Neg w/CA, how can I be sure no CR blemishes or other will show?

[jtuttle]

What is the name of your state? TEXAS

I'm negotiating with CA, how can I be sure no CR blemishes will show?

I’m negotiating with a CA on paying off a CC debt in full. (Can’t stop it, it’s too late) What conditions or verbiage in the settlement letter do I need to assure there will be absolutely no blemishes on my credit report or any income considered through the IRS or any repercussions ever once I do this. Do I write “PAID IN FULL” on the check? Thanks to any...

 

[Ladynred]

A restrive endorsement/accord and satisfaction isn't going to work unless you follow an exact process and even then you'd have to check TX law to find out if they're even supported in TX - they aren't in many states.

If you're negotiating "pay for delete" - meaning they delete all entries from your reports in return for payment, then put those terms in your settlement letter. If its not on your reports now, then you word it so that they NEVER put it on. Some scurvy CA's will put the entry in AFTER you pay !

As for the 1099-C, most CA's don't issue them and if they decide to do so there's not much you can do to stop them.

Just make sure you get a signed agreement before you pay them a dime.

 

[jtuttle]

Update: (so others can also gain from my efforts) I obtained a 30 day extension to the "PLAINTIFF’S POST JUDGMENT REQUEST FOR PRODUCTION AND FIRST SET OF INTERROGATORIES” from the CA thru my Attorney. In the meantime the CA has offered to settle for an amount way beyond my means to repay. My CPA has indicated that since I have so much debt and will have a lot of debt for many years due to losses my business (a Texas corporation in which I am the only stock holder) that I should list only my personal assets (not much but house, car & very low cash in checking account) and let the CA see just how little there is to be had. The looming question is what if we don't reach a settlement and the CA obtains a writ. What can they drain from me and for how long? Thanks to any...

 

[Ladynred]

TX is a very debtor-friendly state with lots of exemptions so there's not a lot of EASY targets for them. They can't garnish wages and your homestead is exempt. They can go after bank accounts and any non-exempt assets, but it you have nothing non-exempt - they just won't get much of anything. Judgments in TX last 10 years and are renewable so they can keep coming after you for a LONG time to come.