One foot in the grave..

Here's my two cents (at the customary 29.99% interest)

Her credit is trashed anyway, so BK amy actually be an improvement.

It's not often I suggest someone just move away, assume a new identity and start over, but in her case that may be a good idea. You mentioned she doesn't earn much, but didn't say what she does. Well... low paying jobs can be had anywhere.

Are you looking for a shoirt term roomie?

 

I am assuming that you have a copy of all 3 of her credit reports already since you know her score. If you don't have all three, I'd order them. They can be as different as night and day.

As a first round, and maybe the best way to get her off to a decent start is to dispute the derogatory accounts on her reports. Some people recommend disputing only 3-6 items, others will tell you to go gung-ho and dispute everything. I would think since you are playing beat the clock, I'd go gung-ho.

Second, on all the open derrogatory accounts, she should request validation. I know it gets expensive sending letters CRRR, but if even just a few of those can't validate and remove their TLs from her reports she is that much farther ahead.

Does she have any positive open credit currently? Anything positive on her report? Perhaps there is someone who could add her as an authorized user on their account that is in good standing so she is showing a positive tradeline with history.

Perhaps you could list more detail about what is reporting (without acct. numbers and other personal info of course). That way, everyone here will have better insight as to what you are exactly dealing with.

 

Always validate with the collection agency who is reporting to the CRA's. Always send your request via CMRRR.

What is the Statue Of Limitations for these types of debts in her state? If they are more than a few years old they may be legally uncollectable

If she were to move and change addresses this might be a help further down the road when disputing her accounts with the CRA's

Check out any of lbrown59's posts and look for the blue links he has to Validations

good luck!

 

21 collections; 13 C/A's and at least one judgment? She needs to go BK, but the Court will want to see some semblance of stability in her homelife and employment (or at least efforts to obtain gainful employment).

Do it now while the bankruptcy rules are still somewhat consumer friendly.

 

I think we are losing track of the time frame here - she has 6 weeks to clean up her credit and it just isn't going to happen. I've been working on mine for 6 MONTHS and it's just beginning to work. If she can't move in with you (and I assume you are in the Phoenix area) there are lots of furnished rooms she can rent in the PHX area (even some in Tucson) and lots of jobs she can take to help her get established. I am afraid with the parameters you posted in your first post, becoming a SKIP, hopefully with a new identity, is her only realistic solution to "where will she live in August?"

If she prefers to stay in Colorado she can do the same thing but the chances of a collection agency finding her and garnishing her paycheck, which in her situation is just about the LAST thing she needs, is greater than if she pulls up her roots and transplants somewhere else.

 

I'm not sure I understand the wisdom in becoming a skip/new identity. She has virtually no tangible assets to protect and no wages to garnish. She's judgment proof. If every single one of her creditors converged on her and get judgments, they couldn't collect a dime.

If she went BK right away, all collection efforts are halted for 120 days. And once the debts, including the judgments, are discharged she can begin to make her way back.

 

edit: duplicate

 

Will time actually be in her favor? Will she have the money then to pay all debt and new expenses of housing? I would file BK and work with her on financial issues. She needs your help in setting up a realistic budget.

Michelle

 

Re: Re: One foot in the grave..

Simple - yes she is judgement proof (now), and that's why I suggested against bankruptcy. Hopefully, she won't be judgement proof forever. You File BK to get or keep creditors off your assets. That includes bank accounts and paychecks. Menawhile, the 7 year FCRA clock is ticking, as well as the State SOL for suit. Judgements, however, have a very different lifetime for collection and that lifetime can be renewed. When I was a bill collector I loved to sue people when they seemed hopeless, and let them think being judgement proof will help them. It may in the short term, but ten years later (in NY judgements are good for 10 years and can be renewed for another 10) I would run their credit again, find their jobs, find they were no longer judgement proof and zap 'em. The only way to be truly Judgement Proof is to not be sued in the first place until the SOL has run out.

Let's assume it takes this young lady 2 years to get her act together and actually no longer be judgement proof. Here in AZ half the Collection SOL is gone. An account that is a 2 year old skip is unlikely to be worked hard or often, even in the most aggressive CA. So... 2 years after she is no longer judgement proof, she is suit proof. Three years later her credit is clean under FCRA since all the bad stuff will now be 7 yers old.

File a BK and you add 3 years to the FCRA 7 year clock, at the time you file.

See the reasoning? It's how to get her act together within the parameters given - 6 weeks to do it, and how to effectively protect herself in the future.

