topic Re: Need Advice! Please Help in Rebuilding Your Credit

Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 05:44:18 GMT

Where to start? When I was 20 (6 years ago) I got 4 credit cards and defaulted on all of them. I also incurred about 5 medical bills which I didn't have the cash to pay so they went to collections Two years ago I signed a lease with a roommate of two years and got stiffed with 2 months of their back rent. I came home one day to find they had moved out so I had to move out as the rent was due in two weeks and my account was already drained from paying their side for the past two months. I tried to work out things with the complex but ultimately I had to move back in with my parents and get my financials together.I cleaned the apartment, dropped the keys off in the lock box with a note. I never received an eviction notice although they could have placed one on the door after I left I have no clue. I did get a letter stating they won a judgement of $700 against me and my roommate which is far. I am finally financially in a place where I can afford to start paying some of the debts I have ( Medical Bills) My credit cards are falling off starting next year. I can say I have my reasons but the truth is I have been very irresponsible with my credit and finances. Below I have listed my credit report. Questions- Should I actually file for bankruptcy? My CC are falling off next year and I can settle hopefully for 50% of 3 of the medical bills ranging from 700 and below. I can't afford to pay the leasing agency until the next 3 to 4 years and would only be able to at 50% at that. I don't think I need to file but I don't know how much trouble I actually am in, you do. If I can settle with the medical bills as listed above at 50% and pay it will it help my credit? Probably self explained question but what does paying it help with? Does the payment status change? Does it go away from my credit report if I pay them? Can I have it erased once its paid or do I still have to wait the 7 years to have it fall off as well? If its marked as paid does that help on my credit report or is it the same as it was? If this was your mess what steps would you take to get start fixing this? I have heard of opening secured cc to help your credit... how does that work? How many points will that go make it go up?

I am working full time as a retail supervisor so my income is not high but I have learned how to save and would like to start fixing these things and eventually get a unsecured card. What kind of score do you need to get approved for a cc?One last question- Capitol One as listed below is listed as collection but so is portfolio they are reporting on the same debt. And both in collection? Thats two negative marks for the same debt. Eventually when I am done with school and gotten myself out of this mess with the right financial choices I'd like to own a home. I know this is a mess and for years I lived paycheck to paycheck. I have worked very hard to get myself where I have enough to start paying a little at a time. Any help is appreciated. Thank you for taking time out of your day to listen and offer any advice that you have.

Lauren

Credit Score of 548 - Equifax

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 05:45:01 GMT

CAPITAL ONE BANK USA NA

Date Opened:

04/28/2007

Responsibility:

Individual Account

Account Type:

Revolving Account

Loan Type:

CREDIT CARD

Date Updated:

05/06/2012

Payment Received:

Last Payment Made:

11/14/2007

Pay Status:

>Charged Off<

Terms:

Paid Monthly

Date Closed:

08/03/2008

ACCOUNT SOLD TO PORTFOLIO RECOVERIES ASSOCIATE

Estimated month and year that this item will be removed:

12/2014

CHASE/BANK ONE CARD SERV *

Date Opened:

04/24/2007

Responsibility:

Individual Account

Account Type:

Revolving Account

Loan Type:

CREDIT CARD

Balance:

Date Updated:

06/24/2009

Payment Received:

Last Payment Made:

08/17/2007

High Balance:

$1,442

Credit Limit:

$700

Pay Status:

>Charged Off<

Terms:

Paid Monthly

Date Closed:

11/21/2007

Date Paid:

08/17/2007

Remarks:

PURCHASED BY ANOTHER LENDER; TRANSFERRED TO ANOTHER OFFICE

Estimated month and year that this item will be removed:

08/2014

ESCALLATE INC

Placed for collection:

10/05/2011

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$459

Date Updated:

12/20/2011

Original Amount:

$459

Original Creditor:

MEDICAL- (Medical/Health Care)

Past Due:

>$459<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

05/2018

ESCALLATE INC *

Placed for collection:

06/15/2011

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$707

Date Updated:

08/29/2011

Original Amount:

$707

Original Creditor:

MEDICAL- (Medical/Health Care)

