debt settelment vs waiting the statute of limitations
Date: Wed, 01/27/2010 - 04:01
I have some bad credit card debts that went to collections about 2 years ago. I really want to be proactive about fixing my credit now, but I don't know if I should settle the debts or just wait for the statute of limitations to pass in another couple of years. Can I really fix my credit score by settling or would it be more advantagous just to start rebuilding it will small accounts and wait for the old debts to fall off? Can I be given a 1099 for the difference of the settlement?
What is the statute of limitation of your state? Remember that
What is the statute of limitation of your state?
Remember that there is a chance that the collector may sue you over the debt if you don't repay it and wait for the sol to expire.
A 1099 can be given for the difference but you can try to negoti
A 1099 can be given for the difference but you can try to negotiate that when you settle. Although I am not a CPA I do understand the IRS rule to be that if you are insolvent, that is owe more than your asset value, when you make the settlement then you do not need to claim the 1099 as income for that year. Please consult a qualified tax preparer for confirmation.