 

One foot

Will someone please list one link of a sample validation letter here so she can use it?
broncsboi

===============
How bout the letter it's self?

Validation & Estoppel letters 6-3-3
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Here is the Validation Letter you want to send.
Don't make any changes on it and don't hand sign it.

Your Name
Address
City State Zip

Company
Address
City State Zip

Date

RE: Account #_________/Original Creditor’s Name

Dear Sir/Madame:

Thank you for your recent inquiry. This is not a refusal to pay, but a notice that your claim is being disputed. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. Please complete and return the attached disclosure request form.

Be advised that I am not requesting a "verification" that you have my mailing address, I am requesting a "validation;" that is, competent evidence that I have some contractual obligation to pay you.

You should also be aware that sending unsubstantiated demands for payment through the United States Mail System might constitute mail fraud under federal and state law. You may wish to consult with a competent legal advisor before your next communication with me.

Your failure to satisfy this request within the requirements of the Fair Debt Collection Practices Act will be construed as your absolute waiver of any and all claims against me, and your tacit agreement to compensate me for costs and attorney fees.

Sincerely,


Your Name don't sign


- - - Include the following on a separate sheet of paper - - -


CREDITOR DISCLOSURE STATEMENT



Name and Address of Collector (assignee): _________________________

Name and Address of Debtor: ____________________________________

Account Number(s): ____________________________________________

What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms.

Have any insurance claims been made by any creditor or assignee regarding this account? YES/NO

Has the purported balanced of this account been used in any tax deduction claim? YES/NO

Please list the particular products or services sold by the collector to the debtor and the dollar amount of each:


Upon failure or refusal of collector to validate this collection action, collector agrees to waive all claims against the debtor named herein and pay debtor for all costs and attorney fees involved in defending this collection action.

________________________________
Authorized signature for Collector

Date_______/_______/_______

Please return this completed form and attach all assignment or other transfer agreements that would establish your right to collect this debt. Your claim cannot be considered if any portion of this form is not completed and returned with the required documents. This is a request for validation made pursuant to the Fair Debt Collection Practices Act. If you do not respond as required by this law, your claim will not be considered and you may be liable for damages for continued collection efforts.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Estoppel Letter
DON'T CHANGE
Send CRRR

Your Name
Address
«City», «State» «Zip»

Company»
Address
«City», «State» «Zip»

«Date»

RE: Dispute Letter of <insert date>

Dear Sir/Madame:

As I have not heard back from you in over 30 days regarding my notice of dispute dated <insert date>, and you have not supplied the demanded proof of the alleged debt, under the doctrine of estoppel by silence, Engelhardt v Gravens (Mo) 281 SW 715, 719, I may presume that no proof of the alleged debt, nor therefore any such debt, in fact exists.

In a good faith effort to resolve this matter amicably, I restate my demand for proof of the debt, specifically the alleged contract or other instrument bearing my signature, as well as proof of your authority in this matter. Absent such proof, you must terminate this collection action and correct any erroneous reports of this debt as mine.

For the record, I state again that as I have no account with you, nor am I your customer, nor have I entered into a contract with you, I must ask for the following information:


Please evidence your authorization under 15 USC 1692 (e) and 15 USC 1692 (f) in this alleged matter.

What is your authorization of law for your collection of information?

What is your authorization of law for your collection of this alleged debt?

Please evidence your authorization to do business or operate in the state of ____________________ .

Please evidence proof of the alleged debt, including specifically the alleged contract or other instrument bearing my signature.


You have fifteen (15) days from receipt of this notice to respond. Your failure to respond, on point, in writing, hand signed, and in a timely manner, will work as a waiver to any and all of your claims in this matter, and will entitle me to presume that you sent your letter(s) in error, and that this matter is permanently closed.

Your continued silence is unacceptable. Either provide the proof or correct the record to remove the invalid debt from my credit files with the three primary credit-reporting agencies. You are currently in violation of the Fair Credit Reporting Act and the Fair Debt Collection Act.

Failure to respond within 15 days of receipt of this registered letter will result in a small claims action against your company. I will be seeking $_______________ in damages for the following:


Defamation

Negligent Enablement of Identity Fraud

Violation of the Fair Credit Reporting Act


After obtaining the judgment against your company, I will obtain a Writ of Execution from the Sheriff’s office in your county and I will begin the process of attaching property or funds to satisfy the judgment.

For the purposes of 15 USC 1692 et seq., this Notice has the same effect as a dispute to the validity of the alleged debt and a dispute to the validity of your claims. This Notice is an attempt to correct your records, and any information received from you will be collected as evidence should any further action be necessary. This is a request for information only, and is not a statement, election, or waiver of status.

