Re: How to Go About Settlement Negotiation
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Posted by LadynRed
(199.91.33.254) on February 05, 2003 at 14:39:52:
In Reply to: How to Go About Settlement Negotiation posted by Sunny on February 05, 2003 at 14:15:39:
How delinquent is the account, has it been charged-off yet ? Unless you're close to charge-off, most cc companies won't go below 80%. A few will do 50% and once in a while you'll see as low as 35%, but that's a real last-ditch effort to get SOME money from you before its charged-off. The older it gets, the less you may be able to settle for, but it depends on the CC. Discover, for instance, will sue very quickly after charge-off. IF you can get them to settle, anything over $600 of 'cancelled debt' is considered taxable income by the IRS - PROVIDED that they issue a 1099-C. If they don't issue a 1099-C, the balance will just get sold to a collection agency and you'll have to start all over again.
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