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ANSWERS: 1
  • Once a debt is charged off, there is little incentive to pay it as far as your credit score is concerned. The damage has already been done and, unless you are able to negotiate deletion of the account in exchange for payment (called a pay for delete agreement), then you should not pay. However, if the creditor or collection agency thinks that you have enough assets to pay, or that you will have enough assets at some point in the future, then they may decide to sue you for the debt. If they sue you and win, then they can start doing very, very bad things to you...like taking your stuff and selling it, garnishing your wages, etc. If you are in danger of being sued for the debt, then I ALWAYS recommend paying. Your best bet is to try to negotiate a pay for delete agreement. http://creditreportscrub.blogspot.com/2008/07/sample-pfd-letter.html

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