What is this process called?

[aviodont]

They mark the original debt paid. That debt was paid with a new debt, of which a payment plan is part of. That new debt is listed on the credit report It is positive for both sides since the debtor gets a new tradeline that they can make good on and for the creditor, they get money they would never end up seeing.

[FireMedic1]

You might mean you contact a creditor and work out a payment plan to pay the debt owed and a possible pay for deletion. It doesnt mean they start all over and create a new account and so forth. Once an account is created it stays 1 account forever until its PIF,closed and falls off.

[aviodont]

It is not pay for delete.  I would have remembered that simple solution.  It was what I originally wrote in my post.  They mark the original debt paid.  That debt was paid with a new debt, of which a payment plan is part of.  That new debt is listed on the credit report.

[Anonymous]

Are you referring to rehabilitation of a debt, maybe? I've seen it with student loans, but not outside of that. Most creditors will not be willing to e tend additional credit to someone they feel has already defaulted on them. But as with anything, ymmv.

[FireMedic1]

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@aviodont wrote:

It is not pay for delete.  I would have remembered that simple solution.  It was what I originally wrote in my post.  They mark the original debt paid.  That debt was paid with a new debt, of which a payment plan is part of.  That new debt is listed on the credit report.

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Is this the same creditor? Or a collection agency. There are some companies that will let you prove yourself again to make up from the past. Thats a rare bird. I dont think theres a certain name for it. Rehab maybe. But like the poster above stated that usually for student loans. Who are you talking about anyway?