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Question By
anbm2222

2 Contributions
11 People Helped
What is the best way to handle accounts in collections?
I am slowly rebuilding my credit and I have 3 accounts in collections and I cant find definite information on the best way to handle them. CreditKarma says it has a low impact on my score. But my credit score in a year has only improved by 45 pts. Most of that is because I took out a secured credit card and my on time payments have reflected there. So should I wait for the debt to fall off (in about 1 year and a half) or set up payments? Also if I set up a monthly payment plans, would these accounts upgrade or will they continue to reflect as in collections until I pay them off in full?

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Top Contributor
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107 People Helped

No SOL for government debt

Helpful to 2 out of 3 people

I had a hospital bill 12 years ago at a state university medical center.   After no collection activity for many years,  I received phone call from attorney with collections agitating about unpaid bill.   I said it was way past  the statute of limitations.   He stated that since the hospital was part of state university,  there is no SOL for government debt.   I will owe the hospital until I die.   WHOA.   Don't get healthcare at a state university medical center unless you can pay off the bill.  Want a bill that is transferred to heirs after you die or money taken out your estate during probate? 

2 Contributions
2 People Helped

Re-aged accounts?

Helpful to 2 out of 3 people

I have noticed several re-aged accounts on my reprts, I have old reports showing original date negative status was reported that do not match current report dates. 

Any sugestions on how to attack this issue?

Reply by
jeanmarie2

4 Contributions
30 People Helped

If its past the legal time for them to be reporting it as a bad debt id dispute it if you have proof of the original date of its first missed payment i think thats whats they are supposed to go by

6 Contributions
8 People Helped

Settle

Helpful to 1 out of 2 people

Hello setting up payment plans keeps you locked in and can hurt more then help . They hold this debt and will continue until many years later . Settle with them usually they accept around twenty percent to settle of the amount you owe . 

1 Contribution
0 People Helped

What is the best solution???

I currently have a few credit cards that is past due on the monthly payments and a few other credti cards in collections. should I get current first on cards that i am only a month or two behind or should I pay off the ones in collections first?  Which one should I pay off first? or tackle?

Help please! 

1 Contribution
1 Person Helped

pay for delete

Helpful to 1 out of 2 people

Contact the CA and try to set up a pay for delete arrangement, meaning you pay them for deleting the collection from your report, but make sure to get it in writing before you pay anything. You can also try to contact the original creditor to pay off the balance and have he account removed from collections, which works best with medical bills. However, if you are unable to work out a pay for delete arrangement or pay the original creditor then you're better off just waiting for the collection to fall off, because a paid collection won't help your score.

1 Contribution
2 People Helped

Med. Bankruptcy?

Helpful to 2 out of 4 people

I have nearly 20000 in hospital and ambulance sects..would it 've wise to claim medical bankruptcy?

1 Contribution
0 People Helped

I got sued.

I had an emergency room visit that I was making payments on, and I misplaced my hsa card, which caused me to miss a,payment.
Then the hospital said, we are no longer going to accept payments .

Then a year or so later I get served papers saying if I don't pay I have to go to court.

Couldn't afford a lawyer, so I scraped up every penny I had and paid it, including their supposed lawyer fees.

Now I have a collection letter from a utility company for 400 something dollars.

I don't want to get served papers,again
But if I pay it or make payments, it's going to reflect badly on my credit.

And I was recently pre approved for a home loan, but haven't found a place yet.

Not sure how to go about this.

1 Contribution
0 People Helped

They say 7 years but...

The collection agencies kept reporting my debt as new and it took me 10 years to have them removed from my report. Also my credit score has never recovered completely. I wouldn't wish this horrible experience on my worst enemy.

1 Contribution
0 People Helped

I might sound stupid but....

How do I pay off my debt in collections? Like I’ve read all forums about putting all of it together, keeping in on paper, blah blah blah but I already know what to pay off. I’m just saying what website do I go to to pay off my debt? 

1 Contribution
0 People Helped

Payments

I️ have some collections accounts and closed accounts I’m in the process of paying off, but I️ don’t know if it would be better to pay them off with a settlement or make small bi weekly payments towards them until they are a low enough amount to just pay off. 

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