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Chase to United Collection, Inc. and back to Chase, with an offer. What to do?

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I am trying to help my uncle with his issues.....

My uncle has received multiple correspondences for 2 Chase accounts ($12,056.09 - DOFD 1/2019 and $4,169.00 - DOFD 1/2019). Both have been charged off by Chase and turned over to United Collection, Inc, to which he has received various communications about settlement offers, the last of which was received 7/8/21........

He recently(8/6/21) received correspondence from Chase again, asking him to settle the charged-off account(s)(2 separate letters), for the amounts of $1,205.61 and $416.93, respectively to stop the collection activities.


He lives in PA (4 yrs SOL).

He is currently dealing with a JDB lawsuit (~$2.7K Midland Credit) and has 2 other Separate CO accounts (~$7K and $8.5K).

He is trying to start handling these debts.


My question on the 2 Chase accts. mentioned above:

IS it better to settle these and take the hit on TL updates (and possible IRS reporting of cancelled debt!) or wait it out for another 1.5 years until they are sold to JDB and have him deal with court when that happens?


Thanks for all advice....(and possible next steps)





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9 hours ago, sambuzzy said:

wait it out for another 1.5 years



This varies by person, but for me if I had the means to take care of something now, I definitely wouldn't want to pay the psychological costs of having this unresolved.

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Chase offered 10% to settle the account, if he can get that with agreement to not 1099 for the remainder then jump on it, That is if he can come up with the cash to settle. He will be blacklisted by Chase whether he settles or not but it looks like getting additional credit is the last thing he should do.

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IndyPoolPlayer (or anyone with ideas):

How would one go about getting them to agree to NOT "1099" the remainder?...I ask because on the bottom of the official offer sheet from Chase, it mentions "Year-end tax information: If required by the IRS, we'll report the amount of cancelled debt to you on an IRS Form 1099-C in the appropriate tax year." ? Suggestions?

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You can ask if they are willing to settle without issuing a 1099, but they are supposed to issue if the amount if over $600, and both accounts would be well north of that, so I don't think the odds are good they would agree. 

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