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How to protect myself when making lump settlements


debtfreesoon
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Hello Everyone.

Here is my story in brief... Got in to credit card trouble with three cards due a combination of health issues/job loss and irresponsible financial management. All three went to collections. One in house, two which appear to be debt buyers, Asset Acceptance, and Stoneleigh Recovery Associates.

After stupidly ignoring this problem for over a year (thus missing my window for Debt Validation, but I know I owed the original creditors) I have negotiated settlements on the phone with each and have family members willing to help me pay the debts. I have requested that each of these entities (the original creditor and two collections agencies) send their offers in writing.

My question: How can I be assured that they (or others) won't come after me for the balance of the debts? How can I know that this matter will be settled in full? I have read that writing "Cashing this check constitutes payment in full" will not cover me in all states. I am in Michigan. What can I look for in the letters?

Thank you in advance for your help.

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The letter should state that the payment settles the debt in full or any wording thereof. Do not give them any money until you get such a letter. Once you do, send a money order or bank cashiers check, staple your receipt copy to the settlement letter and KEEP IT FOR THE REST OF YOUR LIFE. You can bet that the JDBs will call you again for the debt so you must have proof that you settled it. Without written proof, they will say that the person who agreed with the settlement was not authorized and does not work for them anymore. They are lying if their lips are moving so get anything in writing.

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