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* Disclosures:
- By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
- Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
- Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
- Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
- The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.
If I settle an debt with a creditor. Will the creditor report the amount I saved to the IRS and then the IRS will charge me taxes on this amount...?
anonymous
If I settle an debt with a creditor. Will the creditor report the amount I saved to the IRS and then the IRS will charge me taxes on this amount...?
anonymous
If you are agreeing to a settlement there is no way to have that account report as 'paid in full'. It will report as 'settled in full'. A 32% settlement isnt bad...
Bill Shannon
No problem - that's what we're here for. If you need help, just holler. You can also do a search on your creditor to read how others have handled their settlements.
Good luck.
aubrey
Thanks so much I will check out the DIY section today!
rj
I handled my settlements personally over the telephone. I told them my circumstances. The creditors asked for my financial info (never had to send them forms, etc.) and we negotiated from there. Bank of America was fairly easy; Citibank and Capital One were a b*itch. Chase, Discover, HSBC were okay - Discover a little harder than the other two.I kept in touch with them and called asking for better settlement percentages.
All my accounts are settled except Capital One, and that account is up to date.You can refer to the DIY portion of this website for further information. For the sake of time I preferred to talk with them over the phone.
aubrey
Can you please post a bit about the settlement process? Did you have to email/fax/send in a hardship letter, bank statement, paystubs etc.? Also, if you did send a hardship letter can you summarize what was in it and the fax number you used? Thanks in advance for helping out someone in your same situation!
rj
Thanks for all your advice! I am taking the settlement as suggested.
rj
I would take that offer before they change their mind. They are very aggressive and I was fortunate to get the settlement I did before it went to collection agency.
aubrey
You will never get them to agree to a "paid in full," but you may be able to dispute it off your credit report a while after the settlement payment is complete. Most banks, however, don't charge off at the 180th day, but rather at the end of the calendar month on which the 180th day falls.
rj
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