Re: Charge-off dilema

Posted by TheBankMan (192.152.100.150) on October 28, 2003 at 15:25:30:

In Reply to: Charge-off dilema posted by jeffc on October 22, 2003 at 11:17:19:

Few options here. You can settle on the account, but realize there are reprocussions in doing so. If you settle, and the remaining balance is $600 or more, the IRS makes you claim this remaining balance must be reported on a 1099 form as earned income for the year. The remaining balance is also Charged-Off by the company and written as a loss. A settlement is not bad, but you need to be aware of this. Companies can, and will negotiate with you on balances, so try and incorporate your credit balance and your old debts according to the amount of money you do have saved. Just make sure you pay this before legal action, b/c liens can be placed against any property you own and the firm may garnish your wages up to 25%. Hope this helps!!! -Bank Man.

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