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Hi,
I have a few collection accounts on my credit report related to unpaid credit cards in 2001-2002 due to a divorce.
Recently, I'm trying to repair my credit to get a business loan, but don't know where to start, knowing that the statue of limitations (4 years in Texas) is over for those debts.
Do I need to ask for debt validation after all this time, or just start negotiating with the collection agencies for a portion of the debt? What about the charge off notes from the
original creditors on my credit report. Will those be taken care of when I settle with the collection agencies, or is it a different story?
I would appreciate any guidance or reference you can provide.
cleaning
I can help send me and email have a few thoughts but need to know more info..joeymortgage@msn.com
Cleaning old debts
You can ask for a debt validation letter however, I guess it won’t be of any use now. It is better for you to contact with the CA and negotiate with them. If the collection agency accepts your agreement, then you can payoff your debt as per the agreement. As the SOL has expired, so the collector has no right to file a lawsuit against you. If you want to remove the charge-off account from your credit report, you may request the collector to remove the charge-off account from your credit report after repaying the debt and update your account status as “Paid-as-agreedâ€.
You have to request for the debt validation so that all the previous debts can be removed which lay there year after year. May be you have to may some money to settle those collection accounts.
credit
(I give this advice alot!!) You might want to check your CR first and see how long the debts have been there. I don't know what the SOL is in the state where you live..you may want to find out. Usually, the SOL is 4 years on debts (after 4 years of the first deliquent payment, CA's can't sue you) and after 7 years (bad debt is suppose to 'dropp off' your CR). If you start paying on a debt after the 4 year SOL has expired, you will be 're-aging' the debt...that means you will start the 4 years over on the debt. On your CR there are 'fall off' dates next to each of your debts. If those specific debts don't 'fall off' within that date, you can dispute the CRA's and get them removed. I've done this with a few of my 'old' debts and it does actually work!! :) Good luck.