Past Due:

>$707<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

02/2018

HUNTER WARFIELD INC

Placed for collection:

11/04/2011

Responsibility:

Participant on Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$3,185

Date Updated:

02/02/2013

Original Amount:

$2,913

Original Creditor:

(Rental/Leasing)

Past Due:

>$3,185<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

08/2018

MEDICAL DATA SYSTEMS INC

Placed for collection:

08/06/2012

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$642

Date Updated:

10/15/2012

Original Amount:

$642

Original Creditor:

MEDICAL- (Medical/Health Care)

Past Due:

>$642<

Pay Status:

>In Collection<

Estimated month and year that this item will be removed:

05/2018

MEDICAL DATA SYSTEMS INC

Placed for collection:

04/06/2012

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$2,378

Date Updated:

06/15/2012

Original Amount:

$2,378

Original Creditor:

MEDICAL-C

Past Due:

>$2,378<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

02/2018

MIDLAND CREDIT MGMT INC

Placed for collection:

11/18/2008

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

FACTORING COMPANY ACCOUNT

Balance:

$1,699

Date Updated:

07/19/2010

Original Amount:

$1,699

Original Creditor:

CITIBANK DIAMOND PREFERRED FO

Past Due:

>$1,699<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

03/2014

NCO FINANCIAL

Placed for collection:

11/08/2010

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

COLLECTION AGENCY/ATTORNEY

Balance:

$97

Date Updated:

05/27/2012

Original Amount:

$97

Original Creditor:

PROGRESSIVE INSURANCE (Insurance)

Past Due:

>$97<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

08/2017

PORTFOLIO RECOVERY

Placed for collection:

04/27/2012

Responsibility:

Individual Account

Account Type:

Open Account

Loan Type:

FACTORING COMPANY ACCOUNT

Balance:

$699

Date Updated:

02/08/2013

Last Payment Made:

11/14/2007

Original Amount:

$699

Original Creditor:

CAPITAL ONE BANK USA N A

Past Due:

>$699<

Pay Status:

>In Collection<

Remarks:

>PLACED FOR COLLECTION<

Estimated month and year that this item will be removed:

12/2014

Re: Need Advice! Please Help

starry1 — Wed, 20 Feb 2013 06:23:47 GMT

That's about ten grand give or take. What's your annual income. If you got a settlement on most of these, how much could you reasonably pay in the next 2-3 years? You don't want to file for bk unless you truly have no other choice. I just got out of bk and it was horrible. It will continue to haunt you for many years.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 06:37:38 GMT

My salary is 27k a year its nothing. I live with a roommate (A good one) it's in her name. I have in total Checking about 700 Savings 2500. I have a car payment at $260 a month and insurance at 80. I want to pay the medical bills everything but the 2500 dollar one I think I can do. And the credit cards are dropping off next year. I just dont know what the heck to do. If I could do everything but the 3000 leasing judgement and the 2500 medical bill would that help? I saw something on another thread talking about Portfolio Recovery which is one of my CA's for the first CC on the list the chase card. Are they reporting on my credit correctly? I am so out of my league I literally ignored this for the past years as I didnt have the resources to even try and attack it.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 06:41:37 GMT

Sorry in the next year or two I could get all the medical bills if they are at 50% everything except for the $2500 one and the leasing. Progressive is actually not right but its so low and old that i will just pay it. I closed my account and went with state farm but they continued to bill me. I was on electronic notification and never knew they were still billing me.

Re: Need Advice! Please Help

starry1 — Wed, 20 Feb 2013 06:48:37 GMT

I get you. #1 you need to find out the statute of limitations in your state. Any collection that falls outside that can wait until later. Pay off everything that is still within SOL because they can still sue you and a judgment hurts your credit nearly as bad as a bk or tax lien. Get a part time job and use that ENTIRE paycheck for nothing but these debts. If you can't find a job right away, I know jobs are still scarce, then go offer to mow lawns, collect cans for recycling. Something, anything legal, to make a second income. I will leave how those items are reporting to posters more experienced than I am, but at first glance, they seem to br reporting okay, though portfolio should not be a factoring company.

