Need advice on a settlement offer

Base your offer on the original amount; it depends on how delinquent the account is and what State you are in as to how much to offer.

How delinquent is when you last made any sort of payment.

The State will determine if you are running close to the Statute of Limitations for the debt.

It really doesn’t matter if you use USPS or another delivery service; that’s up to you; but, yes, get delivery confirmation either way.

Hope this helps,

You could have used IRS Form 982 to exclude canceled debts from your income report if you were insolvent at the time the debt was canceled.

You only needed to be insolvent (the amount of your debts are greater than the amount of your assets) by the amount of the canceled debt, so if you were $900 or more up-side-down, then would not have needed to pay income taxes on that canceled debt.

Also, when you consider the amount of taxes versus the amount of interest you will pay (either on that debt or on future credit with very high interest because of a bankruptcy on your credit file), the additional amount in taxes may be less (sometimes much less).

The IRS webpage about this is located at:

Scroll down and read the “Insolvency exclusion” section. They even provide an example.