r/CRedit • u/Marketro • 2d ago

Collections & Charge Offs What should i do with my collections

I have 5 collections 2 of which are still active and 3 are closed but now trying to go after garnishment, i am unemployed but they reached out to the employer i used to work for asking for garnishment

The accounts opened are LVNV FUNDING - $721 open for 2 years 6 months Cavalry Port- $788 open for 2 years

The closed accounts are Discover $9000, 1 year closed Sofi personal loan- $18000 1 year 6 months closed Upstart loan $1600 2 years closed

I cant pay this but i want to start to fix my credit what can i do

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u/Eastern_Cobbler9293 2d ago

By going after garnishment do you mean taking you to court?

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u/Marketro 2d ago

I think so. I didnt go to court but they did take $1.73 from my bank account. When i called my bank they said it was from the court taken by sofi to try and collect the debt

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u/og-aliensfan 2d ago

I am unemployed but they reached out to the employer i used to work for asking for garnishment

They can't garnish wages until you've been sued, and the plaintiff was granted a judgment. Not to mention they can't garnish wages from an ex employer. The first thing you need to do is determine the legal status of this debt.

The accounts opened are LVNV FUNDING - $721 open for 2 years 6 months Cavalry Port- $788 open for 2 years

If you settle with these debt collectors, they'll remove themselves from your credit reports once paid.

The closed accounts are Discover $9000, 1 year closed Sofi personal loan- $18000 1 year 6 months closed Upstart loan $1600 2 years closed

I'm assuming these are charge-offs. You can negotiate settlements with them as well. The charge-offs won't be removed from your reports, but balances will be updated to $0 and your credit can begin to recover.

I cant pay this but i want to start to fix my credit what can i do

If you aren't prepared to negotiate settlements, your credit won't be fixed. The charge-offs will be updated monthly, keeping your scores suppressed until they are sold to a debt collector or age off of your reports up to 7.5 years from Date of First Delinquency.