Settlement amounts owed to credit cards

[skyline1222]

I have returned. My bankruptcy was dismissed as I hoped it would be. I have contacted every credit card company I owed money to. Actually I contacted the collection agencies and attorneys acting in their behalf. ALL agreed to settle for amounts less than the amount owed. One things bothers me. One of the attorneys who I spoke to last week said he contacted the credit card company involved and they agreed to settle for x amount of dollars...This by the way was the same amount the credit card offered to settle with me for back in May just before filing Chapter 7.

I received a letter from this law firm and it said how to make out the payment and who to mail it to but in that wording was the phrase "This payment should not include any references such as paid in full or any other type of restrictive language".

It sounds to me that they want to keep the doors open to pursue me for additional monies down the road. Am I making more of this wording than I should or am I on the money? What can I do to prevent ANY third parties or the credit card company from coming after me in the future for more than the amount we agreed to settle on?

ANY input would be appreciated

Thank you
Skyline1222

[AngelinaCat]

Skyline, I don't know your history. Even though your profile shows you have made 16 posts prior to this one, because of our recent problems with the forum, I cannot, at this time, pull your history to see what you posted before. So if you can, please give a short synopsis of your situation. Thanks.

However, from what you posted here, it looks like you fell victim to a scam. I hope I am wrong, but I won't know without more information.

[skyline1222]

Angelina Cat

History is as follows. Filed chapter 7 and then received an inheritance which allowed me to negotiate settlements with the collection agencies, credit card companies and attorneys who now had my case since I filed bankruptcy. This law firm in question was handling my account for a major credit card company and I received notification from the credit card company that this law firm represented them. Shortly after I received my inheritance the credit card company offered to settle for a lesser amount and that is the amount I agreed to settle for with this law firm. Last week I contacted this law firm and asked if the credit card company was willing to settle for the amount the credit card company had offered me back in May. He put me on hold and said he spoke to them and they agreed to settle for $1700. He then mailed me a letter and it started out that this letter was to confirm the payment arrangement proposed during our conversation last week. The payment is due by Oct 10. The payment should be made payable to the credit card company but mailed to his law firm. Note the acccount number on your payment to ensure your acccount is credited with the payment. "The payment should not include any references to "paid in full": or any other type of restrictive language". I checked back in my recordss and this is indeed the law firm the credit card company said they were referring it to. I don't think its a scam but I want to protect myself from any further attempts by ANYONE to collect any additional monies on this account. He stated his firm would also be sending a 1099 form to me because I would have to pay taxes on the amount I saved from the original amount of indebetedness. In other words if I owed 7000 and settled for 4000 I would have to claim the 3000 saved as income on my taxes this year.

I am sure it is on the up and up but as I stated want to protect myself from owing any additional monies on this account in the future. Hope this helps. Kind of unusual as I had already filed bankruptcy before receiving notice I was an heir. Wanted to do the right thing and pay but wanted to settle for less than originally owed. ALL my debts were to credit card companies and I had to stretch the money by negotiating so I could pay them ALL off. Hope this helps. What do you think?

Thank you

[keepmine]

I'd want language in the settlement letter to the affect that, the unsettled portion will not be sold, transfered, or, assigned to a 3rd party collector. That the settlement resolves the matter between you and the creditor.
Since you have a few dollars, speak with a lawyer that handles consumer issues and see how they'd proceed.