Who is best professional to advise on how to clean up old and neglected consumer credit?
Posted in Credit on 09/29/2008 06:35 am by admin
Delay asked:
I have a friend that needs to clean up debt. Before charging off to be a hero and completely opening a can of worms on her poor soul by referring her to any joe shmo I wanted to ask. I need to ask because cleaning up credit debt that has lay dormant for years is a tricky situation. The debts have been sold off and as soon as you make contact with the collection agencies all of a sudden the clock starts again and all he// breaks loose.
I have a friend that needs to clean up debt. Before charging off to be a hero and completely opening a can of worms on her poor soul by referring her to any joe shmo I wanted to ask. I need to ask because cleaning up credit debt that has lay dormant for years is a tricky situation. The debts have been sold off and as soon as you make contact with the collection agencies all of a sudden the clock starts again and all he// breaks loose.
So…we have BK lawyers, credit counselors, financial advisers,etc so which ones are going to truly assist credit debt payoff strategy and report cleanup with my friend’s best interest at heart?
Thanks for that…but I disagree. Clearly I am the person to help initially by researching who the best person to go to for advise would be – and then forwarding said information to friend for review. You appear more knowledgeable on the subject than me – great. But you still didn’t answer the question.
JOHNATHAN
10/01/2008 at 8:57 pm
Certainly you are clearly not the one to help because you haven’t a clue with statements like “starts the clock over” without saying what you mean by the statement. Certainly if you agree to make a payment, in some states, that does start the collection SOL again but the reporting length with the Credit Bureaus is 7 years from deliquency.
There is nothing tricky at all, you pay the debt and then wait while the negative slowly fades away. You can try and make deals with the creditors to take less than face value of the debt and then that will hurt too.
10/05/2008 at 1:01 am
Her best bet is to contact the local Consumer Credit counseling Service. They’ll help her set up a payment plan and budget. Be careful of imitators as many are con artists who will take her money and leave her still in debt.
The good news is she won’t “restart the clock” just by contacting the creditors, although they may take it as permission to contact her! (As in several times a day). Only when she actually takes action on an account (makes a payment or purchase) does the clock reset.
10/05/2008 at 5:38 pm
first of all be aware that something (other than bankruptcy) can only stay on your record for a period of 7 years…so if 5 years have already passed you are better of just leaving it alone…otherwise you start it up again..make payments then it will stay again for 7 years…be careful
10/06/2008 at 11:52 am
The only professional who is answerable only to the client is the lawyer, preferably one who has bankruptcy experience. Credit counselors are often created and owned by a credit card issuer. They also, along with financial advisers, get paid according to the amount you pay the creditors, not for the services rendered. That’s a built-in conflict of interest.
There are a few credit counselors, now approved by the US Trustee’s office for each state, available online at your local bankruptcy court web site or the UST’s website under the US Department of Justice (first.gov).
The statute of limitations does not start over just because the debtor contacts the creditor; there has to be more, such as a payment or payment offer, or having been out of the country or state (if a local creditor).
Your friend should begin by getting the most recent copy of all 3 credit reporting bureaus’ reports (annualcreditreports.com) (NOT freecreditreports.com, which is a scam). You get a free one every year. Review those for accuracy. Challenge any that do not look right.
Then go to the lawyer.
10/09/2008 at 7:30 am
Without a doubt, the best person to get involved in a credit lawyer.
Credit Counseling can actually hurt your credit, I would avoid them if possible.
A lawyer may SOUND expensive, but it doesnt have to be. Lexington Law is a highly successful firm that will do ALL of the work for you in cleaning up your credit…and they are only like $39.
This link will take you to their website:
Good Luck!
10/11/2008 at 10:15 am
Just consolidate and clean up and pay it off. I know it ***** but its allot of red tape and costs allot for someone to do credit repair. Try prosper its pretty interesting. Good Luck!
10/12/2008 at 4:47 pm
You dont need to go anywere or pay anybody … You can do this yourself and it may take time and most offening it take 3 to 5 letter to get this removed no matter what on your credit report… it took me 8 month and i removed $80,000.00 of my credit report free of charge and i paid nobody… why pay when you can do this yourself.. if you would like the paper i used please email me @ i will send you everything free of charge like i said before it not a quick fix nor can any company get you a quick fix but i will tell you it take about 8 months and you can do it yourself and get your credit score up and the bad stuff removed by yourself.. thanks
10/15/2008 at 8:20 am
You are on the right track by suggesting the involvement of a 3rd party. If your friend started inquiring, the agencies would be all over her like sharks on blood. They typically behave better if a debt settlement company calls. Said company could settle out the debts for likely 50 cents on the dollar or less. I suggest your friend review the free evaluation form at the source website. My aunt used them with real success. They can help. Good luck.