I have a question, I received a letter in the mail because a creditor sold my account to another creditor. The letter is offering a settlement amount half of what I owe. I called them today to see how it would report on the lady told me that it would state:
Settled in full - but the remainder balance would still show up. She also said to get the remainder balance off my credit report I would need to file a 1099
1. What does it mean to file a 1099 with my income taxes?
2. If it states "settled in full" but the remainder balance is still listed, how will that affect my FICO score? Will it go up?
Any advice is appreciated. Thanks!