Re: Judgement...whychat
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Posted by LadynRed
(199.91.33.254) on January 31, 2003 at 14:24:44:
In Reply to: Re: Judgement...whychat posted by Frapster on January 31, 2003 at 13:02:06:
1 -Because, by settling debts, the account on your credit report gets a new 'date of last activity'.. and it will stick to your credit report for ANOTHER 7 years. If you don't negotiate for a POSITIVE tradeline on your credit report, then 'settled', 'paid charge-off' or 'paid collection' are all DEROGATORY information and will tank your scores for a long time. You're not doing yourself ANY favors in settling unless you can get the positives on your CR in return. 2 - Unless you insist on a 1099-C, the remainder of the debt WILL be resold and another collection agency will come calling at some point - and possibly place another collection on your CR. 3 1099-C will open you up to tax liabilities - its 'cancellation of debt income' in the eyes of the IRS and you pay taxes on it. Settling = shooting yourself in the foot !
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