Re: Need Advice! Please Help

starry1 — Wed, 20 Feb 2013 06:58:11 GMT

I forgot to add, before you start paying anybody, call or write and get a settlement deal that includes them deleting from your credit report once you've paid. Do a search for PFD or pay for delete in this forum to get a feel for how that works.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 07:06:57 GMT

Thank you. I work full time and am back in school but during summer break I will pick up a second job. I appreciate your help.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 18:18:46 GMT

Everything is still within the SOL. At the bottom of the debts listed its gives an estimated date of removal the CC's are all coming off in 2014. I know nothing about credit reports I just never knew that a company (portfolio) could report on the same debt and list it as open and a factoring company for a debt that's been charged off 6 years ago and SOL for 12/2014 (Capitol One). Even my citibank card that is being reported from midland credit as a FC as well is only listed once from them. Is this correct?

Re: Need Advice! Please Help

starry1 — Wed, 20 Feb 2013 18:49:19 GMT

SOL and CRTP (credit reporting time period) have no relation to each other. Statute of limitations is how long your state allows lawsuits against you for a particular debt. CRTP is how long they can be listed on your credit reports. Now if your state's SOL is 7.5 years, then they would be the same. So in your research, what did you find out about your state's SOL laws ?

For example, some state's have a SOL of 4 years, which means after 4 years you can no longer be sued, but the debt can show on your credit reports for another 3.5 years.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 18:55:53 GMT

The SOL is from the state in which the creditors address is located, correct? Not where my residence is? I'm not sure how I would find that out. Do I Google their address to then find what the SOL is for that state? At 26 I should know these answers.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 18:59:14 GMT

This is from Maryland and why I'm partially confused.

The Statute of Limitations may be Based on the Original Contract and may Vary Depending on the Type of Contract and Contract Language

It is necessary to understand that the applicable statute of limitations for a particular debt may not be based on where a consumer resides or where a legal action is brought; instead, the applicable statute of limitations might be based on the language of the original contract (such as a credit card agreement); the original contract typically specifies which state's laws apply. Thus, even if you live in Maryland, a particular obligation may be based, for example, on the laws of Nevada, South Dakota, or Delaware, or whatever state is specified in the original contract. However, there are other factors which could also impact which state's laws (including the applicable statutes of limitations) apply to a particular agreement.

Next, the length of a particular state's statute of limitations may vary depending on the type of contract at issue and on specific language in the contract. For example, if a debt arises under Maryland law, depending on the original contract, the applicable statute of limitations could be 3 years, or could be 4 years, or could be even 12 years

Re: Need Advice! Please Help

InvincibleSummer3 — Wed, 20 Feb 2013 19:24:10 GMT

No, your state. Not the creditor's state.

What state do you live in?

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:25:08 GMT

Maryland

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:28:00 GMT

Yes, a creditor can use either. However, it is generally the state you currently reside in because you have to be sued where you live.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:36:18 GMT

This is what I am finding in regards to Maryland.

Three-Year Statute

Maryland Code Section 5-101 states that a civil action must be filed within three years after it accrues. This is a general statute of limitation that applies to a debt, unless there is a more specific statute that applies to a particular debt. Debts based on contract, both written and oral, as well as debts based on open accounts, such as credit cards, are subject to the three-year limitation period.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:39:22 GMT

Yes, from the time you went delinquent, the creditor has 3 years to bring a suit against you.

Re: Need Advice! Please Help

starry1 — Wed, 20 Feb 2013 19:43:35 GMT

To make it simpler, the very first collection on your report (Captal One) it says the date of last payment was in 2007, so they had to sure you before 2010 was up.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:47:23 GMT

Good. The CC's are going on 6 years and are set to fall off in 2014. I have 3 will that drastically help my score? Do I start working on the $2500 medical bill or the judgement from the apartment complex? Since the judgement is shared am I still liable for the entirety of the $3200. Probably so.

Re: Need Advice! Please Help

Anonymous — Wed, 20 Feb 2013 19:48:31 GMT

Thanks for all the help everyone, I really do appreciate it.