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What is this process called?

aviodont
Member

What is this process called?

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.

Message 1 of 5
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FireMedic1
Super Contributor

Re: What is this process called?

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.





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 5
aviodont
Member

Re: What is this process called?

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.

Message 3 of 5
crazedforcredit
Established Contributor

Re: What is this process called?

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.
Starting rebuild July 2019 EX 501, EQ 512, TU n/a CCT Fico 8 scores
Message 4 of 5
FireMedic1
Super Contributor

Re: What is this process called?


@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.


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?





Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 5 of 5
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