So, you’ve got a debt. It’s old. It’s reporting on your credit report. It’s lowering your score. What the heck do you do?

Well, first off, that’s a fantastic question. There are a lot of options out there. Typically, for our clients, we determine how old the debt is. How do we find that out? Well, when we issue out correspondences to the bureaus requesting more information on the debt, our clients receive responses back from the bureaus. Those responses will tell us specifically how old the debt is. Additionally, we will find a bevy of more information as well, such as what the debt is for, if it is a collection account.

Based on the age of the debt, which is characterized by when the last payment was made (in most cases), we will determine whether or not the debt is ‘time barred’. Read below on more specific information regarding time barred debts:

Now, if the debt is in fact time barred, we have some leverage. A response from the creditor may read something like this:

If the debt is showing on your credit report, and it needs to be settled in order to qualify for a home, we can use the leverage of it being time barred to negotiate with the creditor. Basically, they aren’t getting their money, unless you work with them.

There are many outcomes when dealing with creditors, collection agencies and in general negative items on the credit report. If you are unsure on how to proceed, give us a call. We want you to have the best possible outcome!


Be well.

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