I recently applied for a debt consolidation loan to pay off XXXX creditcard debts with Capital One, but I was told that the XXXX creditcard debts had been discharged. Capital One continues to send mebills every month and I send them checks for those cards. 
If the debts were discharged, the bank is allowed a tax deductionfor uncollectible bad debt, but they are collecting payments every month. How could the debt be UNCOLLECTIBLE? Each monththe statement shows a REMAINING balance. If the bank wrotethis debt off, where are my payments being credited too? 
Is the bank entitled to a tax gain, as per the write off, while stillcollecting payments? If not where are payments going?