Jansol

My creditor refused to accept my settlement offer, which is more than half of the charged off amount, due to legal firm's inability to fax an official letter of the settled debt as well as filing a motion for release of judgment within a 24 hour period of after receiving the money . Does anyone know if I have any legal recourse ?

Thank you all for replying. You guys brought new insight to my situation. However, it seems, I should have taken the steps you all mention prior to the court ordered judgement against me. Also, it looks like there's argument on both sides (creditor allowed to collect on charge-off debt, issuance of a 1099-C and creditor allowed/not allowed to collect on debt) therefore if the BofA attorney filed a civil claim against me post 1099-C, I would argue I paid taxes on the debt, but it will be up to the judge on which way he would want to rule, given there's precedence on both sides. When I spoke to an attorney about the creditor collecting the judgement and benefiting from the "tax break" of it being a write-off, he simply said, "that's just the way it is."

Thank you both for replying. I have another question: If creditors can charge-off accts wouldn't that be double-dipping, somewhat? Charge-off accts are considered write-offs and they get tax credits for those accts while they pursue more aggressive approaches in effort to collect the debt. If they do collect the debt, then they have received money from both the government and the consumer.

B of A charged-off and closed my acct. A little over a year later, B of A contracted attorneys filed suit and was awarded judgement. Can the same creditor have a charge-off and judgement against you for the same account? I reside in TX. Both the charge-off and judgement is reflected on my credit report.