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Question
Recently I have applied for a refinacing of my home to reduce some debt so I can actually live with my 3 children instead of at work. I have fair credit only because of my available credit is max out. this is only 2 credit cards in the amount of $3500. And I have about $6000 in medical collections! I was not really aware of this, We have allways been coverd by some sort of insurance. but the doctors waist no time in writing this off to a collection agency. most of this collection was from 2000, and from what i understand, will come off of my report in 2007 (January, per a Trans Union report) however, the lender (refinancing my home loan)says i have to pay this with my new loan, and that the medical collections will never come off. until 7 years AFTER i pay in full. Now, my question is, I have read the fcra and I just need to know, if this old medical bill comes off my report, could they sell it to another collection agency and put it back on? I have worked hard to bring my credit report up, no late payments in almost 10 years! I have raised my children by myself and medical bills have left me in a situation if i pay, then it will show paid charge off or late but if i dont will it simply disapear? I am not intentionally trying to not pay what i owe, but this is a matter of paying an old bill that has hurt my credit report for 6+ years costing me $, OR affording school cloths even groceries! this extra 6000 dollars on my loan will make my payment higher, and they insist the medical collections will never come off unless i pay in full. Is this true?
Thank you in advance,
Jennie
Florida
Not true - but what you should or should not do at this point is another matter.
Don't make any payments just yet until you get this resovled. Sometimes paying is the worst thing you could do in terms of your overall credit report. for example, if yo make a payment now, the seven eyars will start all over again. However, this idea that you have to pay it off before it is removed is not accurate.
This would be easier to talk about on the phone. I will not charge you just to talk on the phone and we could discuss this in more detail. 214 779-3427
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Answers by Expert:
John Hall
Expertise
Law school graduate, Juris Doctorate (J.D.) Degree; Over 25 years of experience throughout the United States in bankruptcy law matters (Chapters 7, 11, and 13 of the United States Bankruptcy Code) primarily representing individual debtors with consumer debt or small businesses; Experience has included all aspects of debtor/creditor relations.
Experience
FREE BANKRUPTCY HELP. If you are being sued, if your home is being foreclosed, or if you are being harassed by bill collectors, filing for bankruptcy may be a quick and inexpensive solution.. The mere filing of a bankruptcy will operate as a federal court order (it is called an automatic stay) to stop all bill collection efforts, including lawsuits that are pending or ongoing. Bankruptcy is a legitimate way to meet your problems with debt head-on. The bankruptcy law is designed to give you a second chance to make a new start without the psychological and financial burden of pressing debts that you are unable to pay. Depending on what state you live in and what your assets are, it is very unlikely that you are going to have to lose anything if you file for bankruptcy, and this is something that you can do immediately without having to pay the $500 to $1,500 attorney fees that most attorneys charge. Also, you might be surprised that you can file for bankruptcy and that it will not have the devastating effect on your credit that most bill collectors describe. Life is too short to have all this anxiety over losing your car through repossession, getting evicted from your home, or losing your home through foreclosure. Bankruptcy law was designed to give you a second chance. I will not charge you just to talk on the phone. Call me at 432 853-5711, or send me an email at j_h14@hotmail.com with your telephone number, and I will call you back.
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