I have 17K credit card debt with Chase bank. They changed the interest from 3% to 29% for no cause. I was not able to pay the debt and it was C/O by Chase. Their debt collectors has agreed to settle the debt for $10K if we do it by the 31st of this month. If we take our tax refund and the borrow from a friend and a 401K we can do this. Questions 1) Is this doable on their part or are they lying to me 2) Who controls what remains on my credit file for the next year 3) Will the charge off remain on my credit report 4) To give someone 10K is a large step for me should I include an attorney in this process 5) I know I need to write a letter what should it include 6) Where can I get more information on settling the debt, books, pdf file 7) What happens for the unpaid balance (17K-10K) = 7K unpaid
1. Of course it's "doable". 2. They do. 3. Yes, for seven years. 4.Unless you have everything in writing from them, no need for you to get an attorney. 5 + 6 - someone else might chime in. 7. The unpaid balance of $7000, will trigger a 1099 tax document, and you will have to list/include that amount as income when you file taxes next year.
When was in charged off ? Who is the JDB? What state are you in? When was the first time you were contacted? Are you going to be able to pay that extra tax on the forgiveness of debt? I have to say that unless you have been sued and they have a judgment I would hold onto my money, and not pay a JDB. Woofer
