Debt Settlement Protocol

I received a settlement offer from an attorney representing a credit card i couldn't pay off...now i can pay the 50% offer and want to do this...yet once i do what is to keep them from keeping that money and still coming after the rest? what steps should i take to make sure that the process stops once i hand them a cashiers check???thanks so much!

[bigun]

Have a lawyer draft a ltter saying basically this is the end. This payment completely retires the entire debt.

[JETX]

An alternative idea would be to have the creditor (or collector) send you his offer to settle in writing, including a clause that payment of agreed amount (specify!!) would constitute payment in full of the claimed debt.

Then, after you receive the letter, send them payment by money order. Do NOT pay by personal check (to keep them from 'raiding the cookie jar').

1) Get them to send you a letter that says the debt will be considered settled in full upon payment of $XXX.

2) When you send payment, do so via certified, return receipt mail.

3) Use a money order or certified check. On the check/mo, use a restrictive endorsement on the 'memo' line. Have it say: Payment in full, account #xxxxxxx, (your name).

That'll cover you.

Remember, there's nothing preventing them from sending you a 1099 for the unpaid balance. In other words, the bank will likely send you a 1099 showing the 50% unpaid balance as income. You'll be required to show that income on your tax return for the year you settle the debt.