Financial institutions today are massive and although much of the business is automated there is still the human element of mistakes that may come up. So for your own protection, it is imperative that you KEEP GOOD RECORDS.
When an agreement is made with a creditor and the final payment completed at some point you will receive a 1099 tax form provided by the creditor. Please present this statement to your Accountant or Tax Professional. We suggest you speak with an accountant or a tax attorney. The 1099 is your proof that either all or a portion of the debt was forgiven. It is wise to keep the statements in the event that the original creditor sells the debt and a collection agency tries to contact you. If that happens either an accountant or an attorney in your state of residence should respond to the collection company's 30 day letter stating the debt was forgiven with a copy of the 1099.
To quickly improve your credit rating while completing your Debt Settlement Program, we suggests 30 days after a final payment is made on an account that you contact the creditor and request a letter that states "You have completed your obligations". From there forward one copy to each of the credit bureaus. Within 3 to 5 months that change should reflect on your credit report. You don't want to wait until the program is over, you can do this after each settlement is completed and be ahead of the game. Don't forget; keep this letter for your records.
Also, every settlement letter your Debt Settlement Company provides you'll want to keep a copy for your own records. There can be occasions where a creditor may not have updated all of their information and may seek to continue to collect on a settled account. At that point all you have to do is provide that creditor a copy of the settlement letter as well as the 'completion' letter provided by the original creditor and the 1099 if you have received it and again have either an accountant or an attorney in your state of residence should respond to the collection company.
One reason many people find themselves in financial debt in the first place can be due to poor record keeping and the lack of discipline that comes with it. Keep good records and in the long run you'll be glad you did.
Source by Bruce P Collard
