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RobertJDFL
RobertJDFL, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 12635
Experience:  Experienced in multiple areas of the law.
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I just looked at my credit report, it says" bad debt,

Customer Question

i just looked at my credit report, it says" bad debt, placed for collection and skip" what dose that mean
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  RobertJDFL replied 1 year ago.

Thank you for using Just Answer. I look forward to assisting you.

Bad debt means the creditor has been unable to collect the debt. Placed for collection means the debt has been sent off to a collection agency to try and recover. And skip means that the creditor has been unable to reach the debtor (e.g., if you have not responded to their letters and calls, or didn't leave a forwarding address after moving).

Customer: replied 1 year ago.
i owe the creditor money on credit cards, also i have saving account with this creditor, does that mean they can freeze my saving account and take the money?
Customer: replied 1 year ago.
i believe i stopped paying since 2010, can they still take me to court? does "collection" means they filed paper against me in court?
Expert:  RobertJDFL replied 1 year ago.

Collection just means that they sent the matter to a collection agency, it doesn't necessarily mean a lawsuit was filed. If a suit was filed, you would have to be served papers notifying you of the suit, also.

As far as whether they can still sue you, that depends. What state is this in? Also, are we talking about credit card debt?

Customer: replied 1 year ago.
i am in washington state, i am talking about credit cards.also, i have savings account with this creditor, does that mean they can freeze my savings account and take the money ?
Customer: replied 1 year ago.
i am still waiting
Expert:  RobertJDFL replied 1 year ago.

I'm sorry, I'm working with several customers at one time. I am typing as fast as I can - I promise. :-)

Washington State has a 6 year statute of limitations (time limit) to file suit, meaning yes, they could still file a lawsuit against you to try and collect the debt. The creditor wouldn't be able to freeze the savings account take the money without first getting a court judgment.

Customer: replied 1 year ago.
what should i do next?
Customer: replied 1 year ago.
that is why i want to find out when i made my last payment, how can i find out and what should i do?
Expert:  RobertJDFL replied 1 year ago.

If these creditors or creditor is actively pursuing you, and you have the means to pay something, then it's worth contacting the collection agency the debt has been assigned to and see if you can negotiate an agreement. By the time the debt goes to collection, they're usually willing to accept much less than what is owed. However, most also want full payment of their offer (e.g., if you owed $10,000, they may be willing to settle for $1,500, but not be willing to accept a payment plan). You won't know until you call. If you're in over your head in debt with no possibility of paying anything, I would suggest consulting a bankruptcy lawyer in your area about filing -which can potentially wipe out your unsecured debt (like your credit cards) and give you a fresh start. It will also stop creditors from harassing you once you file.

Your credit report will show you the last month you made a payment on the account.

Customer: replied 1 year ago.
i looked at the credit reports, in the very bottom, shows some months and years, some of them in green, some in red, when i move my mouse to green, did not say anything, when the mouse points to red, says"failed to pay" but from my memory, the last month i made payment does not match the months in "green"
Customer: replied 1 year ago.
also, i do not think i will be qualify for filing bankruptcy. coz i made decent money now. i started working last year, before that, i went through divorce and then school
Customer: replied 1 year ago.
i really do not know what to do now
Expert:  RobertJDFL replied 1 year ago.

Well, then as I said, contact the credit card company -they should be able to tell you when you made your last payment. And, if the creditor (or a collection agency, on behalf of the creditor) is pursuing you for the debt, then you either a) try to reach a settlement with them, or b) take a wait and see approach and do nothing. I wouldn't advise that --as there is a chance they sue you and get a judgment. And then you'll end up paying the credit card amount, plus court fees, plus legal fees.

If you pay them (even if you pay them a reduced settlement amount) your credit report will be updated to reflect that the debt was paid.

Customer: replied 1 year ago.
i owe a big amount on the credit cards…..for the settlement, how much i should offer to pay
Customer: replied 1 year ago.
like what percentage
Customer: replied 1 year ago.
if i need an attorney,what kind of attorney i should find from local? should be bankruptcy and debt or consumer proaction lawyer?
Expert:  RobertJDFL replied 1 year ago.

Most collection agencies won't settle for anything less then about 45-50% of the original debt, so I wouldn't propose something ridiculous, like 10% of the balance, as they won't take you seriously. However, I'd make an offer in the 30-35% range at least as a starting point and see if they counter. Again, the more you can pay all at once, the more attractive any offer you make will look to them.

You shouldn't need a lawyer unless you are sued for the debt, in which case, you would want an attorney who does civil litigation.

Customer: replied 1 year ago.
but i do want to consult an attorney before i make decision about what i will do, what kind of attorney i shall speak to
Expert:  RobertJDFL replied 1 year ago.

You would want to speak to a consumer protection attorney, in that instance.

Customer: replied 1 year ago.
i don't feel i am getting much useful info from here
Expert:  RobertJDFL replied 1 year ago.

I've answered your questions as asked, we seem to be going around in circles at this point. I am going to opt out and open this question up to other experts, perhaps they will be able to provide you the information you are seeking. Your deposit remains in place. Good luck to you.

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