How to clean up credit report (Collections, Negative accounts, Late Payments) All info in post.

[ghawdex]

So let's begin, I am doing this for my brother btw.

Collections

Protofolio Recovery: Assigned in 2018 - $7,364 - Capital One

Negative Accounts (Not sure why these don't show on his credit report as collections?)

• Nelnet (Shows twice on all reports): Paid account/was delinquent 180 days or more past due date - Paid Off

• Sheffield Finicial: Charged off as bad debt (Although he is still making payments, to Sheffield)

  Balance:$4,000

• Chase: Account delinquent 90 days past due date -

  Balance:$15,000

• Chase: Charged off as bad debt (Doesn't show as collections)

  Balance: $2571

• Citi Card: 120 days past due

  Balance: $800

• TD Bank: Charged off as bad debt (Doesn't show as collections)

  Balance: $11,500

• Chase: Charged off as bad debt

  Balance: $5,800

• Discover - 90 days past due

  Balance:$10,300

• American Express: 60 days past due (Paid off, and they closed his account because of the collections and other lates)

So this is what his report pretty much looks like..

What I had try doing already for him is talking as him to the 60-90 day accounts that are past due, but none have been helpful at all.

I asked about closing the accounts and taking away all the interest and late fees and just do a payment plan. None were having it.

So, I don't know what else he can do. The only thing I could think of is he lets all accounts go into collections, and offers a settlement with a Pay For Delete.

I'm not going to get into as to why he is in this position right now, but he went through a lot of issues from 2017-2018, from health and divorce.

Just looking for some advice on the best possible route.

He is now back working, but not making much.

He had always been good with his money and cards, but **bleep** just hit the fan.

Would letting the accounts go into collections and doing a PFD be the best option?

My other option was this... I would take out a personal LOC and pay the debts off, just to give him a head start.

I probably won't see most of the money, but that is not my concerned.

He has overcome everything else, and this is his major issue..

The scores

• Equifax 495
• Transunion 506
• Experian 496

[KJinNC]

I don't have any sage advice, but good luck to you and your brother. Helping him in this way is admirable.

[Anonymous]

Honestly, I'd suggest filing bankruptcy and going that route.  Noble of you to try to help and him trying to get it all sorted.  Sometimes it does not fall the way we want it to so we use what is available to get a clean start. 

Best of luck to both of you.

[ghawdex]

Bankruptcy wasn't even an idea..

However, I'll suggest it.

How exactly does this work?

Hire a lawyer and they take care of everything?

If so, once that hits, does everything on your report go away and just shows banruptcy?

Also, what happens with the score? how long does it take to start building back up with such a remark on your profile?

[Anonymous]

---

@ghawdex wrote:

Bankruptcy wasn't even an idea..

However, I'll suggest it.

How exactly does this work?

Hire a lawyer and they take care of everything?

If so, once that hits, does everything on your report go away and just shows banruptcy?

Also, what happens with the score? how long does it take to start building back up with such a remark on your profile?

---

Honestly, his scores won't get much worse.  The type of BK depends on his income and total amount of debt.  There is a BK section here where you can ask some general questions.  He would recover better from a BK than trying to go the route you are on right now, in my opinion.  You should mention that to him and look up the types of BK and talk to a BK attorney.  I feel the process is relatively inexpensive compared to getting a fresh start. 

[Anonymous]

He should definitely fil bk he is in really deep.. if he is able a ch 7 should be able to put him back in the race after a couple months after filing. Maybe the money you were going to use to help him you could help him file for b.

[calyx]

Definitely consult with a BK attorney.

One thing, though - I see the Nelnet, which I'm guessing is a federal student loan.   That will never go away if that's what it is (not with BK), and he should contact his servicer to set up rehab payments.    Whether or not he does that now or after BK (if he goes the BK route) should be discussed with an attorney.

Student loans are (by law) not generally discharged through bk and can follow him through his life - including garnishing wages, tax returns, and things like social security payments.    If he successfully rehabs (usually a small payment over 9 months), the default will be removed, and the tradeline will be dated back to the opening, which could be REALLY good for establishing aged tradelines.
SOME servicers will also remove lates (not all do), so there's a shot of getting those off, too, though it's definitely not guaranteed.

[Anonymous]

Roughly $50K of debt with low income... I would also suggest talking to a BK attorney. His scores will rebound a lot quicker than taking years to pay this all off. Letting them all go to collections will tank him into the 300s probably- I don't advise that. If he files BK his score will be much higher a few months after discharge...

[Anonymous]

I agree
Those few loans of tuition wont be anything compared to the issue he has now. I think a bk will be a mini miracle for your brother.

From experience the larger the bk form the lower the price to file..And that's just from my 6 different consultations.

They have been amazing!