Re: settle a collection?

Posted by Kjeldorian (64.83.213.229) on July 05, 2003 at 11:51:04:

In Reply to: Re: settle a collection? posted by Keyser Soze on July 04, 2003 at 22:19:03:

I don't think Keyser answered your question at all, so I will try to give you an infomative answer.

Ask the creditor or CA what they are willing to take as a settlement if you have the money and are able to pay today. Some creditors will accept as low as 50% but it is all dependent upon the creditor. Once you have agreed to a settlement amount, tell them you will setup payment upon receipt of a settelment offer letter which would state that your payment would satisfy the debt. After you have paid the debt then call back and ask for a settlement letter showing that your payment was received. This letter, along with your proof of payment will enable you to have protection under the Fair Credit Reporting Act.

Will you have to pay tax on the amount that was forgiven? Yes, you are supposed to report it as income. The amount isn't going to be that much and it still won't total over the total amount you owed in the first place anyway.

Do the settlement and repair your credit, so you are able to obtain credit at reasonable interest rates. Remember, one of the biggest measurements of credit-worthiness is timely remittance of each payment to each creditor!

Good Luck

Follow Ups:

Post a Followup