Re: Settlement or Charge-off?

Posted by John on January 23, 2002 at 00:41:02:

In Reply to: Re: Settlement or Charge-off? posted by Pete on January 22, 2002 at 19:44:23:

You dont pay taxes unless you make a deal on the amount and they settle for less than what was owed.
For example if you owe 4000 on a card and they'll agree to settle for a 3000 payment, technically that 1000 that was not paid is taxable income, silly but true.
Linda's advice makes sense make them make the move, if you have a charge off on your credit report it'll hurt you the same as it would making no payment at all on the amount. Remember the statue of limiations for them to sue and for it to go away on your report starts from the last date you made a payment.
Every time you make any payment that bad credit on your report will reset for another 7 years plus 180 days.
Thats how I understand it.

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