Can I just wait out my bad credit?

Question

I have really bad credit, from a divorce three years ago. I aquired all the bad debt, and non of the stuff! I have a repo, and a ton of old dilinquent accounts. Can I just wait them out, or should I start the ten year process of making them right? What will happen if i just keep refusing to pay?

Answer 1

You see, this can be a tricky question. After seven years things like charge off accounts, or repos will come off your credit, so by waiting a few more years your credit will improve. HOWEVER- just becuase the debt itself was from seven years ago does NOT mean that after seven years the item will fall from your credit report. If, three years later, you still have collection agencies and lawyers actively looking for payment, that will be on your credit report still. Until they don't report in on a monthly/quarterly, etc basis to the credit bureaus it will remain there, meaning it can be a lot longer than even the seven years. So, it might be in your best interest to work out some sort of payment plan with them. Usually places will be okay with working out a payment plan of a very small amount, or compromising on one lump sum payment, even if it's only half of the total amount due, and will then write it off your credit. So, even though waiting might sound better at first, it probably isn't.

Answer 2

depends on the amount you owe each creditor. If over $1,000 (at one place) they will attach anything you own (a house, a car, a boat) and even could attach it "after" you've gotten on your feet because you will always still owe it even if it has been charged off and they've gotten their tax credits on it. If you have a repo it may be difficult to get another or a new vehicle for 7 years till that comes off your record. Remember that each time you check your credit report that updates your inquiry so that 7 years can go on forever being 7 years as it's 7 years from inquiry date, not 7 years from the date the item was put on your report.

If your'e working and can afford to start making payments, write those companies and say you want to repay them in installments. Usually they will say pay it all at one time. If it's under $1,000 then let it drop. You tried, they wouldn't take your monthly payments. ok?

Then yes, wait them out the 7 years, time goes fast. during which time you can save money for your new venture.

The only reason a person should ever go bankrupt is if their medical bills have become over their head (over $65,000) and they can't afford food, housing and medication anymore..

Answer 3

It's a 7 year stint on your credit report. You could wait it out if you wanted. It's still possible to buy things with damaged credit. If you personally have acquired small debts say of between 30 and 100 dollars you might want to pay on those if you can. It would raise your credit score.

Answer 4

It depends on where things are at in collection. If you get sued, you will be held accountable by the court. If the debts are in outside agencies, it is possible to wait them out. I did that...it's seven years for negative information, but you have to watch your credit reports carefully and make sure that things are removed when they should be. Some agencies like to "up" date claims so they stay on longer, but that is an illegal practice. My advice: Try to be invisible - new phone, new mailing address, no new credit. Keep track of when the debts actually went to default, that's when the seven years actually starts (not when agencies decide to report it). Finally, remember that even after that time you are still obligated to the debt, but it's your credit report that matters most so keep that clean. Good luck!

Answer 5

Your best bet is bankruptcy. It stays on your credit history for 7 years from the discharge date but after 2 years you can get a mortgage. Also get a secured Visa or MasterCard right after the bankruptcy. That will start your credit off on the right foot.

Once you go bankrupt, all the other credit references are expunged from your record.
If you decide to hang in there then don't be surprised if you get sued. Once a creditor has a judgement against you then he has the power to garnishee.

Answer 6

Most, but not all debts will eventually expire, for a timeline for different forms of debt check out http://creditwisdom.blogspot.com/2006/09/credit-report-timeline.html.

It will be very hard to deal with the downside of bad credit for the next several years. I would never advise anyone to ignore thier debt but don't kill yourself either. Tackle whatever you can. Look at every account and decide how you will deal with each account be it pay it off or ignore it. Make a schedule/plan and know exactly what it is that you're looking at.

Answer 7

confident, I extremely have completed it. the superb thank you to restoration low credit is: a million) commit to buying issues you prefer (not element you prefer, or issues you think of you're able to prefer later) and sticking to this dedication. a) you're able to prefer a automobile, yet you do not prefer a Mustang -- and you useful as hell do not prefer a 2006 motor vehicle (with low credit) while there is someplace obtainable who has paid most of the depreciation on what became as quickly as a "sort new" automobile. 2) Wait out the 7 year time horizon by using paying all expenses on time without EXCEPTION and once you have effective wisdom of circumstances that avert you from paying your responsibilities -- call your lenders at contemporary to set up a artwork-out settlement. 3) advance a clever funds to regulate your flow of earnings and fee and persist with the funds religiously. extremely, budgets can particularly ease your daily financial judgements by using letting you spot why you are able to not very own loan family individuals money or purchase your newborn an Xbox. not something from not something --- leaves not something! and ultimately. . . Please comprehend that in case you have debts which you haven't any purpose of paying, yet could prefer to "wait out" -- you should comprehend that this sword cuts the two approaches. you have rights and so do the lenders! Your lenders ought to conceivably document a civil healthful against you for the quantity you owe in the previous the statute of obstacles expires on the debt you owe. So, in accordance with section 605 of the honest credit Reporting Act, the previous debt will drop out of your credit checklist 7 years from while it became first suggested antisocial. in spite of if, the courtroom judgment, ought to the creditor(s) prevail, will stay on your credit checklist for SEVEN years as properly. So, in case you duck the debt, you face the prospect that a judgment ought to be won against you and you will ought to attend yet another 7 years to get THAT JUDGMENT bumped off out of your credit checklist! amazing international, isn't it?

Answer 8

If you like putting your financial life on hold for FOUR whole years then go for it. Remember that is more than 1,200 days!!

Denial is a dish best served cold.

And you can't keep a good man down!

Answer 9

If you refuse to pay your debt, they can sue you or reposess your home belongings. It is very dangerous; they are very persuasive.

For more info:
http://www.freewebs.com/infosource100/credit/s1-dinkins.html

Answer 10

Pay them off or see a bankruptcy attorney.