Hello, we are new to the forum and are hoping to get help. My boyfriend and I are planning to get married, but first we want to catch up on his debts. We have lots of questions about where to start, so we apologize for such a long post. He has about $15000 in debt. Most of which is in collection, but a few are still with the original creditor. Most of the debt is Medical and Auto Loan/Lease related. In addition, there are some credit card, utilities, public transit and parking fines, all in collection. We already have a plan to pay this off by the end of 2009. We have prioritized the debt that is accruing interest first, followed by the newest to oldest debt. Currently none of these creditors/CAs are actively contacting him. We live in Colorado, however his debt is from when he lived in Illinois & Colorado. Now that you have the historÃ¢â‚¬Â¦letÃ¢â‚¬â„¢s start with the questions.
Our first question is related to the affects on my credit. If we havenÃ¢â‚¬â„¢t paid off his debt by the time we get married, how does that affect my credit? Can the creditors/CAs come after me? In the future can we just obtain credit under my name and not his? Or once we are married would they look at both our credit history?
Here is our plan based on what we have read on this site so far. Once we have saved enough money to pay off a particular creditor/CA, we will initiate contact. For original creditors we plan to contact them by phone and see what they are willing to negotiate and then send a debt settlement Letter. (Note, all mail to creditors/CAs will be sent certified/return receipt.) For CAÃ¢â‚¬â„¢s, we will contact them via a DV Letter. After we receive their response, we will respond back with a Debt Settlement Letter. How do we know what the settlement should be? Will they send back a settlement recommendation with the DV response? Or after the DV should we contact them via letter requesting a particular settlement? Or should we just propose in the Debt Settlement Letter? In a Settlement Letter if we state Ã¢â‚¬Å“the payment will result in complete discharge of the debtÃ¢â‚¬Â does that mean they have to remove it entirely from his credit history? We are also very confused on SOL. Is it appropriate to ask the CA in the DV Letter to prove the SOL has not expired? Also, is it appropriate to request verification or a copy of any judgment in a DV?
Is this the right approach? Have we missed anything? Are we crazy for paying all of this off when the creditors/CAs arenÃ¢â‚¬â„¢t even trying to contact him?
Thanks so much for all of your help. And we promise to update the forum with what we learn through this process.