credit score

Submitted by jassica on Fri, 10/02/2009 - 17:29
Forums

have a small business, and unfortunately I have encountered debts that were sent to a collection agency. Can they go after my business and myself personally? I have explained my hardship with this economy, and would like to set up a payment plan to pay them off. Will my credit still be affected by this? And, if so, what is the upside on paying this debt

HI Jassica,

Yes, they can go after your business in case you are unable to pay them the debts. Legally, they can take away your assets to get the debt amount. Your business is an asset which could be readily liquidated into cash.

Well, if your credit report reflects "paid as agreed", the damage would be less, than when it reflects unpaid accounts or collections. So setting up a payment plan with the creditor is the best way out.

Sat, 10/03/2009 - 05:14 Permalink

You cna alwsy negotiate with collection agency and settle them for less. Normally they agree for lower than you owe

One way to gte rid of this woudl be is you cna file for bankruptcy but that woudl eb the last option

Sat, 10/03/2009 - 05:28 Permalink

Just wondering: can you get into some kind of Debt Consolidation program? Something that you can possibly do, without filing for BK (just a suggestion). If you are on a Debt Consoliadation/Settlement program, this will reflect on your credit. However....I think it reflects in a 'positive' way, because it tells those looking at your credit that you are trying to take care of your debts.

Sat, 10/03/2009 - 09:26 Permalink
Sally Nachelle (not verified)

Yes, a collection agency can go after your business and yourself personally. If you want to repay your debt, you can contact with a debt consolidation company and enroll in a debt consolidation program. This program helps you consolidate your debt and make one single monthly payment instead of multiple payments. Your account status will be updated as “Paid-as-full” after you have repaid debt. So, it is better to repay debt on time.

Wed, 05/25/2011 - 12:50 Permalink
Shopat (not verified)

Well, you can get a loan, although it will be dilcfiuft to say the least. any loan you may get will undoubtedly have a very high interest rate. You may have to have a co-signer to the loan if you are unsuccessful in getting a mortgage by yourself. Your best bet is to start repaying the loans to get your credit score back up, or you can have most older debts (7years or older) removed from your credit report with no penalty. these steps will help you to raise your credit score and make it easier to obtain a loan at a lower interest rate.Also beware of loans that you may get with your current credit score, aside from high interest rates, you may only get offers for variable rate loans, which are in this market a very risky move. If you do decide to get a loan, making on time payments for at least a year straight will raise your score and allow you to refinance your loan at a lower rate and save you money in the process. hope this helps you out some.

Fri, 04/12/2013 - 01:12 Permalink