Credit Card offers to reaffirm debt discharged in bankruptcy

[Joe Farmer]

I have not heard of that one but I am getting lots of colorful and pleading and cute, even, offers from the credit cards to pay them as low as 1/4 of the balance owed. Some have even said they'll report my account as 'paid in full'. They are obviously aware of their guilt for raping their customers, to be making such incredible offers, now.

[Dollar Bill]

What stage of delinquency are you in? Have you filed? How far past due are the accounts that they are making you an offer on.

[FreshLikeADaisy]

Joe, if you know you have to file bk, please don't do it. The only time settlement helps people out is if they have the money to settle and settling will change their overall debt picture in a significant way. Also, read the fine print very, very carefully, or get your basic terms in writing on letterhead -- signed by a real person -- before you fork over a check. Your terms should include a) reaging the acct for credit reporting purposes, and b) an affirmation from the credit card company that they will never, under any circumstances, seek to recoup the forgiven debt or sell that debt to a junk debt buyer, and c) or take any other steps that would allow them to negatively report the debt, allow anyone else to, or go after you for the remaining balance.

If these debts are the only thing standing between you and bk, sure, think about settling if you can get these assurances in writing. But if there's a lot more involved and you KNOW you're going to bk one way or the other, don't settle. It's good money after bad.

That, and they COULD have made these offers back when it counted instead of at the 11th hour. I have no pity for them whatsoever. So yeah, call me biased.

[oldbaddebts]

If you are going to file anyways DO NOT reaffirm a credit card. The 1 trade line is just not worth it, and if you reaffirm and miss a payment they will likely be quick to get a judgement and hound you into oblivion to get their money.

It may take a little time, but you will be able to get cards again soon after bk.

[ameliabedilia]

Don't they send you a 1099 as well and you pay taxes on it too? Don't do it if you have to file.

[no_it_all]

They are obviously aware of their guilt for raping their customers, to be making such incredible offers, now.

Actually, it is a tactical business decision. Credit card companies know that if you refuse to pay them, there isn't really much they can do. Sure, they can sue you and try to collect, but that usually just scares the customer into bankruptcy, at which point the credit card company gets........nothing.

Sooo 1/4 of your balance is better than nothing, so they make you an offer. As posted, since you will probably go bankrupt, don't pay them a dime...