IF you are able to make a settlement with the OC, and obtain a 1099 for any balance, that is the optimum situation.(other than paying your balance in full to the OC)

Once an account has been charged off and turned over to a CA, you hae to find out if it has been sold, or assigned. If assigned, you can STILL try to negotiate a settlement with the OC.

You want to avoid having the unpaid balance on a settlement spiral downwards into the underworld of bottom feeder CA's.
This is what will happen if you try to settle with a CA who has purchased your debt from the OC.

If this is already the case, then you need to consider how to deal with a bad situaton without making it worse.

If you are in a situation where a CA can tell he will not be able to get a $$ from a judgment,the likelyhood is he won't waste his $$ to file suit.

If you do not pay, or settle,you have a BETTER chance of disputing the accounts off your reports.Once you pay them anything, the derogatory information cannot be disputed.

Your best bet for a future of prosperity and comfort would be to start SAVING your $$, learn how to budget wisely, improve your job skills and use the balance of the "7" years bad credit to improve YOURSELF instead of looking for a quick fix and instant gratification.

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