Ok so as some of the readers know I am in the middle of my rebuild and making good progress. So I reached out to my local credit union who I have had a relationship with for like 7 years at this point and never had any issues with my accounts and they can of course see all my banking history with them. So the long and short of it is that I went to them for a personal loan so I could roll up some old credit card balances me and my wife have from when she lost her job.
They were very open to the possibility but needed me to take care of my repossession from Capital One. My balance according to the credit reports is $10,786. So I decided to approach them today with the knowledge that I was past the SOL(4 years in my state) and see what they had to say. I pointed out that I never received the documentation on intent to sell or the breakdown of the balance and costs that lead to this balance.
He provided me the address the documents were sent to, which was my Father's house despite the fact I updated my address with them when I voluntarily surrendered my SUV. Which I called into question on this mere fact alone.
So he is going to provide these documents but he said they were willing to work with me due to the circumstances around this time. He offered me to settle for 15% of my balance before interest and fees...which is roughly 8400...so they amount they are willing to close for is roughly $1250! Which is GREAT but...they will only mark it as settled for less and note that I am no longer responsible for the balance. They themselves said because of the age of the account they will not persue legal action.
I asked for deletion but they wouldnt commit to that. Should I press for that or take the deal. I mean I am ok with the cost...
Will this cause the balance to report as $0.00? Also I am aware of the 1099-C ramifications but I am pretty insolvent considering I own mainly clothes and a few appliances. My wife owns mostly everything so I can probably exclude most of the forgiven debt. I also plan to try and GW after I settle if I infact go this route.
Any advice?!?
Thanks in advance!
