willwinoverdebt

I HAVE FINALLY SETTLED ALL MY ACCOUNTS!!

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I am happy to report that I have settled all my outstanding debts. I had $35,102 in credit card debt that all charged off over about a year ago. I was able to scrimp, borrow and negotiate to get enough money to pay them all off. It took time and patience but I am happy to say "I DID IT!!" What an awesome feeling. I settled all nine accounts for $12,767 dollars with the exception of one account that worked out a payment plan with me for 0.99% for five years. Good luck to everyone out there who is trying to settle their debt!

Now I will start working on repairing my credit. A new journey.:p

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I am happy to report that I have settled all my outstanding debts. I had $35,102 in credit card debt that all charged off over about a year ago. I was able to scrimp, borrow and negotiate to get enough money to pay them all off. It took time and patience but I am happy to say "I DID IT!!" What an awesome feeling. I settled all nine accounts for $12,767 dollars with the exception of one account that worked out a payment plan with me for 0.99% for five years. Good luck to everyone out there who is trying to settle their debt!

Now I will start working on repairing my credit. A new journey.:p

NOW THAT YOU HAVE SETTLED, did you receive letters from the ca's or oc's verifying the agreed upon terms ? If not.....watch out ! They may be coming back at 'cha for more ! Also...stand by...you will probably receive 1099's for taxes owed on the balances of approx 23K !! THAT'S THE DOWNSIDE WITH ANY SETTLEMENT ARRANGEMENTS !

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I did get all my accounts settled with the terms in writing. All of my accounts were still with the OC but I dealt with attorneys or a third party collector. I have not had any problems with anyone taking more than what was agreed upon from my account or anything like that.

I am well aware of the tax implications and will have to deal with it but this was the only way out for me.

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I did get all my accounts settled with the terms in writing. All of my accounts were still with the OC but I dealt with attorneys or a third party collector. I have not had any problems with anyone taking more than what was agreed upon from my account or anything like that.

I am well aware of the tax implications and will have to deal with it but this was the only way out for me.

IF YOU ARE CONTENT WITH THE OUTCOME, THAT'S ALL THAT'S MATTERS...BEST WISHES !!!

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Congrats on getting rid of your debt - I;m sure it's a great relief off your shoulders...

Not meaning to rain on your parade - see link on IRS topic Topic 431 - Canceled Debt – Is it Taxable or Not? http://www.irs.gov/taxtopics/tc431.html

There is a very good chance you are going to receive 1099-C's from your past debtors. That you are responsible for taxes.

Your next step is to get of copy of your credit report, to make sure everything is updated. It can take many months after you settled an account, for any updates to occur.

Another consideration with your debtors (it might be to late), when you agreed to a settlement. You should mandate you want them to show your account listed on your credit report as "Settled as Agreed" instead of "Settle for Less"

The wording maybe different in many cases, the point I am trying to illustrate is. A negative statement will weight down your score from raising, compared to a positive statement allowing your score to increase faster..

Simply looking at the 5 keys to credit -

On time payments

Balance to credit limits

How long have different types of credit

Derogatory statements - (this one)

Number of Hard Pulls on credit

Good luck

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So who defines what is "taxable income" and was interest and late fees on the original debt? If you charged $15,000 worth of goods on a CC with a $15,000 limit and defaulted on it and accrued $3,000 in interest and late fees and such and settled with a CA for $3000.00, is your tax liability only for the $12,000.00 of actual "goods" you acquired or the full balance of the debt? I would think you can't really consider interest, late fees, and CA fees "taxable income" :confused:

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