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To settle or pay in full?


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I have about 20k in debt from a failed business venture about 6 years ago which I haven't been able to repay until now.


My credit score sucks, like 550. I have enough money to pay off the debts, but it's been a while now and the debts have been sold to a debt collection company that I think will take 20 cents on the dollar to settle. 


I have read in the past that you can send the companies some kind of paper with a check, stipulating that if they accept this check they agree to a non disclosure on this debt. Then you can contest the debt with the credit agency and since they can't respond after signing the NDA it comes off.


Would this be possible? I'm in the state of Louisiana and if so it would save me $16000 (which to me is a LOT of money!).


What do you guys think? I'd like to get my score up as I've gotten a good job now and hate having this looming over me.

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What you are referring to is a restrictive endorsement and it isn't legal in most states.


You are much better off sending a settlement offer that includes the terms that once you pay they agree to delete the trade lines, no 1099-c, and the remaining amount is disputed and will not be sold to another collector.  If they do not delete the TL after signing the agreement you have a breech of contract remedy.  I would also include an accelerated liquid damages clause should they breech.


Keep in mind that some creditors have a hard line policy of NOT doing PFD and you cannot force them to.

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Thank you :) That sounds amazing! 


Is there a good template you could recommend? If not, I'll do my best to do the research and put one together so I can post it on this thread and share with others. 


Once it's deleted it's like it never happened right?


One more question. If the debt was sold from my bank to a debt collection company, that selling of the debt still appears and cannot be deleted, correct? It's just the debt that I have with debt collection company that gets removed complete if they agree to the PDF.

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