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My husband and I had to file Bankruptcy last year. I'm really trying to focus on rebuiding my credit so we will be able to buy a house. One of the loans that I tried to inclued was non dischargable and it's reflecting a charge-off on my credit. I want to do the right thing and pay it off but they said they will not report to the credit agency that we've worked out a payment plan. I asked if they would settle and they said they would only settle for 85% of the debt which is still more than the initial loan amount. I don't know what to do and it looks like the way things are going we will never be able to get a house. What can I do?
Hello Guest, Really you almost will have to resolve the debt regardless of whether they work with you concerning the credit agency or not unless the debt is past your states SOL. It is up to them what they report but if you can still be sued for the debt it is best to set up the payment arrangements. You could get in writing the agreement between you and the collector. This way you would have proof of the agreement and if you did apply for credit somewhere you could show the agreement and your payments. Others may have other ideas so check back on your post.
pay-off
Hi Guest,
You will obviously be able to buy a house but before that I'll advise you to first settle the debt, though you may have to pay more than the initial loan amount. But prior to negotiating a settlement, request the creditor to sign on a pay for delete agreement. With this, the creditors will remove all information about the account from your credit report.
However, if the creditor doesn't agree to remove the account information, you should request him to update your account status as "Paid in full" or "Paid as agreed". This will minimize the negative effects of debt settlement on your credit score.
As for getting a loan, I d'nt think it'll be easy for you right now as you've filed a bankruptcy last year. So, you'll have to wait for at least 2-4 years in order to qualify for credit at favorable interest rates.
Thanks