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Member Since: December 2013
Chapter 7 is full bankruptcy where you use your assets to pay off debts, if you have no assets then all debts are written off and you do not owe anyone that was listed on the bankruptcy. This will remain on your record for 10 years. Chapter 7 is where you make a payment schedule to pay off the debts. This remains on your record for 7 years. In addition to the bankruptcy, your credit report will reflect those accounts which went into collection and had late payment indications.
faidros's reply was:
The faster you contact the firm to negotiate a settlement (delete or not) the better for you. If it is increasing by $52 a month, that's another $104 which is going to be charged. This is over $300 pear year that it is increasing. I presume this is the original creditor so you had terms you agreed to which includes late payment fees. Aren't you glad your Mom did not cosign for this one or she'd be getting a bill any day and it would be on her credit report soon. While pay for delete does occur, the odds are always against you in these negotiations. if they feel they have a better than average chance of collecting the full amount through civil action they may not be willing to settle at all. The less the liklihood of them collecting the better your odds are in the negotiation, delete or not.
faidros's response was:
You are comparing apples to oranges. Credit Karma does not use FICO to compute the credit score you see here. Credit Karma uses the Advtange formula which gives higher priority to the most current 2 years. You need to find out which scoring system Credit Checl total uses. is it FICO 1, 2, 3, 4, 5, 6, 7 or 8 or is it their own formula. There is no "true" FICO score. Every credit company applies their own twist to their scores based upon the factors that aremost important to them. Just like your credit cards which give you a FICO score, it is again their version of the FICO formula.
It could tale 14-60 days for this to appear on your Credit Report here on CK where you will see a decline in your credit score. Look at the date that the finance company normally reports to the credit bureau. It should be reported near that date monthy. If the payoff was after the most current report, then it will during the next month. Some items are updated at the actual bureau in batches, it would be reflected in that batch update. The information should be available to CK on your weekly update after that time. The finance company may not report to all three bureaus at the same time so it could take a few more days for all updates to be processed.
One should never file a dispute "for the heck of it" Those with excessive disputes can be flagged by the bureau. There are specific reaons one may dispute an item on their credit report. When a dispute is filed and the creditor does not respond within a specified number of days, the item will be removed by the credit bureau. There is nothing to stop the creditor from filing the information again at a later date. Normally, the items being removed usually come from a credit collection agency. Once they no longer hold the debt (as they sold it) or they collected on the debt, they don't need and sometimes don't respond to communication received on a closed accounts. Generally, these are the items which are removed from the bureau. They don't get refiled as there is no longer a debt and/or someone else owns the debt and the process of filing with the bureau belongs to the new owner of the debt.
You mentioned "ex-husband" if this was from a joint account when you were married, you may not be succesful in having it removed. Although trying never hurt. If you were added as an authorized user, you can have it removed. If it was a debut during your divorce that was assigned to your husband, be sure to provide the court document showing how the credit was assigned to aid in your removal endevors. You may need to ask your husband how your name was associated with the account so that you will know how to proceed.
Having a mental disabity is not a qualifying reason to have debts erased under any law. Having a mental disability and living on SSI or other assistance would just mean that they cannot attach your income to pay off debts. (Unless you were to receive an initial lump sum payment, however, monthly payments cannot be attached). Credit card companies can make decisions on credit based on a soft pull, which means they had access to your credit score and some useful information which precluded the need for them to pull your credit. You may need to start with a reputable firm who offers secured credit cards to help you begin the process of rebuilding your credit. Please consider, that if you feel the mental disability should preclude you from paying past debts, it would apply to new credit requests as well.
If your score is 725 and you are maintaining management, you do not need to get a loan just to get a loan. It will add it to your accounts and it will have payment history, but why are you willing to pay interest on a loan 10-15% just for a few points. When the loan is paid off your score will decrease shortly and you'll be back where you are now. You stated that your accounts are a few months old. Just keep doing what you are doing and wait for them to mature. Then, when you have a true need for loan (IE: Auto, House) you will be in a better position.
Your bankruptcy which was paid in full will affect your credit for 7 more years (From the date of discharge). The collections on your account and missed payments on your account which led up to the bankruptcy will also remain for 7 years. You can start rebuilding your credit now if you were to get a secured credit card. Manage it wisely for the next 2-3 years and some creditors will look past all the bad in favor of how you manage credit now, after the bankruptcy. Not all, but some. Use this time to rethink your financial situation and start putting money aside for savings so that the next time around, you have something to fall back on.
Making the minimum payment on a credit card ensures that you are paying interest. You can save yourself between 17-29% if you were to pay these off. You should then rotate your credit cards so that you are only using one any given month that you pay off ever month as you are doing on your third one now. As long as you use them every couple of months, the accounts will remain open and help to build your average age of accounts. This will also substantially lower your credit card utilizaton which will also increase your scores. Then, take the $100 savings every month and work to pay off the collections. The collection accruing interest is your primary focus for paying it off. As soon as you can get it taken care of, use that same savings to pay off your other collections. A paid of collection looks so much better on your report than an unpaid collection. The actions you take today will have a big impact on your big purchase in the future. Too many people wait until they are ready for that purchase to start taking action. You have a head start, good luck.
You would need to contact each of the creditors to make arrangements for payments, you should not wait until they escalate. As a judgement reflects it went to court, that would indicate that actions could be requested/taken by that creditor which could result in immitediate payment in full and demand all of your current resource. The collections should be a focus before they become judgements or are rereported to your credit report. I would tend to the charged off items last as they are no longer reported on your report, although, the moment you begin payment, you restart the statute of limitiaonts and they can become active and can be reported it payment is not made as arranged.