Well, I did it. I finally spoke with the ever so wonderful and popular Mr. Cooke. He renegotiated my account to settle for 55% of balance. He also changed my rating to reflect settled and R3 with the possibility of opening up a new account once I send in my payment which will be in less than two weeks. I am tooooo damn happy...That Mr. Cooke and Capital One are the BOOOOOMMMMMBBBB!
I hope Mr. Cooke reminded you of this...if the remaining 45% of your balance that you are not paying is more than $600, you are liable for federal, state and local taxes on the difference. Let's say you owe $2000, agree to pay $1200, well the remaining is $800-$600=$200 taxable "income." Beware.
It is very possible. A creditor is "Supposed" to report any debt forgiven to the IRS and send you a 1099 at the end of the year. The theory is that you profited from the forgiveness of all or a portion of the debt. In my experience the information is reported to the IRS much less than 50% of the time. Much of it depends on the amount forgiven and the creditor.
Thanks and good luck...they will probably have you call me to set up your airline reservation....Good luck!!! Hope to meet you then.
okay kittw, As i dwell in anticipation of my call from Mr. Cooke, I too will summon the Kahunas to call him first, please post the phone number. Congratulations!!!
