Legal Question in Credit and Debt Law in Pennsylvania

Re: Debt Settlement

A charge off is when the credit company writes off the debt as uncollectable. They in fact may sell this debt to a debt collecting firm. A settlement is where you have agreed to have the debt marked paid but not in full. A settlement is better than a charge off. As to credit counseling I would be especially wary. The credit counseling company must under law be non-profit, but many unscrupulious people have a for profit management company that the non profit hires. Credit scores are a complex science, FHA might have more imformation for you and the effect on a setttlement as it relates to a mortgage. As to your final question, this only works if you send it to an address other then the regular payment address and it it accompanied by a letter that clearly states that if they cash the check they are accepting the amount as payment in full. The key is to place the words payment in Full on the back above the signature line as well as the memo line. (They can still try and weasel out, but those are the minimum technical requirements. I offer free consultations.