Giggles

Can the original creditor forgive debt that has been charged off?

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I have a debt over $30K that has been charged off. There is a law firm that is handling the collections efforts. They won a judgement. My credit report only lists the original creditor. No income to repay, but don't want to file for bankruptcy.

If I write a letter to the original creditor to forgive the debt, can it be done? How do I know if they still own the debt?

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1 hour ago, Giggles said:

If I write a letter to the original creditor to forgive the debt, can it be done?

If the OC went to the time and trouble to sue you and get a judgment they are not going to forgive the debt now absent REALLY extenuating circumstances.  In many states judgments are good for 20 years and renewable.  Not to mention added post judgment interest.

Did you defend the suit or let them get a default judgment?

1 hour ago, Giggles said:

How do I know if they still own the debt?

Who sued you?  If the OC is listed as the Plaintiff then they still own the debt.

You can also check your credit report:  if they sold it and a JDB sued you then the OC trade line should read "sold to another lender."

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I did appear to defend. The OC sued and is listed as the plaintiff. My thoughts were to ask for forgiveness of debt in hopes that I would not have to file bankruptcy. My house is currently in foreclosure and I have no income.

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1 hour ago, Giggles said:

The OC sued and is listed as the plaintiff.

Then unless they sold the judgment they still own the debt.

1 hour ago, Giggles said:

My thoughts were to ask for forgiveness of debt in hopes that I would not have to file bankruptcy. My house is currently in foreclosure and I have no income.

If you have a $30k judgment and a house in foreclosure it sounds like bankruptcy might be a really good idea.  You should at least discuss all your options with a BK attorney.

Who is the OC?

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