Can Leftover Balance from Settled Amount Be Sold to CAs?

Hi Dan, everyone tries to sell their own theories. If not chosen properly both the credit counselling company and the debt settlement firm can give you pain in the future. What the counselor has told you is partially right, the loans can reappear in the future. But it can be avoid by choosing the right and reputed settlement firm, who will live upto their words.

Moreover, you can get out of the debt problem faster by adopting the settlement program. Also, it causes minimum damage to your credit report.

However, you are the best judge of your situation. Hence, evaluate all your options before choosing the one as the wrong decision can worsen your condition.

as far as i know.if the portion left after settlement is 600.00 or more,you should get a 1099C form to go with your tax return the following year.as far as a CA being able to collect on remaning balance after settlement.that is news to me.

i had to let a car be repossessed 7 year ago. they sold the debt to someone else. now they're calling saying they'll settle for 30 percent of the debt or begin legal action. can they do this? they sold the debt and never threatened this before. i've never been contacted by them or anyone for them before now. is this a scam?

If it is a collection agency calling; don't talk to them. Your statutes of limitation may be over after 7 years. Research the laws in your state on installment contracts; you could reactivate the process by admitting to the debt and/or paying any amount.