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cortrightlaw
cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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I have some accounts in collections due to medical bills.

Resolved Question:

I have some accounts in collections due to medical bills. Question: If I settled these accounts (for less the I owe), when a credit report is pulled, will it still show the accounts in collections? Even if I settle and the account is closed, it will still show the accounts in collections, as closed, for up to 7 years right? I ask these because if I settle or file bankruptcy, all the collection accounts, even if they are closed, will still pop up in a report.

If that is the case, can a potential employer see that the collection accounts are closed now and are no longer a threat or issue?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cortrightlaw replied 4 years ago.

cortrightlaw : Give me a minute to review your question and provide a response
cortrightlaw :

The account will show settled for less then owed, and they will stay on your credit report for 7 years.

cortrightlaw :

Yes they will still show but the employer would prefer to see a bankruptcy listed, then a lot of debt that is not being paid. if you are not paying your debt then you can be considered a risk for theft to cover your debt issues.

Customer:

If it is listed as 'settled for less then owed' would not that tell the employer that the issue is done and that there is no more debt?

cortrightlaw :

Sorry for the delay, I had a client come into the office, and yes that would also show them that the debt was no longer owed, the only other issue you need to consider is that if you settle for less then you owe they can send you a 1099 reporting the unpaid portion as taxable income.

cortrightlaw :

Have I satisfactorily answered your question? If I have please remember to click the GREEN ACCEPT BUTTON so that I will receive credit and compensation for my time (doing so does not end our discussion), i will gladly clarify my response or respond to follow up questions if needed.

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