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Hello all. My first posting and I hope it's a good one and hasn't been asked..........

The SOL in my state is 4 years. My debt is less than a year since last payment. If I choose to lay low and wait 3 more years with no legal action then another 3 more years everything goes away (7 years total).

If I work out a settlement, for example, 3 years after last payment, then I reset the 7 year clock and the total time on the credit report is 10 years.

Now, not only does a settlement reset the 7 year clock I also have to deal with the IRS for the forgiven amount. So that begs the question. If I don’t settle and just leave it alone, does anything get reported to the IRS? :confused:

If both those are correct then isn't it unfair that someone who chooses try settle old debts to the best of their ability suffer the longest/hardest? Why is trying to do the right things works poorly in your favor? I must say that not paying my debts as agreed wasn't my intention. As many others I fell on hard times and spent all my savings to survive.

Thanks for the answers.

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