I am wondering what ways people have tried to settle debts
creditors before filing bankruptcy. This example was emailed
to me. It makes some sense.
"If you can get the help of a friend, lawyer, or legal aid society
so much the better.
Have a separate letter typed to each individual creditor along
these lines:
Gentlemen:
I have been retained by (or, represent) Mr._________ for the
purpose of settling as many accounts as possible before filing a
petition in bankruptcy.
Mr. ___________ total debts at the present is $5000.00, with
assets on only negligible value.
In an effort to settle honorable with his creditors, Mr.
________ has managed to raise $500.00 for this purpose. This
money will be distributed on an equal percentage bases only among
the creditors who accept this offer.
Of course your percentage my be as little as ten percent,
and may be much more (may be large enough to repay the debt),
dependent on the number of creditors accepting this offer.
The funds in settlement of debts due will be mailed on
_________. (write in the date of 10 days from the time you mail
this to the creditor.) Your response must be received prior to
this date.
To accept this offer, all you need to do is sign the
enclosed copy of this letter and return it to me using the
enclosed self-addressed envelope.
Pursuant to the provisions stated above, we hereby agree to
accept a minimum of $________, or a greater amount pursuant to
the number of creditors accepting this offer, as full payment and
settlement on account number _______________.
Name of Creditor _______________
Authorized signature ___________
Date ___________________________
A letter like this is very effective. None of the other
creditors will want to be the fall-guy. Sure they only have the
chance of receiving only 10%, but by the same token there's a
chance of receiving alot more and by nature, creditors love a
gamble. They'll jump at your offer, knowing that this is one
play the stand to win at least something, and cannot lose more
than what has already been lost."
creditors before filing bankruptcy. This example was emailed
to me. It makes some sense.
"If you can get the help of a friend, lawyer, or legal aid society
so much the better.
Have a separate letter typed to each individual creditor along
these lines:
Gentlemen:
I have been retained by (or, represent) Mr._________ for the
purpose of settling as many accounts as possible before filing a
petition in bankruptcy.
Mr. ___________ total debts at the present is $5000.00, with
assets on only negligible value.
In an effort to settle honorable with his creditors, Mr.
________ has managed to raise $500.00 for this purpose. This
money will be distributed on an equal percentage bases only among
the creditors who accept this offer.
Of course your percentage my be as little as ten percent,
and may be much more (may be large enough to repay the debt),
dependent on the number of creditors accepting this offer.
The funds in settlement of debts due will be mailed on
_________. (write in the date of 10 days from the time you mail
this to the creditor.) Your response must be received prior to
this date.
To accept this offer, all you need to do is sign the
enclosed copy of this letter and return it to me using the
enclosed self-addressed envelope.
Pursuant to the provisions stated above, we hereby agree to
accept a minimum of $________, or a greater amount pursuant to
the number of creditors accepting this offer, as full payment and
settlement on account number _______________.
Name of Creditor _______________
Authorized signature ___________
Date ___________________________
A letter like this is very effective. None of the other
creditors will want to be the fall-guy. Sure they only have the
chance of receiving only 10%, but by the same token there's a
chance of receiving alot more and by nature, creditors love a
gamble. They'll jump at your offer, knowing that this is one
play the stand to win at least something, and cannot lose more
than what has already been lost."
I'll be watching, you may never know when or how, but I'll be there. I am there now....
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