Hi Debra,
Usually when it comes to the IRS you will have to pay the debt,even if the original creditor does not validate. If you do not they can attach any form of income you have coming to you. Apparently the original creditor has written off this debt. Do you recognize the debt? If so than I would safely assume it is yours. Even if the creditor sells it and then you settle the debt for less you would still have to pay taxes on the amount left over. I do not know exactly how this works, I just know it is legal. When you do not pay a debt it is considered income. (they always get their taxes in one way or another). You may want to wait and see what others say but I do know you will probaly be held responsible.
Hi Debra,
Usually when it comes to the IRS you will have to pay the debt,even if the original creditor does not validate. If you do not they can attach any form of income you have coming to you. Apparently the original creditor has written off this debt. Do you recognize the debt? If so than I would safely assume it is yours. Even if the creditor sells it and then you settle the debt for less you would still have to pay taxes on the amount left over. I do not know exactly how this works, I just know it is legal. When you do not pay a debt it is considered income. (they always get their taxes in one way or another). You may want to wait and see what others say but I do know you will probaly be held responsible.