settle with cc companies

[tryingfor4]

has anyone who qualified for chapter 7 had lawyer contact cc companies to try to settle? We saw first lawyer and way passed means test. Owe 30K to AMEX and 10K to Citi. This is basically the whole thing. I am wondering if offering them 10 cents on the dollar would not look better than nothing if lawyer confirms we will get the 7? I know, why? Thats a long story.

[JRScott]

In truth it is unlikely they'd accept plus you have to understand the implications of what you are suggesting. Most are not willing to accept less than half the debt and since these are the originals they might not even go that low.

The problem with settling debt also if the amount exceeds a certain threshold which is less than a thousand dollars, then the amount is considered income for the tax year.

[Phillymanhere]

If you can settle for cents on a dollar, do it! ... I don't think I've ever heard of cc creditors settling for such a low percentage. More like 50 percent is what I've heard. As previous writer said, you would have to add that amount "forgiven" to your income for the year for taxes.
But hey, if you can go for 10 percent or 20 percent, do it ... I unfortunately have never heard of that.
Good luck.

[Cali]

If you can settle for cents on a dollar, do it! ... I don't think I've ever heard of cc creditors settling for such a low percentage. More like 50 percent is what I've heard. As previous writer said, you would have to add that amount "forgiven" to your income for the year for taxes.
But hey, if you can go for 10 percent or 20 percent, do it ... I unfortunately have never heard of that.
Good luck.

I haven't either, but I do wish the OP good luck!

[SwimminUpStream]

My Am Ex. settled for 30%, my HD settled for 30% and BA settled for 40%. Chase on the other hand is a different story!

[Dollar Bill]

i HAD B OF A SETTLE FOR 10 CENTS ON THE DOLLAR. I KNOW I'M FILING BK BUT THINKING MAYBE I SHOULD HAVE TAKEN IT! I OWED 78000 ON TWO LINES OF CREDIT. SHE OFFERED 7800 DOLLARS OVER TWO MONTHS. I HEARD THAT IT IS SOMETIMES A WAY FOR THEM TO GET SOME TYPE OF MONEY OUT OF YOU.... BUT THEY CONTINUE WITH TRYING TO GET MORE.... ESPECIALLY IF YOU'RE A DAY OR TWO BEFORE BEING CHARGED OFF. JUST WHAT I HEARD.

[tryingfor4]

how / when did the offer come about? was it after you filed, late on pays????

[ssdsco]

I had unsolicited offers of 30 or 40 percent from many original creditors just before the debt was written off which was about 6 months past due.