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Fri 25 Mar, 2011 05:30 pm
Here's the scenario:
sick wife, medical debts, car repossessed, credit cards not paid.
all this happened 2 - 4 years ago.
no dunning letters or phone calls for over a year.
Should this person contact credit card people NOW and offer to pay up?
If he does, will it raise up his credit score? What will be reflected on his credit report differently, at this late date?
He was thinking about working with a credidt counselor, but they get a cut, too.
@PUNKEY,
I don't know how they work their systems, but it sounds like a good plan - if possible. On the other hand, I might give priority to those who can cut off services or are threatening legal action.
If the guy is making minimum payments including interest payments, that might not hurt at all.
I guess what I'm saying is, "I just don't know".
I wish I had good news for you but when I sold my old house and used the proceeds to buy a new one and new car, I also went to see a bankruptcy lawyer, not to declare bankruptcy, but to eliminate all debts, including a fake one and one that could not be tracked down.
While the fake -- a debt I never had as I never possessed a credit card -- stopped dunning me after the lawyer spoke with the company, the same collection agency started again.
As for the debt that could not be tracked down, it was Verizon. My son was going to share the cost of the cell phone with me, then never did. I left it to him to pay the final $200 of the contract at a time when my earnings were very low. Verizon closed the account. The lawyer found nothing. Two years later, someone started dunning me. My feeling is that this firm bought the debt, they can chew it for eternity.
That is a concern.
Everything is quiet for now.
His wife passed away in '09. So there is a $1200 medical alone for her.
The CC bills are a little over $3,000
A car loan, after auction, may be $5,000.
But no one is calling.
Let sleeping dogs lie???
He would like to buy a car.
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