Rapid Reader Questions – Bankruptcy, Collection Agent, IRS, Student Loans

Q: What happens if you don’t file bankruptcy but still have credit card debt or loans at the bank?

A: You owe them.

Q: A collection agency sent my debt to a lawyer with a court date do I have to acknowledge it?

A: No, but you will then lose by default.

Q: Do I need a lawyer to represent me to a collection agency that is trying to collect a credit card debt?

A: No. You can deal with it yourself and roll the dice.

Q: My conditional credit was changed to permanent credit after a credit card dispute was resolved in my favor can the bank or merchant take the money back later is it truly a permanent credit?

A: There is always an exception to the rule but I have not seen that happen.

Q: I want to speak to someone about loan fraud or scam. What kind of lawyer do I need?

A: A consumer-focused attorney would be best. One place to find one is here.

Q: I have no open credit cards loans or mortgages or any debt in the past 7 years now my credit score is nothing. How do I build it back up?

A: Read How to Easily Rebuild and Repair Your Credit. Far too many people follow the no-credit teachings of popular people like Dave Ramsey but it only hurts credit in the long run.

Q: If one were to refinance a home and that person has other bills like car payments and credit cards will these bills be paid off with the loan?

A: Only if you do a cash-out refinance. Rates are generally higher than a regular straight mortgage.

Q: If I owe a vendor money but the vendor refuses to talk to me or take my payment and wants to take me to court is my debt considered paid.

A: No.

Q: If the bank made an error with my loan payment and it made me late will my score be affected.

A: What kind of error? Payments are credited on the day received, not mailed. If you were only a few days late you may get a late fee charged but it is doubtful it will impact your credit report.

Q: When someone borrows money for a student loan don’t they have to make it payment every month and if they don’t pay it don’t they lose their credit?

A: You could put a student loan on forbearance and not have to make a payment for a period of time but the balance grows and you will owe more. An account that is delinquent can be reported to the credit bureaus and that can impact the credit score.

Q: Can a consolidation loan cover multiple mortgages multiple loans/debts for one monthly payment?

A: I’ve seen this most often in commercial real estate and not consumer mortgage financing.

Q: Can a creditor file a credit card debt with the Internal Revenue Service after it has been removed from your credit report after 7 years?

A: Sure. They are two different issues. I believe you are talking about filing the required 1099-C tax form with the IRS.