Hi guys. How is everyone. Here is the problem. I have a friend. This friend has bad credit. This friend had a good job etc, etc but flipped out on some narcotics and spent a year in jail (not prison) and 6 months in a mental hospital (looney bin) to regain sanity. Needless to say, this person is trying to build his life back and credit. This includes doing something to the credit that was destroyed while he was locked up and in the mental hospital. This person's legal case will end around November when they finally go back to court. This credit stuff went bad in 1999-2000. So here is my question, What should he do as far as dealing with getting this stuff off his credit report. We are talking, defaulted student loans, credit card accounts charged off and phone bill collection. Do they have special provisions when dealing with the creditors when you have locked up or in a mental hospital. I think most of the creditors know he was in jail.
Hi Roni, Did any of his cc's have the optional insurance? If so, that may help cover some of it. Sounds like a mess, but a lot of us have been through the credit part of it. You know what to do as far as the student loans go. As for the charge offs, I would first dispute them. Some may be deleted. The ones that stay, he might try to negotiate a pay for deletion agreement due to the unusual circumstances. I have faith that you can guide him thru it. BTW, how's biz? PS, want a laugh? go look at the "Inquires" thread a little ways down. Guess who's back? LOL
Thanks LKH. I was thiniking that maybe he could work with the credit card companies My business is going GREAT! I have over 100 patients and loving it. Sept 4 will be my 3 month anniversary. lol. I am working w/ my friend to open secured credit cards. Are there any NEW ones out there that are better. I was recommended, capital one and FCNB roni
I know legal action cannot be taken while a person is hospitalized. Otherwise, I don't know of any special provisions.
It's a mess. BTW - they can take legal action - just not while formally "committed" (someone else has guardianship, they then have to "deal" with it - although they aren't "responsible" for it). The best way I can see to do it is from a position of rebuilding strength - "I was a mess, now I'm on the road to getting better ... I have a job and want to make good on what I can. Here's my best offer, $x right now to settle (with a delete or at least removal of all derog. from CBR) or $x/month. Can we work together?" Which companies does he have to deal with? Some are more compassionate than others. I hope he knows that he's got a hell'a friend in you for doing all this! Best of luck- mj
unfortunately, mental problems and jail are really of no circumstance to the people that are owed money. They have no pity........
Who's back? Did I miss something??? Hey Roni, Sorry to hear about your friend. My guess is that he'll have to go through the regular channels to clean up his credit. Some companies might have sympathy on him and offer settlements but that's not what he really wants so... Good luck!
Thanks for the quick replaies. I was afraid that the companies may not deal. Anyways, his credit problems are charge offs with: AMEX - $8K Fleet- $11K and you know what, i dont remember the rest. He has about 5 charged off credit cards. He was doing really well financially before this all happened.....Ivy League grad, wall street, MBA etc. etc. But all that is not important now. Next question, for those of you who are in corporate america, how much has having bad credit such as his plaqued you from NOT getting a job. Please share your experiences. Thanks for the advise.
A friend of mine has about 10 chargeoffs on his account. They were unpaid until last summer. He used to work for a major bank. They did a credit check and they hired him. I was shocked! He works for a financial company now and they did a credit check and hired him as well. However, I do know of others who work in regulated industries, like investment banks and insurance who HAVE been denied employment b/c of their credit. However, I would think that a criminal charge would be worse than the credit problem since job applications DO ask you about those things.
Roni- Never had it come up as an issue. My guess is that if the company wants him ... based on his credentials and interview ... then they'll overlook credit problems. If they are looking for a reason NOT to hire him (avoiding discrimination or ADA legal issues) then it's an easy factor to disqualify someone on. Ironic how "unbiased" consumer credit info. can be (and is) used as a tool of discrimination? Anyway - I wouldn't hold my breath about Fleet Card Services being helpful -- but a letter to the corporate HQ in socially progressive Boston may get you something. Address it to Chad Gifford, C.E.O. (he's a very progressive, community-oriented, socially responsible kind of guy...). Good luck- mj
Hey Roni, Good to see you are still around I'm going throught the "interviews with bad credit" right now. I am going back into corporate America after almost a year of consulting -- because 2 of my 3 partners have taken full time jobs. Seems that companies really liked what we were doing and making offers to come on full time. It's just gotten to be too much for us to handle with just 2 full time partners and we can't diversify enough to make it worthwhile... I'm pretty far along in the process for 2 positions with different companies. Although both do "background checks", I haven't seen any inquiries on my CRs and I'm pretty far along in the process (expecting offer letters in the few days or so). So I tend to agree, if they want you bad enough, they tend to overlook credit issues.... As always..
