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Charged off - settled less than full


JABA
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I used a debt consolidation company to settle my debts at a reduced amount. I have read several threads from this forum and now have a better understanding of my situation.... Nonetheless, I was wondering in what way I could dispute/delete these negative marks on my CR. Does settling on these accounts by definition remove me from the option of disputing the accounts? Balances for these charged off accounts run well over $500.

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On the one hand, you've wasted money by going thru these scam settlement companies.

On the other hand, if you have these settlements IN WRITING that sort of eliminates the debts, at least for now.

On the THIRD hand (!) your 'settled for less than full amount' accounts will now be on your CRs for SEVEN YEARS from the date of the 'settlement.'

Sad but true. I did one of these before I knew better.

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And, don't forget, unless you can prove insolvency to the IRS's satisfaction, you owe taxes on the "found income" for the amount forgiven. (Note: it doesn't matter if its less than $600 for a given account....that only means they don't have to send you a 1099c...you still owe the taxes).

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