Home
Public Forum
Credit Reports
Apply For Cards
Credit Directory
Credit Overview
Credit Problems
Credit News
International
Credit Glossary
Purchase Books
Credit Laws
Business Credit
Merchant Accts
   

Re: question about pay-off


[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]

Posted by LadynRed (199.91.33.254) on October 11, 2002 at 15:45:47:

In Reply to: question about pay-off posted by martin on October 11, 2002 at 15:12:37:

Sorry, but are you nuts ? You want to PAY for debts that are PAST the SOL and for which you cannot be sued, and basically do not have to pay ?

Are you wanting to settle simply to get them off your CR ? First, there's no guarantee that if you settle they won't sell the remaining balance to a collection agency and start the collection hounding all over again unless you get a 1099-C. Once you pay one, the will ALL come out of the woodwork. Settlement will also open you up to a tax liability. You would be issued a 1099-C "cancellation of debt income' and you would have to pay the IRS taxes on any amount over $600 that is 'forgiven' on next year's tax return. Depending on the total of your debts, that could be significant and there is no SOL expiration on IRS debts !

I don't believe a creditor is under ANY obligation to delete a verified entry on your CR before the 7 year reporting period is up. By offering to settle, you certainly verify and validate the entry. If the CRA's can't verify it, THEN it can be removed. I'd be willing to bet the best think you can negotiate for is to get a 'paid as agreed' notation on your CR. Since the reporting period is 7 years from last activity, this 'last activity' would be reset if you pay. If they won't agree to your terms, it'll be noted as 'settlement' for 7 *more* years.




Follow Ups:



Post a Followup

Name:
E-Mail:

Subject:

Comments:

Optional Link URL:
Link Title:


[ Follow Ups ]   [ Post Followup ]   [ Credit Forum Index ]

 

    Top Of Page

  

Copyright © 1999-2002 Enkephalos Web Design