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Next Steps: What to prioritize?

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Regular Contributor

Next Steps: What to prioritize?

Hey,

 

So I'm working on rebuilding after I had a major financial upset about 4 years ago. As of current, all my bad debts are beyond 4 years from the DOFD, so in my state I am past the statute of limitations for suing.

 

With that said, I have charge offs on my report from chase, amex, discover, and barclays. Additionally, I have collections from portfolio, midland, and the beureaus.  From my understanding, paying the charge offs would be a good idea as they are factoring in my Util and hurting my scores. I am thinking with these banks I am going to want to PIF so that I have the opportunity to get their products again in the future.

 

Regarding the collections, the original deliquency is over 4 years old, but the collections are reporting as young as 2 years. My concerns are twofold with these: 1) If i am to focus on these after the charge offs, and they dont accept a PFD, would I re-age the debt by paying them, moreover would I reage the debt by negotiating with them? 2) If I do nothing, do they fall off my report at the 7 year mark of when the original debt went deliquent, or when the collection was added to my account?

 

Thanks!

Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Next Steps: What to prioritize?


@dize wrote:

Hey,

 

With that said, I have charge offs on my report from chase, amex, discover, and barclays. Additionally, I have collections from portfolio, midland, and the beureaus.  From my understanding, paying the charge offs would be a good idea as they are factoring in my Util and hurting my scores. I am thinking with these banks I am going to want to PIF so that I have the opportunity to get their products again in the future.

 


Yes to paying the charge-offs -- in full if possible. 

 

Portfolio and Midland will both delete the collection from your reports after payment so long as the debt is 2+ years old (which yours is).  So I'd negotiate a settlement with them and get them paid so they can be removed.   You can look up your account on Portfolio's website and see if they have a settlement offer available to you.  Not sure how Midland's website works, but they will delete after payment. 

 

I do not know about the bureaus and their PFD policy -- but do a quick search in the forums for others' experiences with them. 

 


@dize wrote:

1) If i am to focus on these after the charge offs, and they dont accept a PFD, would I re-age the debt by paying them, moreover would I reage the debt by negotiating with them?


No, if you make payments as required until the debt is paid (either in full or settled agreement amount) they cannot re-age.    Negotiating also does not re-age the debt or reset the SOL,  but making any contact could prompt them to restart dormant collection efforts, including monthly 'collection' updates of the collection tradeline (if they have not been updating consistently) which could further ding your scores. 

 


@dize wrote:

2) If I do nothing, do they fall off my report at the 7 year mark of when the original debt went deliquent, or when the collection was added to my account?


It will fall off 7 years after the DOFD of the original debt. 

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
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Current FICO 9s | 12/2019: EX 774 ✦ EQ 775 ✦ TU 766
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Message 2 of 5
Regular Contributor

Re: Next Steps: What to prioritize?

Thanks! So I think I’ll start with chase as they are the smallest trade line, so it should be easy to pay off. After that tackle Amex and then discover. When I’m done with the charge offs, then I’ll contact collections. I figure at that time I’ll have the best odds of the lowest settlement.
Message 3 of 5
Valued Contributor

Re: Next Steps: What to prioritize?


@dize wrote:
Thanks! So I think I’ll start with chase as they are the smallest trade line, so it should be easy to pay off. After that tackle Amex and then discover. When I’m done with the charge offs, then I’ll contact collections. I figure at that time I’ll have the best odds of the lowest settlement.

Sounds like a plan -  Good luck and keep us posted on your progress!!

Personal Aphorism:
"Forget What You Feel, Remember What You Deserve"


Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 12/2019: EX 767 ✦ EQ 734 ✦ TU 757
Current FICO 9s | 12/2019: EX 774 ✦ EQ 775 ✦ TU 766
Highest FICO-8 Ever | 10/2018: 780 [on dirty report]

2019 Goal Score | 760s


My AAoA: 2.10 years not incl. AU / 3.1 years incl. AU
My AoOA: 6.10 years not incl. AU / 8.10 years incl. AU
Inquiries: EX 0/6 | 3/12 ✦ EQ 0/6 | 5/12 ✦ TU 0/6 | 1/12
Report Status: Clean

Tending my Garden til 6/2020


Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.
Message 4 of 5
Established Member

Re: Next Steps: What to prioritize?


@dize wrote:

Hey,

 

So I'm working on rebuilding after I had a major financial upset about 4 years ago. As of current, all my bad debts are beyond 4 years from the DOFD, so in my state I am past the statute of limitations for suing.

 

With that said, I have charge offs on my report from chase, amex, discover, and barclays. Additionally, I have collections from portfolio, midland, and the beureaus.  From my understanding, paying the charge offs would be a good idea as they are factoring in my Util and hurting my scores. I am thinking with these banks I am going to want to PIF so that I have the opportunity to get their products again in the future.

 

Regarding the collections, the original deliquency is over 4 years old, but the collections are reporting as young as 2 years. My concerns are twofold with these: 1) If i am to focus on these after the charge offs, and they dont accept a PFD, would I re-age the debt by paying them, moreover would I reage the debt by negotiating with them? 2) If I do nothing, do they fall off my report at the 7 year mark of when the original debt went deliquent, or when the collection was added to my account?

 

Thanks!


1) If i am to focus on these after the charge offs, and they dont accept a PFD, would I re-age the debt by paying them, moreover would I reage the debt by negotiating with them?

 

Ans : No, You wouldn't trigger a re-age. that account HAS BEEN Charged off on a DATE & Reported. THEY CANNOT change that date. (others, please correct me if i'm sending out a wrong advise here)

 

2) If I do nothing, do they fall off my report at the 7 year mark of when the original debt went deliquent, or when the collection was added to my account?. 

 

Ans : Yes, Charge-Offs will fall off 7 Years after the date of First Deliquency (+180 days in case of collections) . I just had one CO account fall off completly from the face of my Credit Reports.

Here is what i found reading through one of the Credit Websites out there:

The credit reporting time period for debt collections starts from the date of the delinquency that caused the collection.
With collections resulting from a charge-off, it starts the date the account was charged-off (not on the date of the first 30-day late payment preceding the charge-off).
So, if you were first late in February 2013 and the account was charged off in July 2013, the account should fall off after July 2020.

 

Good Luck!

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