Illegal foreclosure ruined my credit,what to do next?

[Anonymous]

I was one of the millions included in the illegal foreclure process in 2010. I hired a lawyer before knowing what the banks were doing was illegal. A year of mitigation and stress and $7,000.00 to the lawyer not to mention my trial payments to Litton they foreclosed on my home and the lawyer skated out on me(still trying to track down the lawyer,Ryan,Blake,and Associates,number and website no longer available,go figure,but that's a story for another time) so in the interim my husband and mines credit score suffered greatly. I was unable to pay on credit cards because my lawyer was charging me monthly $500. We were a one income family of 6. Medical bills were stacking up and our reports just became one big mess. Our settlement check from Litton? $300.00, what a slap in the face. I have 16 accounts in collections. I have no credit cards. They closed the ones we had when we got so far behind and no one will approve us obviously because of our credit.  Now on top of it all the collection company's hired by the hospitals are suing,we have a May 29th date. Now we have that on our credit. Last year we filed for bankruptcy,chapter 7 but was dismissed due to failing the means test. The means test is a joke. My husband had a lot of overtime in one of the months and our debts weren't enough to pass. They also used my husbands 457 plan as part of his income even though he pays no social security,this is our retirement and they want us to stop paying it and use it as a chapter 13. So after a long detailed explanation my question is,how on earth do I get my credit scores up? My husbands is 580 and mine is 558. I researched it and one website said to pay off debts in collections but only with a pay and delete letter,so basically I'll pay xyz  if you delete from my credit. Another one said don't pay it off,it will restart the clock on the SOL. Even if you pay it off,the credit bureau will report for another 7 years. I recently got a job so that I can start paying stuff off and can afford $500 a month. I haven't done anything yet because I don't know what to do next. Another website said not to send a validation letter because it will single you out,so if they have tens of thousands of debt to collect by sending a validation letter you just got yourself noticed. I just want to build my credit. My husband and I want to buy a house when he retires which is only about 5 years away. I have stuff on my report that won't fall off until 2020! How can I start rebuilding when no one will give me a credit card? Any advice would be much appreciated!

[TRC_WA]

I'd look into Chapter 13.

[Anonymous]

Thanks but I was going to be converted to a ch.13. The problem was they were going to use my husbands income from the previous 6 months(overtime which isnt reliable and make him stop paying his retirement plan since it's voluntary) as part of our payments. Hes not going to forfeit his retirement and I don't blame him. He doesn't pay into social security and gets pers but it's not that much,his 457 retirement is the only way he can retire.

[coterotie]

An actual legitimate credit counseling agency may actually be able to help you.  They can sometimes fill in the gaps between bankruptcy and just winging it.  Problem is that if you don't get on top of negotiations May 29 will really screw you.  Best course is to file for a continuance, say you're exploring options of bankruptcy etc. and want a hearing at a later date.  Then work out a plan. 

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@Anonymous wrote:

Thanks but I was going to be converted to a ch.13. The problem was they were going to use my husbands income from the previous 6 months(overtime which isnt reliable and make him stop paying his retirement plan since it's voluntary) as part of our payments. Hes not going to forfeit his retirement and I don't blame him. He doesn't pay into social security and gets pers but it's not that much,his 457 retirement is the only way he can retire.

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[Anonymous]

I can file a continuance? Thank you! I will try that,because I was going to pay it off but cant until June 6th. If I can file a continuance and pay it off before my next court date then it won't affect my credit,this particular company is a dentist office,they haven't put this on my credit report yet and never went through a collection company. I feel a little better.

[coterotie]

Make sure you understand what you're doing with the continuance.  Have the judges clerk walk you through it and ask whether you will have to show up to argue the motion.  You will sometimes need a good reason, but usually the first continuance is relatively automatic.  In my jurisdiction, if you file the continuance relatively early, it will be granted automatically.  In fact it can be done with a phone call.  A good excuse is your work schedule will conflct with the hearing on that date and since you have just returned to work, it is difficult for you to get time off without a long notice.  Remember each jurisdiction/judge is a little different.  Make friends with the judge's clerk, they are usually very helpful.

Make sure it is granted before you do a no show at court on the May date.

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@Anonymous wrote:

I can file a continuance? Thank you! I will try that,because I was going to pay it off but cant until June 6th. If I can file a continuance and pay it off before my next court date then it won't affect my credit,this particular company is a dentist office,they haven't put this on my credit report yet and never went through a collection company. I feel a little better.

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