I affirm under penalty of perjury under the Laws of the Land for the United States of America, that the foregoing is true and correct, to the best of my knowledge and belief.

Sincerely,

Your Name DON'T SIGN

 

What a nice brother you are to be so concerned about your sister's well being

You say the CA's are "date reported" in the last few months. This is kind of unclear. You need to know the dates these CA accounts first became delinquent to figure 1)how long they will remain reported to CRA's and 2)if they are COLLECTIBLE----->do they fall within Colorado's Statue of limitations (SOL) for being able to still collect on the debt. If most of these debts are past the SOL, there is no need to consider BK.

Next, like lb59 says, validate CA account's---> wait a week or two THEN dispute with CRA's. But on medical accounts, you should do a search on WhyChats HIPPA information for medical accounts before disputing. Whychat has their own site, just do a search on yahoo under whychat to read about CA medical accounts and the new HIPPA requirement. People have been very succesful with having these accounts removed.

I wouldn't dispute the judgment right away....you don't want to waste your two precious disputes SOME CRA's only give you per account. People have had success with removing these by removing address attached to judgment, then disputing as NOT MINE.

Picking up you sister's credit will take some time, so I really don't think you can get this done in 6 weeks. I would realistically allow 3 months to a year. But if the apartment CA is the only account holding your sister back from her new apartment, then she might get lucky with validation/dispute combo and get that off her report.

Have your sister start focusing on BUILDING positive credit while she is working on the negative TL's. Look at secured cc's and other things.

This isn't an easy process, so I hope your sister understands and appreciates the level of work involved in repairing her credit AND appreciates your help. If she is willing to put the time in though to fix her credit, she will be MUCH BETTER OFF in the future.

Seems like if you and your wife are OK with her TEMPORARILY moving in with you, this could really help your sister $$ave some $$$, learn to handle her finances better, and prepare her to qualify for an apartment of her own in several months. But I know what it is like having family members move in with you and your spouse. Best advice, clearly state this is TEMPORARY and make a deadline for when your sister should find her own home.

 

Re: Re: Re: One foot in the grave..

It's gonna be a lot more helpful if you let us know what in particular you don't understand here

Brett

 

Re: Re: Re: One foot in the grave..

I see your point re the 7 year SOL. IMO, however, she has two choices: (1) skip, wait it out for 7 years and she has a clean history after they fall off; or (2) file BK now, get everything including the jdugments discharged and she has access to credit (which she'll inevitably need) in about 2 years. AND, she has no collection hassles in the meantime. She can further save money on BK filing fees by filing in forma pauperis (can't afford the filing fee). All she has to do is obtain the necessary forms and prepare and file them herself.

Yes, the BK will be on for 10 years but that's not a big deal. I still have mine on from 1996 and I've bought three brand new cars and mortgaged some land (thank God) in the meantime. It can and is done everyday. But she's gotta get rid of the current collectable accounts and the judgments.

 

Re: Re: Re: One foot in the grave..

I just don't know if filing BK on $6800 worth of debts is it worth, especially if a large portion of these debts are near or past the SOL. Judgments can
be renewed forever, and in all likehilihood, if your sis. want's to own a house she will at LEAST have to have them shown as PAID, but shoot for removal from the CRA's.

Of that $6800, how much are in judgments?

How old are the CA debts that don't have judgments? To figure out the SOL, you need to know the date of delinquency of the CA accounts. That is when the debt first became 90 past due (I'm not 100% sure on this, maybe it is 180 days since the debt became past due).

Like flyingf said, your sister seems judgment proof for the time. Considering your sister's situation, the CA's seem very unlikely to waste their time getting a judgment on her for the CA accounts....assuming the debts are still within the SOL.

CRA's can report a debt seven years from date of deliquency. It it not uncommon for debts to be "reaged" on CRA reports (illegal). So you need to know the date of deliquency yourself. Also, the SOL has nothing to do with how the the debt can be reported to the CRA, it has to do with how long a creditor can collect on the debt (obtain a judgment) from the date the debt was incurred....I think it is 6 years for Colorado.

 

Re: Re: Re: One foot in the grave..

I don't know about judgments being removed by bankruptcy, but some may be. I think it's worth a half hour of a lawyer's time (some give an initial consultation free) to find this out.

That may be a big factor in how to proceed. Since judgments can be renewed and stay around for years, not just on your report, but the legal obligation to pay, it may be worth a BK to get rid of them if possible.