Creditor problems! Please help! What is a Stipulation of settlement?

Question

I have two credit cards that have fallen severely delinquent after an injury kept me from work for half of a year (Man I wish I had taken that short-term disability).

I am finally back on my feet again and looking to pay back these debts but I have a few issues before I can start paying back money. Naturally, over the course of 6 months non-payment, the cards have gathered quite a bit of interest. I told my cards I would pay back what I owe but I am in no position to pay almost 1k worth of fees and interest. Now, this would show as SETTLED IN FULL rather than PAID IN FULL, and I've heard that SETTLED IN FULL really looks bad on credit reports, anyways.

I also heard that companies can delete the tradeline (?) so it doesnt even show on my credit, or 'hide' it via Stipulation of Settlement. When I mentioned this to my creditor, he adamantly said there was no way he could, it was against the law. Is this true or is he just pulling my leg to effectively s***w me over?

Answer 1

A Stipulation of Settlement is an agreement that you and your credit enter into regarding repayment after a lawsuit has been filed.  It is filed with the Court.  In exchange for you paying the money, the lawsuit is dismissed.  If you default on the Stipulation, the creditor can ask the Court to hold you in default of the Stipulation and/or contempt of court (Depending if a judge signs the Stipulation).

A Stipulation will not delete or hide the tradeline in and of itself..  You can always ask the creditor to delete the tradeline after you pay them, but most won't.

Answer 2

You cant hide bad credit that is against the law.You probably need to file bankruptcy.You will have bad credit but it isnt impossible to improve it afterwards.Or you could negotiate with a second party.They are called credit solutions or negotiators.They deal with your creditors and you pay them the money that you have to pay off what debt you have left.That gets rid of the awful calls at home.Or you could be honest with the credit card companies and work out a resolution and stop the interest and pay an agreeded upon sum monthly.