It just depends on who does the updating in some cases i got lucky and it said paid instead of settlement.

As far as settling a debt -- once you pay it, after 30 days the original creditor WILL report it as R9 $0 owed "settlement made".

What happens in the case where debt settlement companies pay the debt over a 24-36 period. I'm sure the original creditor would only mark the debt as paid in full one the credit report as soon as the settlement has been completed.

HAHAHA Raymond you funny, funny man.

As far as settling a debt -- once you pay it, after 30 days the original creditor WILL report it as R9 $0 owed "settlement made".

This is in comparison to a payment in full where if you paid the full balance owed, after 30 days the original creditor will report it as R9 $0 owed.

If you only owe one creditor that is in collections, and you are worried about your credit rating, believe it or not, but the R9 $0 owed looks better on you than the R9 $0 owed, settlement made.

I thought Average Joe was trying to generate some "home based" business revenue on this site.

Anyhow, if he has a judgment against him, he better not have a house or the creditor (for larger amounts) will usually issue a writ of seizure on any real property they own or any auto worth more than $5500. [Note: the Ministry of Transportation now sells their information on drivers to collection agencies.] Oh hang on a minute, Joe said he did own a house.

Oh well, maybe Joe will be taking the bus to see his welfare worker for the next 6 years so he won't need a car anyway.

Just wondering about it all.

Average Ray

Raymond,
I get a sense that average_joe doesn't plan on generating revenue in the next 6 years.

Hey average_joe,
You're absolutely correct...

Are you looking to get new work anytime in the near future?

Bottom line, if you're out of work, have no revenues and no cash, the creditors are going to settle. They've got no choice. Better something than nothing.

This will bite you in the ass if you get up and running and want to resume a normal life - credit wise in the near future.

Er, not quite. Paralegals rent for a bout $150 to $250 for Small Caims Court appearances. Usually, only one or 2 appearances would be required. Moreover, if they win, in provinces such as Ontario, the creditor can recover up to 7% of his legal costs in Small Claims Court or all of them in Divisional Courts (for amounts over $10K). (There may be a 15K or 25k small claims court limit depending on where you live.)

If the debt is paid to a collection agency, the account will be marked as paid or settled on your credit report. Principle and oustanding interest has nothing to do with R9 account ratings.
The account will be marked as R9 for 6 years from the date of last payment or written acknowledgement whether you pay off nothing, 5%, 10% or 100%. It won't help your credit rating. In fact, if you pay off the account, it only lengthens the 6 year period that the R9 or R7 item stays on file.

Ray

Ther'e is a judgement on me already but that don't mean nothing.If your not working what can they garnish.It's a matter of time they will settle or it will expire of my credit bureau in another 5 years.

Hey average_joe

4)It's what you tell them what counts.

This is true to a point.

With your $11,000 the creditor could have gone to a lawyer. That's about the range where it's cost effective to sue.

If the lawyers got you in his sights, it's not going to matter what you say. You'll have to answer to the courts in a formal process.

Hey ottawasingles,

When you settle with a creditor, they report it as R9 - Bad debt write off to Equifax and TransUnion.

This is technically because they have written off a portion of their principal. When the creditor takes a loss in assets, they want to let other lenders know!!