Ask The Get Out of Debt Experts Debt Collector Debt Settlement

If I Settle My Debt With a Collection Agency Can They Sell That Debt? – Tom

“Dear Steve,

Medical problems starting in 2006 which made me unable to work. I am finaly getting compensation, not big money. I want to offer 50% settlement to collection agencies. I’v heard that collection agencies agree to settle then sell the balance to another collection agency.

Is there a letter or form that would legaly keep the collection agency from agreeing to settlement and then selling the balance to another collection agency.

Tom”

Dear Tom,

If you have a written agreement that the current owner of the debt has agreed to settle for a specific sum then that agreement would survive any possible future sale.

I think the issue you’ve raised is actually when people make a repayment arrangement or enter into a settlement agreement and do not get the deal in writing. In that case, all bets are off.

There is no such letter. Just get the terms of the agreement with the current debt owner in writing or proceed at your own risk.

Please post your responses and follow-up messages to me on this in the comments section below.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.




About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

1 Comment

  • Hi I hired a bankrupt attorney to settle all my credit cards he was able to get all the letters we needed to clear the debt after payment was made. He settled any were from 7% to 45% 

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