In my benefiting everything by paying the credit card company a charged-off debt
3 attorney answers
You need to consult an attorney for an individualized review of your situation. This forum can provide general answers to general questions. The answer to your question involves the specifics of your situation, which you cannot completely set forth in a question here.
Sometimes, a recent payment on a defaulted account can harm your credit score more than on old debt that was written off. You should obtain a printed copy of your credit reports directly from each of the 3 credit reporting agencies. Go to annualcreditreport.com for a free copy of your credit report.
Do not believe anything that a debt collector tells you, especially if it involves your legal rights.
Mr. Lloyd is absolutely correct. See a lawyer before you do anything. For all we know, maybe you are already protected by the statute of limitations and entitled to tell them to pound sand.
Settling with them for less than what is owed will still hit your credit in a negative way. A charge off also hurts a credit score. If you are already behind on your debts then you may already have a low credit score. You can actually file bankruptcy and get rid of most debt and keep most property like cars, cash, and even houses. If you would rather save the $10,000 and discharge the $19,000 then you may want to consider your bankruptcy options. I recommend consulting with a bankruptcy lawyer. There are many great ones here on AVVO.
Please note: I am a licensed attorney in California. This response is intended only as general commentary. This response is not legal advice and does not create an attorney client relationship.