CR after settlement with creditors

Discussion in 'Credit Talk' started by melhawaii, Sep 25, 2003.

  1. melhawaii

    melhawaii New Member

    I have been working with a debt negotiation company and have already settled with 2 of my creditors for around 50%. I have also read in the FAQ about how the creditor will report the settlement to a CA. What is the best way to approach this, i.e., how can I minimize a negative report on my CR? Where can I get info to help me repair my credit rating?
     
  2. lbrown59

    lbrown59 Well-Known Member

    Re: Possible to get late pmnts removed?
    http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&postid=375006#post375006

    Here's my story. A couple years back I got involved with a debt consolidation company called Jubilee Financial Services. They told me to stop paying the creditors and they would fix everything, I just needed to keep making payments..

    Well several months down the line (and several 30/60/90 day late payments later) I find out they haven't dealt with the creditors at all and the only thing they did for me was screw up my credit and take my money.


    THE END ** *** ** LB 59
    """"```--~~~~~~~~~--```'""'''
     
  3. lbrown59

    lbrown59 Well-Known Member

    1*have already settled with 2 of my creditors for around 50%.
    2*I have also read in the FAQ about how the creditor will report the settlement to a CA.
    3*What is the best way to approach this, i.e., how can I minimize a negative report on my CR?
    melhawaii
    =================
    1*Did you get deletion in writing.
    2*You mean CRA don't you?
    3*Are you still with the debt negotiation company?
    THE END ** *** ** LB 59
    """"```--~~~~~~~~~--```'""'''
     
  4. melhawaii

    melhawaii New Member

    I've been working with Curadebt out of California. They just sent me one settlement letter from a credtor saying that they agreed that I would "pay a total of $xxx in one lump sum payment by mm/dd/yy to settle this account in full." I had requested to receive the other letter and hopefully it is coming. And yes, I meant CRA.
     
  5. MrJeepIt

    MrJeepIt Member

    Did you give them one lump sum or monthly payments?
     
  6. chrisb

    chrisb Well-Known Member

    Re: Re: CR after settlement with cr

    Don't take this the wrong way, but you're going to end up with messed up credit probably worse than before you started with the Debt Management company. First off, you're agreeing to "settle" the debts for 50%. They may be marked as "Settled for less than full amount" which notates that the account is settled, and no more debt is owed, but they took less which looks just as bad as an unpaid charge off. Either way, an unpaid charge off is about the same as a paid charge off as far as many things are concerned (the only thing that cares if it is paid to make a difference, is that most mortgage companies won't give you a mortgage with any unpaid on your credit reports.

    You probably could have sent settlement offers yourself to your creditors and saved the fees of the Debt Management Company, plus could have worded your offers to try and include "Show the account paid as agreed, or delete the tradeline" so that after you paid the creditor, they would agree to delete your tradeline off your Credit Reports, or change the account to a good standing.

    But at least the creditors are agreeing to settle for under full amount saving you some money.

    Good luck getting them paid, then working to get them deleted if needed to clean up your credit.

    ChrisB
     
  7. melhawaii

    melhawaii New Member

    Had the funds to pay in one lump sum.
     
  8. melhawaii

    melhawaii New Member

    Re: Re: CR after settlement with cr

    Thanks for the reply. Credit is already "messed up." There were many situations that caused me to fall way behind on my obligations, including my mortgage. Because we wanted to keep the house, we filed a Chapter 13 earlier this year, with a 5-year plan to pay off the debts. Family members eventually stepped in to help our housing and job situations, and a close family friend offered to buy our home from us, which gave us enough money to pay off all our debt. Our attorney said he could withdraw the Chapter 13 before the sale closed, which allowed us to retain the cash from the equity. Since we already filed Chap. 13, I figured going to a debt negotiation company (to allow me to pay the debts at a fraction of the balance owed) couldn't make my credit worse. In fact, I was probably in a better negotiating position because of the filing.

    Now that we are clearing the debts, I hope to be able to get some decent credit rating sometime in the future, even if it is years from now. However, I want to make sure that the things I do today will allow me to do that sooner rather than later.
     
  9. chrisb

    chrisb Well-Known Member

    Re: Re: CR after settlement with cr

    Than that sounds like you have everything in control, yes, a chapter 13 BK would be worse than anything you end up with through a negotiating company.

    Good luck, and I hope everything works out.

    ChrisB
     

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