Forums
I have a small business, and unfortunately I have encountered debts that were sent to a collection agency. Can they go after my business and myself personally? I have explained my hardship with this economy, and would like to set up a payment plan to pay them off. Will my credit still be affected by this? And, if so, what is the upside on paying this debt?
Hi Arya,
If the creditor has turned over your debt to a CA, then it will be mentioned as a "charge-off" in your credit report. This is definitely not good for your credit history. The CA can use various means to get the debt from you, though they cannot violate the FDCPA. I think you can write a pay for delete letter to creditor, stating that you would like them to remove the "charge-off" from the credit report, since it affects your creditworthiness badly. Also tell them that you would like to pay the debt but with a new payment plan. The upside on paying this debt is that it will help you to improve your credit score.
Take a look at this link to find out the sample pay for deletion letter: http://www.creditmagic.org/repair/pay-for-delete.html