QUESTION
If I finance this new auto loan, can they collect money from me through the new loan on my old debt?
Asked on Jan 27th, 2017 on Bankruptcy - Ohio
More details to this question:
I am trying to buy a car and have been approved which I was kind of surprised by because I have an old credit card through them that I defaulted on which I then went through a debt settlement agency on. The debt settlement agency was not able to reach an agreement on it. I made the debt settlement company pay me my money back. That debt currently shows on my credit report listed under the name of the debt settlement company and I just received a 1099 C form in the mail from the debt settlement company stating that they have reported the $8000 to the IRS and must report it as additional income on my taxes. It says that the debt was written off in July of 2016. Will they try to hold my title for repayment on the old loan as collateral? Will they use my information to try and collect/garnish my check?
1 ANSWER
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The "debt settlement agency" isn't a trying to settle your debt with the lender, they BOUGHT your debt from the lender and are trying to collect it themselves. Merely because they wrote off the debt, doesn't mean another company will try to collect it in the future.
Answered on Jun 01st, 2017 at 6:36 AM