Posted on: 25th May, 2007 01:19 pm
I am single mother of 2 children and looking after them with no help, 8 years ago I filed bankruptcy, since then I had been doing well but few last years due to some problems started falling behind on bill payments. Kids are growing up and I am looking to purchase a house but having problems with that because of my score which is quite low and lot of debts showing on the report. Through a finance co I has purchased a car and always been regular with the payments also the same with the mobile home I had purchased. I want some help on how to begin correcting these debt problems and to get the bad collections off my report by paying them off. If I do then how long it will take to improve the score. I am working full time and want to start working on it. Any help will be valuable for me.
Hi Margulies,
First of all start by verifying status of all the accounts listed on your report. You need to be aware that negative items automatically drop out from your report after 7 yrs. from the date when you first become delinquent on any account (this is called statute of limitations). If you see any such accounts listed on your report then dispute those with the bureaus to have them removed. You will improvement in your score after some time.
If the accounts have not crossed the SOL time period then contact those companies and try to make out a payment plan. Most companies are willing to agree if your offer is realistic enough and you continue with it.
Niicss
First of all start by verifying status of all the accounts listed on your report. You need to be aware that negative items automatically drop out from your report after 7 yrs. from the date when you first become delinquent on any account (this is called statute of limitations). If you see any such accounts listed on your report then dispute those with the bureaus to have them removed. You will improvement in your score after some time.
If the accounts have not crossed the SOL time period then contact those companies and try to make out a payment plan. Most companies are willing to agree if your offer is realistic enough and you continue with it.
Niicss
One thing you should is that any collection agency cannot sue for accounts which have past the SOL time period but they will remain on your report up to the time the reporting period for those entries is not over.
R. Mead
R. Mead
can sending a goodwill letter to creditor help in removing the negative reporting?
Hi Kerr,
Welcome to Mortgagefit discussion board.
Sending a goodwill letter will work or not depends on the situation you are in and the company which is receiving it.
By sending a goodwill letter you request your creditor to change how the account is reported out of goodwill and by kindly considering the financial difficulties you are facing.
In the letter you state why your payments were late and request them to stop reporting the account negatively to the bureaus. You also try to convince them with your letter that you have always paid your dues on time and on that basis your request be accepted.
It is worthwhile to send such letter to the creditor and might work for some of your accounts on which you are behind on payments.
Do let me know if you have any other questions.
Thanks
Blue
Welcome to Mortgagefit discussion board.
Sending a goodwill letter will work or not depends on the situation you are in and the company which is receiving it.
By sending a goodwill letter you request your creditor to change how the account is reported out of goodwill and by kindly considering the financial difficulties you are facing.
In the letter you state why your payments were late and request them to stop reporting the account negatively to the bureaus. You also try to convince them with your letter that you have always paid your dues on time and on that basis your request be accepted.
It is worthwhile to send such letter to the creditor and might work for some of your accounts on which you are behind on payments.
Do let me know if you have any other questions.
Thanks
Blue