I'm just getting over going through a nasty divorce and have just now really taken a good look at my credit report. I have a few bills that have been sitting on my credit report for 1-2 years so I see no problem with paying those off asap. But I have a few that are due to fall off on their own in the next year or two because it's almost at the 7 year mark. Do I pay those too even though it's considered like I have "reactivated" them and once I pay them they show paid BUT are now on my credit report for another 7 years with a $0 balance, but showing paid really late? I just don't know what is the best to do.
If you have the money to pay any outstanding debts you owe that are still collectible you should pay the debts off as soon as possible and start rebuilding your credit. If you don't have the money to pay all your debts but have enough to make lump sum offers to settle the old debts that is also an option. You may benefit from a free consultation with an experienced local bankruptcy attorney.
If you have debts near the 7 year mark you should LEAVE THEM ALONE! If you make a payment you could restart the statute of limitations which means the creditor could now sue on those debts you again.
I would pay off the debts that are around 1-2 years if you can and just let the rest fall off your credit. Also, its never a bad idea to look up a "credit repair" attorney here on Avvo and get a free phone consultation.
Please be advised: I'm licensed in California only. This response is intended only as general commentary not legal advice and does not create an attorney client relationship. This response may be considered "attorney advertising" material. Nothing in this posting should be considered a guarantee, warranty, or prediction of the outcome of your case or any other case.
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