Re: How can written-off debt still be collectible?!!

Posted by Armadillo (12.213.78.230) on June 24, 2003 at 19:00:09:

In Reply to: Re: How can written-off debt still be collectible?!! posted by scott on June 24, 2003 at 18:26:39:

In California, SOL is 3 & 6 years respectivly on judgments and subsequent liens. Scott, if they sell the debt after they have written it off, then they have recouped some of the write-off, and we both know that the IRS would assess them tax right away on any recoupment income. How can it NOT be? So if they gross $980 (30% of 1400) of bottom line non-charged off debt, then they're only getting $294. (Selling it or not, 'assigned' debt will never net close to the full balance, and one can't make money twice -- bootstraps stuff, me thinks.)

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