Re: Should I take the Settlement?

Posted by Why Chat (209.240.222.130) on April 02, 2002 at 16:56:36:

In Reply to: Re: Should I take the Settlement? posted by Fred on April 02, 2002 at 13:31:59:

Let me try to be clear.
Disputing and/or validating or verifying a debt does not re-age it. CA's can be sued if they re-age.
SETTLING DOES RE-AGE- it also can make you liable for paying tax on the amount that was written off in the settlement.
If you owe $5,000. on a 6 year old debt,validate and dispute it,it will go away in a year or earlier. If you PAY $1,000. to SETTLE ,your report will show the debt as settled for 7 years from settlement date AND you will get a 1099 for "taxable income of $4,000.".

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