So after you submitted an SOR, with one initial letter to show proof of your progress will they ask again proof or will they grant you an interm
If you are responding to an SOR, you are past the stage where the interim would come into play. You’re either going to be granted your clearance or denied. I don’t think there’s any ‘interim’ in your future at this point.
Before they will grant that will they want to see more proof of paying off debt before they grant it just to see you follow up of what you stated…
Will there be an adjudicator out reaching to you before they make a decision?
No, the response to the SOR is your last chance to provide any mitigating evidence. If they still move to deny your clearance, you have one final appeal where you can attempt to argue why the judge made an error, or why they didn’t consider all the mitigating factors. Then your clearance will be ultimately denied or granted.
So is it skipping all the Adjudication entirely or is it just one judge making that decision intended for a yay or nay. In December I submitted my proof of my guideline F for financial considerations of what I have started to pay off my debt. That being said still waiting on a response back.
Researched that guideline F is hard to pass because of the severity of what it’s worth, or am I wrong. So! Here as I wait to see what this judgement to be.
Thx all for the response.
So if a decision has been made, will I get notified by the FSO of my final decision. I do not have computer access at this time at work, but DOD CAF has my HOR address so they can send mail (which I have not received).
You need not remove all debt. But you need be in a repayment plan on all debt. After you make about 4 payments on any debt, it is considered addressed. Debt you are not paying on is unaddressed. You don’t want any unaddressed debt. Otherwise you are viewed as susceptible to blackmail and bribery. An offer of money to trade for access or information. At this stage it is too late to file bankruptcy and discharge the debt. My client is always clear. Bankruptcy removes the risk you will sell info or access for money. You normally do not lose a clearance for filing. However the behavior leading to or following can cause a loss of clearance. You do take a hit on the FICO score, but I have seen a person bounce back to 680 after 6 months post bankruptcy. And she cleared. If you were told fix 14 debts and you fixed 8 to 10…you did not accomplish what they wanted. I predict a denial, and a wait of 365 days to reapply. Or you can get into the repayment plan, ask the judge at the final call to see if they feel you demonstrated what they wanted. Either way, fix your finances. Nothing good comes from bad credit: higher car insurance, higher cost health insurance, denial of clearance, higher mortality rate…
I personally know of cases where the argument was made, “I am paying the debts that I can but my current income doesn’t support paying others. When I receive my clearance, am able to begin my new job, my income will increase and I will be able to address the other debts.”
But, you need to be TRYING to work with the other creditors. You can’t just be ignoring them.
Yes I agree but if the creditor is unwilling to budge on the amount taken should I just make as much payment I can give them or they will consider it a cancelled debt.
I already told you on another forum that in my case an adjudicator reached out to me with additional questions AFTER I submitted an SOR. You keep asking different questions on different forums to different people like you are searching for one specific answer. Someone may or may not reach out to you. There is nothing you can post or ask to change that outcome.
Gonzo . . . I also feel that you may be a troll . . . You seem to be all over the place asking the same questions AND all over with different issues. I don’t know what to think.
Only the creditor can cancel debt. They can cancel it or do a charge off. If they do a charge off, you still owe the money but they are agreeing that there is little chance that they will be paid and they discontinue collection action. Your adjudicator can take this at face value OR consider it a debt that you should still address. Debt is usually cancelled or forgiven when you make an agreement with the creditor to pay some amount (40-60% often does it) and they forgive the balance. This is debt that is now paid off.
I appreciate your honesty on this but I’m not a troll. I don’t know how many people are on this forum. But im a service member trying to get answers. I did not know or was aware there was rules of conducting a forum.
How do I ask this specific creditor to forgive me. I have reached a settlement with them that I have reached almost 60% of the debt.
Let’s say that you owe them $1000. You can call and ask if they will accept $500, by this Friday as full payment. If they accept and you make the payment, then the balance of the debt will be forgiven and the entire issue will likely be removed from your credit report.
Beware: The January after you do this, you will likely receive a 1099-C from the creditor listing the forgiven debt. You have to report this on your tax return for the year and it will, if you are not smart and/or careful, be counted as income. In other words, you will be trading debt for taxable income and possibly trading your debt for a tax problem.
And get it in writing that they accepted the lesser amount and are forgiving the remainder or charging off. Ed is correct this can be viewed as income (portion charged off).
A charge off will not be reported as income but it will remain as a debt on your credit for several years. Forgiven debt will be considered income, reported on a 1099-C, but there can be ways to get around that.
I’ve often seen references to “charge offs” and tax implications but never understood the details. Thanks for explaining.
Subjects often think that a charged off debt is no longer a concern and no longer “count”…
This is not true. They need to be reported for the delinquent or collection account questions.
So I’m dealing with a creditor (just one) wants to make a payment of little more than 2000 for 4 months. I have tried to see if they can do a settlement or just minimum payment that I send in…they said no and this is upsetting me…
You’ve stated you are in the military. How did you get $2000 in delinquent debt? This is probably the issue as the military is well paid these days and delinquent debt is not well received in the military.