Advice needed for family member in hellacious credit state...

[Anonymous]

I have a couple of family members who are in the process of halting a bankruptcy and attempting to figure out the best way to rebuild their credit. They have numerous charge-offs in the realm of thousands. And, currently, they have two active collections each. I told them that they should validate all their debts before pursuing a bankruptcy, based on a review of their report. They claimed that not all the negatives reporting seemed legitimate. So, they are in the process of disputing said negatives.

So, just a quick summation of their credit picture:

Family member #1:

5 charge-offs

(CAP ONE)

(CAP ONE)

(HSBC)

(SYNC BANK)

(MERVYN)

2 active collections

(GE MONEY BANK)

(GE MONEY BANK)

4 lates on mortgage account

All the charge-offs roll off in a year.

Scores are high 500s

Currently disputing

Just got approved for an Amazon card with a 700 dollar limit, which I thought was odd, considering the current state of her credit.

Also, even weirder, she's pre-qualified** for TWO Cap One cards, with the two charge-offs.

Family member #2:

2 charge-offs

(CAP ONE)

(SYNC B/LOWES)

2 active collections

(CITIBANK)

(GE MONEY B)

4 lates on mortgage

Charge-offs roll off in a year

Scores in low 500s

Currently disputing

My question: Since these charge-offs are extremely old, 6 years or so, how likely is it that they would get in with any lenders at all? Additionally, what would their best course of action be, since they've decided against bankruptcy. They are wanting to start rebuilding now. Any advice for them would be greatly appreciated.

[Anonymous]

Time, if past SOL to be sued.

[Anonymous]

Your family members should take the next several years to rebuild their credit and then everything should be ok. The charge-offs will fall off. The active collections, that's a bit of another story. As was said though, if it's past the statute of limitations then I don't think they can come after them.

Family Member 1 burned Synchrony/GE, which is bad, but not from a credit standpoint. As long as that person doesn't want store cards, then I don't see it being a huge issue.

Family Member 2 burned Citi, which is more problematic. I wouldn't be surprised if Citi blacklisted that person for the next decade or so.

[jsucool76]

OP said they were approved for an amazon card, which is ge/synch.

unless they meant amazon visa which I kind of doubt.