Maybe charge off isn't bad???
Date: Thu, 05/27/2010 - 14:07
I have read in many posts that ideally you DO NOT want accounts to be charged off - for a variety of reasons that makes sense...
However, I was just wondering if it MAY BE beneficial to get charged off? - It seems that if the original creditor sells your account, they cannot then send you a 1099 for tax. Then the purchaser of the debt is starting with a much lower amount (they paid for) and, hence, cannot send you a 1099 for the total. Is this accurate? I'm definitely not an expert, but just noticed this...
Any comments?
If the original creditor forgives any part of a debt they must s
If the original creditor forgives any part of a debt they must send you a 1099-C. If they sell the account, they cannot send a 1099C because they no longer have any rights to the account. However if the new owner of the debt agrees to forgive a portion of the debt, they MUST send you a 1099C. It doesn't matter whether they bought the account for less than the full amount of the debt because the new creditor now has the right to collect the full amount of the debt. So they would send you a 1099C based on the original amount of the debt.
The only benefit may be that the collection agency may settle fo
The only benefit may be that the collection agency may settle for less than the original creditor. But if you are looking to settle for 40%, you should be able to accomplish that easily with the original creditor.
My experience was that debt settlement is like playing chicken w
My experience was that debt settlement is like playing chicken with the bank. Whoever blinks first, loses.
Charge off is bad because it can have an extremely bad effect on your credit. However....3 of the 4 accounts I settled were charged off, and my credit score only suffered 10 points total! I know this seems absurd and if I were reading this post I would call the writer a liar. But....it is true. It went from 681 to 671.
My last settlement finished in March so perhaps there is a delay in reporting. I'll keep you up to date on that.
(Link Removed by Shazzers as solicitations are against TOS rules)
Link removed. Please read TERMS OF SERVICE for a more detailed description regarding advertising. Shazzers