that was the best they could do. Also BofA (more like the collector/charge off company) said he would even report it as Paid in Full. not Settled in full. which is good. another charge off company with a mastercard, brought my pay off down from 9grand to about 4+grand. but...she will NOT report it as Paid in Full, but Settled in Full, i asked for a PIF....she said to really pay the Full amount, then she will report it as that. if not, then pay settlement and reported as settlement.
anyway, it's been two years. should i try to fix my credit? the thing is, that i've heard that the credit report will improve but not as much if the creditors report pay offs as 'settled" i've heard paid in full statuses are better. and im thinking i wont be able to buy a house even with good credit later, because i cant qualify on my own, i'm divorced now and my boyfriends credit is going down now too because of his ex wife not paying credit card bills under both their names. i dont know if it's worth trying to fix my credit if its only for the look of my credit report. Unless i need to buy a car later....but my car is fine and just finished paying it off last year. dont know what to do 
help pls, thank you so much!!!!!
Thank you for all the great information. i'm learning a lot from all the research. Only, i dont know what CL and OC are (credit limit and Original creditor?) i'm in California. I thought that paying off delinquent accounts, even for less, that it would totally clear up your credit report 100% and done, clean credit. Seeing as to how it's so unsure...i almost don t feel like it will help my credit score if i dish out all this money to pay them.
@repaircredit wrote:Thank you for all the great information. i'm learning a lot from all the research. Only, i dont know what CL and OC are
CL=Credit Line OC=Original Creditor 
If they are within your states SOL there could be a chance the creditor or if a CA is reporting the debt they could sue you within that time frame. If you want to settle the acccounts there could be a possibility they could issue you a 1099-C if the remaining balance is $600 or more. You would need to include that as income on your taxes. If they do issue you a 1099-C the IRS will have that information already as they will report it to them.
Me personally I always like having no unpaid debt following me around. When I first signed up to myFICO back in Oct 2012 Moderator Guiness, MOD Shogun, RobertEG, llecs and a few others have helped me along the way. I started with 12 collections and 2 charge offs. It took me 10 months to get everything cleared on my credit reports. Either by paying in full and suing a few CA's=Collection Agencies along the way. The only big baddie I have is a Public Record (Bankruptcy chapter 7) which falls off in March 2014.
I had a starting score of 495 and now I currently sit at 745 Fico scores. I was up to 795 but I was naughty and opened a few new cards 
which affected my AAoA and I currently have a 18% util. However my scores will rebound fairly quickly once my util % drops and let all my cards age and staying on time with my payments.
You can do it. Ask questions. You can PM if you want I will be more glad to help. myFICO rewards me with Milkduds and Milk.
DaBears
@repaircredit wrote:Thank you for all the great information. i'm learning a lot from all the research. Only, i dont know what CL and OC are
Yep, credit limit and original creditor. Look in my signature for common abbreviations.
No, unfortunately that isn't the way it works. If it was we would all have excellent credit
Paying off delinquent accounts will help you in the long run whether it helps your score or not. There will no longer be unpaid debt hovering over your head. Unpaid debt does not go away and they can attempt to collect forever.
It also keeps judgments from being brought against you and those being on your CR also.
Credit rebuilding is a marathon, not a sprint (using someone elses phrase). It can take a long time but it is very rewarding. Along with the frustrations it can bring.
The blemishes will eventually come off your CR and it will improve your score.
If they are outside of your SOL, which I believe is 4 years, you can start by sending DV letters to the CAs If they validate, offer them a settlement for deleting.
All of this can be done and it may not happen the first time you ask but, it can be accomplished. You will need patience and perseverance. And sometimes thick skin.