<prompt> Human: What happens after a bill goes to collections? If you have a large CC bill - say 15k - and it gets sold numerous times to a collection agency, which asks for 1k to settle, what happens then?What does this show on a credit report and how do you know the original bill gets paid since the account has been bounced around?  <response>: First you must to validate the debt in writing through certified US mail. Then you want to obtain the settlement offer in writing through the US mail saving the envelope it came in. Then you pay the debt with a cashiers check through certified US mail and a month later obtain a copy of the cashed cashiers check from the bank that issued it. Save everything for the next ten years so if the debt comes back as zombie debt you have proof of payment. If you happen to live in a State where the debt SOL is 15 years then keep the documentation for that long. You dont settle any account over the phone, give out debit or credit card or checking account numbers, through email or PDF files because the creditor will claim that the settlement papers are fake and the court has nothing to dispute that assertion except for your word. 