If I send a letter to my creditor telling them that I'm willing to pay back my debt if they'll send back a written confirmation that they'll take it off my credit record, would that work?
Also, would that mean that I have to pay back the entire amount? Is that the only way to deal with judgments on a credit report?
2007-09-15 06:37:40 · 6 answers · asked by Anonymous in Business & Finance ➔ Credit
But once it's been satisfied, how can I get it off my record? Or do I have to wait till 7 years after it's been satisfied?
2007-09-15 06:45:42 · update #1
Does the Pay to Delete system happen often?
2007-09-15 06:47:31 · update #2
I also wanted to add. I'm in school right now and have no income whatsoever. Should I just wait till I graduate in 2 years with a job and then start contacting these folks? Meanwhile I should just lay low?
2007-09-15 08:20:15 · update #3
This is called a pay for delete agreement and if they do agree, do not send them a dime until you have it in writing.
2007-09-15 06:44:32 · answer #1 · answered by ? 7 · 1⤊ 0⤋
Be very careful with this one... Make sure you do not give them anything until you get a letter specifically stating they intend to "delete" the item from your credit bureau. Simply showing it as "satisfied" will reflect a paid judgment which stays on your report for 7 years. Since they already have a judgment against you it's really easy for them to garnish your wages if you have a job. If they know you have a bank account they'll start searching around and locate your account which they can levy against (take money out of your account). If you claim "financial" hardship they'll start searching for your accounts while you are "waiting for the letter". Next thing you know your account is at "zero" balance. I've seen this happen more than once.
First, take out all of your money from your bank account. Stick it under your mattress or have your mom/dad/brother whoever open an account (without your name on it) and deposit the money there.
Next, call the creditor and see if they will "delete" the item if you pay in full. It might be more difficult to pay less than what you owe and get it deleted. You can try though, offer them 25cents on the dollar and work your way up. Make sure you act like your almost homeless and "thinking about filing BK and have consulted with an attorney". They really like that one. Just tell them you're trying hard not to but you lost your job last week, landlord kicked you out, dog ran away, etc etc. If they ask about bank accounts tell them you don't have one (you only use check cashing).
Give the cash to someone else and have them write a check to payoff the account. On the back of the check write "By depositing this check you agree to delete XYZ item(s) from all credit reporting agencies for Jane Doe. By depositing this check you are entering into a legally binding contract. "
A check is a legal contract by the way but this for sure will hold up in any court if they try to trick you.
2007-09-15 07:57:59 · answer #2 · answered by Richard S. 3 · 0⤊ 0⤋
If your creditor has an actual judgment, they may not be so willing to settle for less than full amount. They can already attach your bank account, garnish wages, or lein your property. You would probably have to come up with a lump sum payment that covered most of the judgment amount.
If the debt is just on your credit report (no judgment), you have a better chance of negotiating a settlement at 50% or less (the older the debt, the less $$). In the written settlement agreement, you can ask them to remove the negative.
2007-09-15 07:56:14 · answer #3 · answered by bdancer222 7 · 0⤊ 0⤋
You may be able to settle with creditors for less than 100 cents on the dollar if you can convince them that you are unable to pay. The difference would be taxable income to you. When the judgment is satisfied, a satisfaction of judgment should be issued and recorded. Credit reporting agencies will eventually pick it up.
2007-09-15 06:43:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Many loans and credit card agreements negate this statement.
"On the back of the check write "By depositing this check you agree to delete XYZ item(s) from all credit reporting agencies for Jane Doe. By depositing this check you are entering into a legally binding contract. "
A check is a legal contract by the way but this for sure will hold up in any court if they try to trick you.
2007-09-15 12:38:41 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes, Pay to Delet works and it is worth the effort. You should be able to settle for less than you owe as well...check out this website...it give GREAT advice for settling your debts for less!
http://www.creditinfocenter.com/rebuild/
2007-09-15 07:31:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