Should I try to pay it off, or let it expire?
By katsmeow1213
@katsmeow1213 (28717)
United States
April 4, 2011 12:02pm CST
I have 2 judgements on my credit report.. both are old medical debts. They are set to expire in 2014 and 2016. They are both rather large, $2,000 and $4,000. I wouldn't be able to pay them off until next tax season.. all I can do until then is make small payments.
Now, I'm concerned that making a payment on these debts, or paying them off will change when they expire. I'm told that making changes on your debts changes how long they can remain on your credit report. So if I make a payment, or pay them off, they can still stay on there 7 years from the time I make my last payment.
So I'm wondering which would be more useful to my credit score. Should I pay on them or just let them expire?
5 people like this
8 responses
@AmbiePam (85314)
• United States
5 Apr 11
I would try to make payments on them. It really doesn't look good. That's why when my parents went into debt because of my mom's medical bills they worked with the companies to come to an agreement on what my parents could pay them. Because it is definitely noticed by companies who take a look at our credit reports. And my parents did not want that on theirs.
1 person likes this
@katsmeow1213 (28717)
• United States
5 Apr 11
The only thing stopping me from making payments is the thought that making a payment will only make the judgement last longer. If I can have it taken down in 2 years without payment vs. 8-9 years with payments.. wouldn't it make more sense to just let it expire instead of prolonging the bad credit?
When we went to our credit union for a small personal loan, she told us it was the judgements stopping us from getting the loan. It doesn't matter if we're paying on them or not.. just having them on there stopped us from getting a loan. So how is that going to look when I go for a mortgage.. you know?
1 person likes this
@KrauseHome (36448)
• United States
7 Apr 11
Personally I have always heard that the Best thing to do with these, is to try and pay them off if you can. Contacting the people who actually have the Bills that are affecting your Credit is the first thing, and then see if you can set up some type of payment plan, or a Good payoff for them as well. I know from past experience myself it makes your Credit Score look better even if it is still listed there.
1 person likes this
@GardenGerty (157494)
• United States
7 Apr 11
Depending on who holds the note on the judgments, if you begin making payments, they may settle for a payment that is just pennies on the dollar. Then you could pay the whole thing off. They also may make you an offer to pay off a debt without you making payments.
@vhmehta (621)
• United States
4 Apr 11
I would want to make it clear that you should seek advice from a financial advisor about this problem.. I am just a normal person with some knowledge about the matter...
Firstly, I feel like if you can pay the debt you should pay it.
If the creditor who won the judgement decides to enforce payment, the next step is to file for Discovery of your assets. The judge can order that your assets be sold to pay the judgement.
They could take your paycheck and/or any money in banks. I would rather work out a payment plan with them and pay them slowly but steadily.
1 person likes this
@katsmeow1213 (28717)
• United States
4 Apr 11
My concern is not for my assets. First off, as mentioned, these are old debts. One is from 2006, the other from 2008. If they were going to come after me for payment they would have done so by now. I have no assets they can take aside from garnishing my wages.. and they have not done so yet so I'm not concerned.
My concern is for my credit score. I want to buy a house in the near future.. and if I have judgements on my credit report I will not be able to get a mortgage. Paying on these, as I said, will extend how long they can remain on my credit report. However if I do not pay on them, then one will disappear in 2014, the other in 2016.. then I will not have judgements on my credit report stopping me from buying a house.
2 people like this
@vhmehta (621)
• United States
4 Apr 11
Kat,
If your primary concern is only about credit score rather than moral obligation than my response is as follows:
If the creditors have not contacted you for so long the debt may have been written off. Yes your judgement should go out of the credit report after 7 years unless the creditors take another judgement (Which is highly highly unlikely but possible).
Remember the unpaid debt is sold in secoundary market for penies on dollar. The original bank which had your debt may have sold it to third party collection agency which may reactivate the collection process.
I have heard it is very common to be contacted for the debts after 5-6 years....
Again, I am trying to help you out with information I know.. This may be different depending on your state.
1 person likes this
@dorannmwin (36392)
• United States
7 Apr 11
The debts can only remain on your credit report for seven years from the time that the debt went bad. However, with debts like that there are statutes of limitations on how long the debt collectors have to file a lawsuit against you for not paying those debts. These differ from state to state, but the amount of time will reset if you were to start making payments on them if you haven't previously been making payments on them. Some states have statues of limitations on debts that are as short as just two years and some states have statutes of limitations that are as long as fifteen years.
1 person likes this
@cutepenguin (6431)
• Canada
10 May 11
From a credit score point of view, it might be best to avoid paying anything on them. I'm not sure though, because they might be able to find a way to renew them or something.
@kingparker (9673)
• United States
2 Mar 12
If you really owe them money, from the conscience of your heart, and that is a right thing to do to pay them off as much as you can. If you have money on your own and you can handle those debts yourself, why not do yourself a favor, and do your best to pay them off. Also, there is a judgment against you, you are required to pay right. I also had a judgment against me, and I am mandatory to pay this debt off my credit report. Thanks to this guy who scam me who I thought he is my friend. I hope that he has a "Wonderful life" in H*ell.
