| By :
Ian Webber
Checking Your Statute of Limitation Before considering negotiating a debt as part of your credit repair effort, you must know your statute of limitation (SOL). The SOL is the length of time a collection is enforceable through the court system. Many collectors attempt to sue for debts post-SOL, hoping that the debtor will be clueless. The SOL is not the same as the reporting period limit. SOLs are state and debt type specific and are usually quite short. Do not be a victim. Know your SOL. Negotiate Prior to Statute of Limitation If the debt is within the SOL it means that the collector has plenty of leverage and is likely to be difficult to deal with. If you get a collection letter you have the right to validate the debt. Debt validation is a powerful credit repair tool. If the collector cannot validate, they must stop collecting. If they do validate you should receive an accounting of the amount claimed. If you plan to negotiate, validate the debt first to avoid paying a bogus collector. Negotiate After Statute of Limitation If the collection is older than the SOL you are the boss! The collector had no leverage, and once you let them know that you are aware of the law they should be very willing to settle. After all, getting something is better than getting nothing at all, and if the debt is post-SOL, they know you can just hang up the phone. For debts beyond the SOL start your negotiations low, low, low. Negotiate Pre-Judgment Oops, you ignored a collection and now the collector has sued you. This does not mean that you have to lie down and wait for a judgment to show up on your credit report. There is a perfectly good credit repair strategy for situations like this. Contact the collector. There is no cause for fear; they have already sued you, what more can they do? Try to settle before the court date. It will be best for you and them. Make an offer. If you do not have enough money, offer a payment plan. Negotiate Post Judgment When a plaintiff gets a judgment they have won a battle, but not the war. If enough time goes by their willingness to settle for less than the full amount may increase. If you would like to resolve the judgment, either as part of your credit repair program, or in order to qualify for a mortgage or other loan, try negotiating. You will be surprised how receptive creditors can be when you offer them money out of the blue. Negotiation Timing Collectors are paid on commission. And like anyone in a commissioned based business, there are times when they are more eager to deal than others. Fridays towards the end of a month are usually the best. If you are going to employ this credit repair technique, make sure to have the funds ready, and investigate a fast way to get payment to the collector. The more tempting you can make your offer the more likely it is to be accepted. When to Use an Attorney Collections can be a tricky part of credit repair. If you are not comfortable about any part of the process take a deep breath and think about your options. You do not want to get in a jam. When in doubt consider consulting an attorney. Bringing an attorney into the picture can command extra respect and insure that you are not taken advantage of. Copyright © 2010 Ian Webber. All Content. All Rights Reserved.
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