If I have charged off credit cards that were purchased by a debt buyer, can I still go through?

Question

a debt consolidation company?

Answer 1

You can, but remember that Junk Debt Buyers buy charged off debts for pennies on the dollar.

You could try to negotiate a settlement with them on your own for maybe a fraction of the original debt.

Good Luck.

Answer 2

Yes you can, and there is increased leverage to have the debt settled for less. Basically, your original creditor "gave up" on you and sold the rights to collect your debt for pennies on the dollar to someone else and wrote it off.

Lets say the company the bought your debt paid .45 for every 1.00 you owe. If you offered them .65 for each 1.00 with the condition that they remove anything bad from your credit file, they'll probably jump at it.

Please keep in mind that your original creditor will not remove negative information about you, so it's by no means a clean slate, but you can regrow your finances.

Try calling the company yourself before getting into debt counceling, as you're actually in a better situation than you think.

Answer 3

I am a certified credit conseler for a non profit organization, part of we do is debt consilidation, financial counseling and education. The key to your question will be to pull your credit report to find the age of the accounts. Often times, as stated by another answer, old debt will be bought in the hopes to make money. There are also statues and laws that state that collections only have a certain time to collect the debt, if they do not collect within that time frame your obligation to pay the debt may be gone. However you can, by accident, renew the debt by acknowledging you owe the debt, be careful.

If you decided to settle the accounts there things to be aware of.
1. It can be on your credit report as settled account not paid as agreed, unless you can get the company to state in writing that they will report it as paid as agreed.

2. Settled accounts can be on your credit report for up to 7 years.

3. Under current IRS regulation if you save 600.00 or more on a settled account you will be tax for it. They consider it as earned income.

Another way to handle these is to dispute.

If you feel you do not owe this debt, for whatever reason, you may dispute it through the credit reporting agencies, Experian, Transunion, and Equifax. They will investigate the debt 30-45 days later you may get a response saying that it is or is not a valid debt. If it is not a valid debt or they contact the company and they can not trace the debt, than it can be removed from your credit report and your financial obligation is over.

If you decided to Conslidate the debt be careful who you
work with. Do not go with a company who will settle the accounts, that is something you can do on your own, having a company settle for you will put you further in debt and the fees they charge are high.

You want a company registred with the BBB, you are also looking for a debt management program. With this you will pay back total amount owed but with a monthly payment. This is something my company can help you with if you wish.

There are also some good books on the market such as Money Troubles by NOLO and Credit Repair By NOLO.

If you have any further question feel free to e-mail me at [e-mail]

Answer 4

I would imagine, since you still have debt.

Watch out though, there have been many complaints about these debt consolidation companies.

Your better off trying to figure it out yourself.