credit collectors writing debt off as tax . . .?

Question

Just found out that I have a $600 bill collectors have been after for 7 years (actually my husbands). He tells me that after 7 years it will be cleared off his record. yes, but they are just going to write his bill off for taxes and write it into his credit report. I keep telling him he needs to pay it off before then. My question is, would it matter on paying it off or just having them sign it off? We don't have this extra $600 laying around. I just don't see the system putting it your report and not having penalties. Can some one please point me in the right direction so I can finally start getting his credit in line.

If you are able to send me to a link so I can read for myself and show my husband it can/can't hurt his score that would be extra helpful.
Thank you

so I am pulling his credit report to find out what ALL charges he has pending and no we haven't paid any of them in the 4 years we have been together. I have been trying to clean up his report since we meet. Can I handle the collectors if I have all of his info? If so what info do I need to talk to them besides his SSN? Again Thank you for your help!

Answer 1

The original creditor wrote that debt off THEIR taxes long ago. The debt has been sold to a collector (probably been thru several).

Negatives fall off your credit report 7 years and 180 days from the date of last activity (DOLA) which is the date the account became delinquent, never to be current again. The debt cannot be re-aged back onto your credit report.

At this point, it is probably unlikely the bill collectors will take him to court for $600. They could but chances are the debt is also beyond the statute of limitations (SOL) -- varies from state to state. SOL is an affirmative defense if you go to court.

Basically, you can just let this debt fall off and disappear. Of course the moral thing to do, is contact the collector and make a settlement offer.

Answer 2

If this debt is over 7 years old, they cant even collect. Is this on his report? The first thing you need to do is pull his credit reports from all 3 bureaus at annualcreditreport.com
its free as required by law once per year. See if this is on his credit. If it is, look when it went on. It cannot stay on for longer than 7 years from the date of first delinquency, UNLESS you make a payment! If this is on his report and due to fall off in a month, and you make a payment, you just re aged the account. It can then stay on for 7 years from the date of last activity, meaning 7 years from now! Do yourself a favor and see if this is reporting and find out the exact date of this debt. Do not pay anything until you investigate this debt!
As a side note, once you have those reports you can dispute online with all 3 bureaus. It's very easy. Remember anything that is incorrect, outdated or unverifiable must be deleted from the credit file. The unverifiable is the loophole. A creditor has 30 days to respond to a dispute. If they do not respond then the disputed item must be deleted or updated as you specified. Be persistent. If you need any help on your credit repair pursuit, you can email me through yahoo answers. Good luck to you!

Answer 3

With most debts that are charged off on your tax record, they should only stay for 7 years. You can dispute this debt on your credit report. If they don't respond within 30 days they are supposed to remove it. If you do decide to pay it off, it will remain on your credit report for a little bit longer but it will be more favorable because it will show as being paid off.

Answer 4

check on creditinfocenter for Statute of Limitations for your
State, then write the Company a validation letter. Even
if it is discharged, you have junk debt buyers constantly
purchasing old debt and will be easier to keep a copy
on your computer and just change the names. Debt Collectors are supposed to give you 30 days to dispute
before adding onto your credit report. So you print a letter
send it off and then they can't validate it, so it won't go on.

Answer 5

let them write it off the debt is probaly over your states statue of limitations, and it should not hurt his score but pull his credit report and if they did something funny then you can sue them for re aging the debt. Reporting to the IRS is one of there tricks they do pull out of the had, but i have found them too lazy to do and after all. BTW these folks probaly bought this for 5 bucks, so they would report 5 bucks to the IRS. where the orginal creditor already worte i off. check the following link out about creditors.

Answer 6

Read the 5 misconception people have about their credit. This, you can show your husband. Your credit history will follow you unless you can live without credit.