Hmm... I need to find out myself. I don't know what is the answer to that question. I'll do some research and get back to you if I find an good answer. You should email the people at Discover Card as they probably could give you an answer..

Start the SLs now...get to CCs later..

The CCs may be out of sol depending on your state, so you may be off the hook on them..

If by "working off the books" you mean you're not filing a tax return, you could be opening yourself to even more problems. If you are indeed filing a tax return, then how does that hide your income?..

I thought he said in another thread he was self employed? Maybe that was someone else with a SL question though.....

I've been self employed for several years. I work for cash and do not file an income tax return...

It is 3 separate CCs. One has a judgement. One is a chargoff. One I may be able to slip past due to the SOL...

You may want to do something about changing that. Doing the above tends to most always turn out badly eventually, and the longer it goes on the more expensive it gets in the end..

Not mentioning it to be a PITA, just hoping you'll find a way to head off future troubles before they happen..

If you are talking about a PFD with an original creditor, those are almost 100% done as a nicety. You can't condition payment to an OC on their deleting the TL, they have other tools at their disposal to get payment out of you- so there's really no leverage there. You make your settlement agreement, and then you try to get someone in authority "help you recover from your painful financial situation". Occasionally they'll go for an improvement in reporting that's predicated on your completing the payment arrangements..

If the account is past SOL, or is with a third-party collector -the story changes. You have more leverage in these situations, and the chances your PFD will be accepted are inversely proportional to their perception of the likelihood you will pay otherwise. If they think it's the.

Only.

Way they'll ever see a penny- you're in...

Sooner or later the IRS is going to want you to file. They will wait and give you a few years to hang yourself, then, based on your past returns and assuming no deductions, they will come up with a figure you owe for each year. You'd better be timely in proving you don't owe that amount or they will find something to lien. Trust me..

This post has been edited by.

Elizabeth_Speaking.

: 01 January 2010 - 12:44 AM..

I believe that my one Discover credit card that has a judgment is still with the OC. I get calls and a letter once from the law office that filed the suit but I don't think that they own the debt. What "other tools" does the OC have at their disposal ? I live in PA. They can not garnish my wages if I got a job on the books. The only thing that they can do is put a lien on real estate that I own. I don't own any real estate. What else can they do ?

I'm not trying to be smart, but how exactly is the IRS going to prove that I made any income ?

Well, you don't have to file an IRS return unless you make more than a certain amount. The IRS tracks things like 1099's and "on the books" wages to see if, in their view, you should be filing. They can, in search of further info get bank records and pull your complete credit reports (not just the limited stuff normally seen). Then it's a cost/benefit calculation as to whether they pursue you. It's also very hard - if not impossible - to get long term legal work "off the books" so your ability to earn serious dollars is impaired..

The problem is the difficulty of getting into the normal business world of "on the books" jobs then you can look at credit issues...