Re: If I settle a car loan that was charged off 4 years ago, for 60% of the balance, does this restart the 7 year clock for this negative item to be removed from my credit report?
Hello, I had a car installment loan for $5000. I got behind and the entire $5000 balance was charged off in 2002. I have recently been contacted by a collector, and they tell me they will accept a settlement of 60% of the outstanding balance. I know I will have to pay federal income taxes on the amount they forgive.
However, my question is this: Will my 2002 clock be "reset" to 2006---meaning the negative reporting period of seven years will not come until 2013?
As it stands now, the 2002 chargeoff is due to go away in
2009 or so. . .I have searched the internet quite a bit, but haven't found the answer to this particular question. Any help would be appreciated. If you could cite a source, that would be great too. Thank you.