Settlement

[Chrisla2077]

What's the highest "percentage off" you've been offered to settle a debt. Mine is 60% off...making me only responsible for 40%. Has anyone had a higher amount off?

How were your scores affected? Did any companies mark your CR as Paid in Full?

[chosen4th]

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@Chrisla2077 wrote:

What's the highest "percentage off" you've been offered to settle a debt. Mine is 60% off...making me only responsible for 40%. Has anyone had a higher amount off?

How were your scores affected? Did any companies mark your CR as Paid in Full?

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Don't forget they probably paid no more than 15% if even for your debt, so there is negotiation room... Its better for your credit than it being in collections but you need to ALWAYS ask for a deletion if you agree to pay it, which they need to give in writing first.. Some companies refuse, but some will do it.. doesnt hurt to ask.. Dont expect your score to go up much, but its a step in the right direction.

BTW i think my best i negotiated with RJM from the original debt being 750 to paying 300 with a deletion.. that felt good when it came off the report.. and when i got that deletion my score jumped 30 points or so, but everyone varies..

Ive never just paid a collection, alot of my stuff by the time i decided to clean up was so old, i played waiting game or disputed the crap out of stuff until they could not show evidence or had inaccuracies.

[Officer737]

Evaluate the debt first! I settled one a few years ago like that. The following year I got a letter from the IRS that said since the creditor wrote off the remaineder of the debt, they filed it as a loss with the IRS and I had to pay taxes on the part of the debt that wasn't settled because it was a capital gain to me! Then the IRS threw fees and pentalties on top of it

[chosen4th]

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@Officer737 wrote:

Evaluate the debt first! I settled one a few years ago like that. The following year I got a letter from the IRS that said since the creditor wrote off the remaineder of the debt, they filed it as a loss with the IRS and I had to pay taxes on the part of the debt that wasn't settled because it was a capital gain to me! Then the IRS threw fees and pentalties on top of it

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wow thats a first in my book.. that sucks

[Officer737]

I had never heard of it either. Tax people said it was something new the companies were starting to do.

[tonyric]

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@Officer737 wrote:

I had never heard of it either. Tax people said it was something new the companies were starting to do.

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This happened to me about 10 years ago on a mid-90's Bank of New York CC. It sucked that I ended up owing the

[Chrisla2077]

I've heard of this before. If I get the company to agree to mark it as PIF do you think it would make any difference?  Does anyone have any success with a PFD from Midland...i know they are sticklers.