If I don't make a setlement with my credit card company & let the account charge off, (they say they can't report "paid as agreed or similar favorable)what are my chances of settling with a CA for 40% + - as soon as they contact me (balance is 18K)
Chances of settling right off the bat (especially if you're going to want deletion) for 40% are probably low. The older the debt, the more a CA or an OC would be willing to settle for a lower percentage.
How old is the debt? If it is outside the SOL, I'd tell them to go take a jump in a lake. A "Paid" collection is a horrible mark to have on your credit report. Settle for no less than complete deletion of both the OC and CA tradeline.
About 4 months after mine charged off they offered to settle for 50%. A lot depends on what the know you have for assets. Keep in mind if they discount the payoff by more than $600 they will send a 1099 to the IRS and you'll have to declare it as income. If you took an offer for 40% you'd get hit for taxes so you're not really getting a great deal.
Is this really true? Can someone please provide more info on this? I've never heard of this before, then again I'm new here. I have a couple accts in collections that have $10K+ balances and was hoping to settle for fraction of their value.
It's true. The cc company is supposed to issue a 1099C. However, there is no tax liability if you can prove insolvency.
