Should You Pay Off an Old Debt or Wait for the Statute of Limitations to Run
My question involves collection proceedings in the State of: Florida
I am trying to get my credit back together after being lazy and unemployed for quite some time. I have one derogatory mark on my credit and it is from Portfolio recovery from august 15th 2014. The total amount is just over 600 dollars for closed credit card account with Capital one.
It has not really affected my credit all that much i don't believe and with it still in the SOL by one year
Should i look into this debt and start the payoff options, or because over 3 years has gone by just wait it out until the SOL removes it from my credit report?
Re: Debt from August 2014
If you owe the money and can afford to pay it back, pay it back if you wish.
Re: Debt from August 2014
im just wondering because i dont have the full amount it would likely sign me up for payments which would end right when the 5 year mark is and it removes anyway.
Re: Debt from August 2014
The reporting period for a debt is not the same as the SOL. The reporting period in most cases is 7 years.
Re: Debt from August 2014
What is the difference between reporting date and the sol date?
Re: Debt from August 2014
The reporting date is 7 years. That is how long it can and likely will stay on your credit report.
The SOL is whatever it is in Florida and you seem to already know what that is.
Re: Debt from August 2014
Ok so reporting just refers to like reporting to the credit report? So it will stay on my report 7 years. SOL is 5 years which refers to the amount they can sue me. Can I setup payment with the company and it be removed from my degatory marks or even with a pay schedule setup it will stay in my report?
Re: Debt from August 2014
Correct. The debt will be on your credit report for 7 years.
Setting up a payment plan or even paying it off in full doesn't change the fact that it went into collections and was X months past due in the first place. That could continue be reported no matter what you do.
Re: Debt from August 2014
You can negotiate a pay-for-delete if you set up a payment plan but they are unlikely to do the delete until you finish paying it off.
Re: Debt from August 2014
The SOL date is the date which an action in court can be commenced. It is largely unrelated to the credit reproting.
What makes you think you're anywhere near SOL on this. 2014 is still two years from being out of limitations.