Posts Tagged ‘Collection Agencies’
collection agencies: how to tell whether it’s assigned debt or bought from original creditor?
June 3rd, 2011 | 
Author: J H asked:
if it’s asigned does that mean the offer to settle should go to the original creditor (ie Amex)? by the way debt is from business necessities, and business has been gotten out of–debt was unavoidable and not based on spending habits. trying to avoid bankruptcy and pay off. do they sometimes settle for payments or do they only want lump sum?
Create a video blog
Posted in Credit | 
Tags: Amex, Asigned, Avoid Bankruptcy, Business Necessities, Collection Agencies, Creditor, Lump Sum, Spending Habits | 
2 Comments »
What would the disadvantages be for one instead of filing bankruptcy, wait 7 yrs until bad credit clears off?
R P asked:
I know of a person who fell on some very hard times and now has let 8 months go by without paying on his credit cards. It appears that now some of the cards have written off his loan as bad debt, or have turned the delinquent accounts over to collection agencies. This person is unfortunately still so pennyless (and so in debt- close to $80,000 between a handful of credit cards) and he still cannot afford the legal fees to file for bankruptcy. At this point, since he is so delinquent on his credit cards, and his credit is already turned bad after being delinquent for 8 months, is there any reason to file for bankruptcy? He has heard that the bad debt will drop off his credit record after about 7 years, just as one’s record of going bankrupt would. Can anyone validate that this is true? Could there be any advantages for him to go through the bankruptcy process at this point? In other words, what would be the difference in his credit ultimately?
bankruptcy