topic Re: Strategy Question in Rebuilding Your Credit

Strategy Question

Anonymous — Fri, 19 Apr 2013 17:24:18 GMT

Hi everybody I have a strategy question I am hoping you can help me answer. I posted a couple of times about my debts but I have been served with a summons and negotiated a settlement with the law firm representing the CA. I have the documents in front of me but have no signed and sent in anything yet. I obviously do not want a judgement but have negotiated a settlement which is for less than what is owed. I am wondering now if this is the right thing to do because it will be a " baddy" for a long time, won't it? If I settle for less there is almost no chance at getting it off my CR? I am wondering if I should contact the CA directly? I am hoping to figure this out by Monday so any help is appreciated. Thanks! -Tom

Re: Strategy Question

Anonymous — Fri, 19 Apr 2013 17:26:24 GMT

It was a chase card . Midland is handling it now. Should I contact chase? Thanks !

Re: Strategy Question

Anonymous — Fri, 19 Apr 2013 17:52:46 GMT

Are you talking about the CA TL? That TL can only stay for a maximum of 7.5 years from the DoFD whether it is settled or not.

I would settle immediately to prevent a judgment.

Re: Strategy Question

RobertEG — Fri, 19 Apr 2013 18:31:49 GMT

Settlement of the debt will achieve two things.

While not immediately improving FICO score, it will prevent possible further damage by a judgment, and will update your CR to show the debt is now satisfied.

First, it will avoid a trial. Unless you can show that the SOL has expired, a trial will result in presentation of evidence by both sides, and unless you can prove the debt is not legit, they will get a judgment. That is a major derog.

Second, whether paid in full or in part, the debt balance will be updated to $0, which is very important on any manual review of your CR. Any showing of unpaid, delinquent debt can be a show-stopper regardless of FICO score.

The one additional thing I would attempt to secure from them is an agreement not to report the additional special comment of paid for less, which they are entitled to do if satisfaction of the debt is based on their acceptance of less than the full amount. The acct will then show on your CR the same as if paid in full, which avoids informaing others reviewing your CR that, in the past, you did not fully pay all debt that you incurred.