How does one attempt to settle an old debt that is outside the State Statutes of Limitations. I live in Texas and the time is 4 years. The last payment made on this debt was January of 2006. The account went delinquent in the summer of 2005. I am offering a payment that is lower than the collection agencies claimed amount. I do not know where they got their amount. I do not want to offer a payment and then get hit with a 1099-C that claims $10,000 or more. How can this be done?