just getting back on my feet

[jessej]

about 6 months ago i lost my job. I decided to start my own business but i wasn't prepared financially. it took a couple of months before i was generating any income. i had 8 revolving accounts, a car loan, furniture loan, and another small loan. All the revolving accounts were pretty maxed out, the largest being $2000, with a total of about $6000. I was not able to keep up. Obviously I had to pay my rent, power, etc. I was able to keep paying the car loan, furniture loan, and the small loan. I think i went past 30 days once on each. I was not able to pay on any of the revolving accounts. I know my credit is being destroyed by this. I'm just wondering where to start. If i pay off all the bad accounts I will still have bad credit, right? a friend is telling me id be better off going bankrupt on those accounts and starting over. My business is finally turning the corner, and i want to figure out my best option. Its looking like i will have extra money to start paying things off just don't know if its worth it if i'll still have bad credit. what should i do?

[Trish]

Hi jesse...... Welcome

I'm not so sure a BK would be your best option. It may be really overwhelming but I've always thought of BK as a very last resort when all else fails. So......before you consider that.......see if you can repair and/or remove the accounts that are negatively reporting first. Especially since you are back on your feet and able to start paying on some.

Have you gotten your CRs yet to see exactly how everything is being reported? If not, you should go directly to each CRA (either by phone or online) and purchase a report. You can request them by mail but it just takes a bit longer.

Your first step really........would be to opt out.
Then once you get your CRs, update/delete any or all of your personal info. This will help you for your future disputes. You don't need ANY personal info on your CRs except for your name and your current address. Everything else should be disputed (if you want to do this quickly......you can do it online or by phone.....but that's really the only time I would advise disputing that way. All other disputes should be by mail).

Then while you are waiting for your personal info to be update.......read as much as you can......get familiar with the credit repair process and then start triaging your reports. Figure out what your plan of attack will be.

Of course be sure to stick around and ask any time you have a question. We are all here to help.

That should hopefully give you a place to start.

[jjgross]

Originally Posted by Trish

Hi jesse...... Welcome

I'm not so sure a BK would be your best option. It may be really overwhelming but I've always thought of BK as a very last resort when all else fails. So......before you consider that.......see if you can repair and/or remove the accounts that are negatively reporting first. Especially since you are back on your feet and able to start paying on some.

Have you gotten your CRs yet to see exactly how everything is being reported? If not, you should go directly to each CRA (either by phone or online) and purchase a report. You can request them by mail but it just takes a bit longer.

Your first step really........would be to opt out.
Then once you get your CRs, update/delete any or all of your personal info. This will help you for your future disputes. You don't need ANY personal info on your CRs except for your name and your current address. Everything else should be disputed (if you want to do this quickly......you can do it online or by phone.....but that's really the only time I would advise disputing that way. All other disputes should be by mail).

Then while you are waiting for your personal info to be update.......read as much as you can......get familiar with the credit repair process and then start triaging your reports. Figure out what your plan of attack will be.

Of course be sure to stick around and ask any time you have a question. We are all here to help.

That should hopefully give you a place to start.

You might be able to find out if they have a hardship program.If not you should try to tough it out.You might not pass the bk test.Plus your looking at 1000 dollars plus to file bk.If you can work at on some a payment plan that you can live with.By the way if you file bk list everything because the bk is going to take a hit on your credit score anyway.Been there done that.

[jessej]

do you mean dispute the personal information or the accounts? i will get my CR soon. I've just opted out. do you dispute the accounts you owe or just real mistakes that may be on there? If I begin paying off my delinquent accounts will they be removed or still hurt my score for 7 years?

[jjgross]

Originally Posted by jessej

do you mean dispute the personal information or the accounts? i will get my CR soon. I've just opted out. do you dispute the accounts you owe or just real mistakes that may be on there? If I begin paying off my delinquent accounts will they be removed or still hurt my score for 7 years?

If there charged off than its going to stay for 7 years once you make a payment it resets the sol clock,so you would have to keep up the payments

[Trish]

Originally Posted by jessej

do you mean dispute the personal information or the accounts? i will get my CR soon. I've just opted out. do you dispute the accounts you owe or just real mistakes that may be on there? If I begin paying off my delinquent accounts will they be removed or still hurt my score for 7 years?

Dispute all personal info first. You want to get as much deleted as possible. Then once you get that taken care of you can move on to disputing the accounts.

Accounts can be reported for 7 years from the DOFD (date of first delinquency)......even if you pay them off. So you have to either try and make arrangements for a "pay for delete" or dispute them off. They won't fall off on their own once you pay them.

Oh.....and just an FYI........paid accounts such as collections or charge offs will not help improve your score. A paid CO or collection still looks bad. You will need to either try to get them deleted or get the company to update the account as PAID with no notation of a charge off.

Oh.......and just in case it helps......I just posted a step by step guide to maybe help you and others see where to start and how to get it going.

Basic Step by Step Beginner's Guide to Credit Repair

HTH

[Trish]

Originally Posted by jjgross

If there charged off than its going to stay for 7 years once you make a payment it resets the sol clock,so you would have to keep up the payments

A lot of people believe this........but it's just not true. Making a payment will not reset the SOL. There are only a couple of states where this is allowed.......and even then you would have to enter a new agreement or contract for it to actually reset the SOL.

[jjgross]

Originally Posted by Trish

A lot of people believe this........but it's just not true. Making a payment will not reset the SOL. There are only a couple of states where this is allowed.......and even then you would have to enter a new agreement or contract for it to actually reset the SOL.

So the sobs at cb lied to a senior citzen i thought it covered all states.That's good to know.Learn something new everyday.:D

[Trish]

Originally Posted by jjgross

So the sobs at cb lied to a senior citzen i thought it covered all states.That's good to know.Learn something new everyday.:D

You can't believe everything you read on forums. Any advice you get......try and check it out for yourself. Granted a lot of it is probably true.......but I have come across bad advice myself. It's always good to research yourself so you can verify it.

[jjgross]

Originally Posted by Trish

You can't believe everything you read on forums. Any advice you get......try and check it out for yourself. Granted a lot of it is probably true.......but I have come across bad advice myself. It's always good to research yourself so you can verify it.

Yeah i know now if you leave a state before the sol is up and you have 3 years left,i thought it froze in that state until you move back?:confused: