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creditrepair2019

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  1. Not enough information is given. There are a lot of potential factors. (1) What does the card user agreement say? Does it provide a forum state whose law applies? (2) In the absence of #1, where were you domiciled when the card was opened? Where were you domiciled when the card was last used and closed?
  2. I agree with this especially if they have other debts of yours. It is a well known trick used by collection attorneys to find where you bank so they know where to garnish later if there is a judgment against you. You could also sign it over to a relative with a different name to deposit for you and give you the funds once cleared.
  3. Some collection agencies buy the debt and function as junk debt buyers. Is this the case here? If so, then the Fair Debt Collection Practices Act might not even apply thanks to a fairly recent SCOTUS decision. See Henson v. Santander Consumer USA, Inc., ___ U.S. ___ (2017).
  4. This is truly your best bet. I wish you the best of luck!
  5. Also, in your loan application you will be asked about your outstanding obligations regardless if they show up on your credit report or not. Lying is a form of bank fraud.
  6. You can try to settle it, but the judgment is going to stay on your credit report. Is this the only blip in your credit/financial history or how does everything else look?
  7. Yes. It takes one year, and trustee/court approval is usually required. In instances like these, especially where buying is cheaper than renting (as she states in the other thread), approval will be granted. These are issues she should discuss with a local attorney who is familiar on a day to day basis with the local chapter 13 trustees. A lot of chapter 13 is governed by local practice and custom. And, I agree that if she can negotiate a settlement and negotiate the deletion of the trade lines permanently that is a superior option. I just don't want to see her in a situation where she pre-qualifies and goes through the entire process and the deal falls through at the end. She could be left without a house and without her earnest money deposit.
  8. If you and the property are eligible, USDA and VA loans are 0% down payment options.
  9. If it becomes an impediment to getting a loan, see if you can rehabilitate the student loans.
  10. If I read your initial post correctly, you are under water on the mortgage and by a large sum. If you cannot afford it anyway, it is best to cut your losses.
  11. You need to speak to an experienced loan officer before any hard pull to your credit file. Some lenders are difficult, and some times people have problems refinancing or obtaining equity lines when they use the "ride through" (i.e. your personal liability is extinguished in the bankruptcy, but the lien remains and you continue to make payments to keep the collateral) on mortgages and other secured property.
  12. A paid charge-off, unless deletion is negotiated with the creditor, will still report adversely and affect your credit score. Credit repair strategies like those posted in other threads are a mistake in a case like this IMHO. You have so many accounts and there are decent odds that one of them will come back to bite you. Using the credit repair strategies here, you may very well get some or all of the trade lines deleted, but they could reappear after pre-qualification but before your closing. That will delay your closing and could prevent you from closing at all after you have gone through the entire process. Many creditors will sell to a junk debt buyer after the SOL expires, and they will park nuisance trade lines on your credit report. You might get them removed, but disputes take at least 30 days. After this happens once or twice, your seller is going to walk away if he/she didn't initially. You should investigate the possibility of settling and negotiating the deletion of the trade lines. Alternatively, consider chapter 13 bankruptcy. You can qualify for a VA loan during the chapter 13 itself after one year of successful payments. It removes the problems and uncertainty of reappearing charge-offs and it resolves the debt. It is not something I would take lightly or recommend you do haphazardly, but I know people who struggled with debt for years that were only able to qualify after a bankruptcy.
  13. If you are successful in having a trade line deleted, it could reappear after pre-qualification before closing and prevent you from ultimately qualifying and closing on the house after you go through the rest of the process. Alternatively, a junk debt buyer will buy it and park another negative trade line. Either way, it can stop or delay closing. You should investigate the possibility of settling and negotiating the deletion of the trade lines. Alternatively, consider chapter 13 bankruptcy. You can qualify for a VA loan during the chapter 13 itself after one year of successful payments. It removes the problems and uncertainty of reappearing charge-offs and it resolves the debt. It is not something I would take lightly or recommend you do haphazardly, but I know people who struggled with debt for years that were only able to qualify after a bankruptcy.
  14. And if you do, you may very well end up with a 1099-C for the $8,524 write off. You may need to pay federal income tax on that amount depending on whether the IRS deems you solvent or insolvent. In a bankruptcy filing, it is guaranteed that you will have ZERO tax liability for it because it was discharged in bankruptcy.

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