Re: Advice for Paying Off Debt

Posted by J Kelly (141.152.248.252) on March 12, 2004 at 10:43:25:

In Reply to: Advice for Paying Off Debt posted by Kevin on March 12, 2004 at 09:47:39:

If you read the archives here you will see that debt settlement companies ( I know of no exceptions) rarely if ever produce the results they promise, and your girlfriend will more likely be sued.
If the accounts are not charged off yet, then yes, try to work something out with the original creditors. Be aware that if you sttle for less than the original amount, your finance may receive a 1099 from the IRS. She MIGHT have to pay taxes on the amount charged off. If you can prove that she was insolvent during the time of the settlement, she will not have to pay. Last, but not least, the remainder of the account could be sold to CA. Then you really have problems. It is my understand that settling for less the what is owed is not good for her credit report.

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