Discover offer to settle

[toomuch]

I received an offer in the mail from Discover. There was a FREE 60 minute phone card attached. I thought that was a bit humourous since they haven't been able to contact me by phone.

Anyway, their offer is for me to pay them 20% of the $7800 I owe them.

In small print at the bottom of the page, it stated that by activating the calling card, I was agreeing to the offer. HA!

However, if all of the cc companies would offer me the 20% payback, I may could avoid bk. My cc debt between hubby and I is 120K.

Just wishing thinking. At 52, I should be so much wiser than to have gotten myself into this mess.

[poorme]

Can't help you with the payback issue, but just wanted to tell you that you're not alone. You would be absolutely amazed at the number of people you know at this very moment who either are or have already gone thru bk. Yeah, I wish I'd done better too. In lots of ways. But life is what it is and I'm turning my optimistic face towards the future and concentrating on me and my DW from here on out. Hang in - things will get better!

[treehugger1]

toomuch and poorme, I don't feel as if I am the only one trying to swat flies in the dark. I do have a question, how long ago did you stop paying Discover? I'm also doing what I can to "prepare" (stall, whatever) chapter 13. I can only blame myself for my current financial predicament, but what the heck, might as well find some type of comic relief or at least be an aggravation to creditors and CAs. I'm 51, and I have to think the reason citi and BOFA/MBNA want to make a deal with me is that by the time their system ever catches up to me, I could be retired and living in Honduras. Creditors seem to be all over the place with debtors when it comes to "settlements." Being 51, I could give a sh*t less about what the big corporations know about me. I even volunteer my income, employer, and even helped them with knowledge about my state laws regarding original creditors, judgments, wage garnishments, etc. LOL. I do hope you have some protected retirement funds out there somewhere. Keep in mind that should the economy really go south, a little bit ($75K - $150K) of credit card/unsecured debt won't be anything comapared to the number of $250K + mortgages out there. In our minds, we might think we have significant debt and trouble holding off a BK 13, but in the near future, our unsecured debt might be a pittance compared to a debt of several hundred $K secured against property that noone wants. Keep in touch here on the board. I'm hoping to hold out until early fall. I'd love to hold out until next December and get my Oregon "kicker tax" rebate of about $2K. Cheers.

[toomuch]

toomuch and poorme, I don't feel as if I am the only one trying to swat flies in the dark. I do have a question, how long ago did you stop paying Discover? I'm also doing what I can to "prepare" (stall, whatever) chapter 13. I can only blame myself for my current financial predicament, but what the heck, might as well find some type of comic relief or at least be an aggravation to creditors and CAs. I'm 51, and I have to think the reason citi and BOFA/MBNA want to make a deal with me is that by the time their system ever catches up to me, I could be retired and living in Honduras. Creditors seem to be all over the place with debtors when it comes to "settlements." Being 51, I could give a sh*t less about what the big corporations know about me. I even volunteer my income, employer, and even helped them with knowledge about my state laws regarding original creditors, judgments, wage garnishments, etc. LOL. I do hope you have some protected retirement funds out there somewhere. Keep in mind that should the economy really go south, a little bit ($75K - $150K) of credit card/unsecured debt won't be anything comapared to the number of $250K + mortgages out there. In our minds, we might think we have significant debt and trouble holding off a BK 13, but in the near future, our unsecured debt might be a pittance compared to a debt of several hundred $K secured against property that noone wants. Keep in touch here on the board. I'm hoping to hold out until early fall. I'd love to hold out until next December and get my Oregon "kicker tax" rebate of about $2K. Cheers.

treehugger, we made our last payment to Discover in September. I'm on a mission to prolong the inevitable also. Heh, heh.......Honduras, eh? Hmmm, now you've got me thinking

The FMV on my home is only 142K. We paid 159K for it 4 years ago. I think we financed 148, give or take a bit. So, no equity unless they call for an appraisal. We have added a few things since we bought it.

Good luck holding out and yes, I'll be hanging out here for quite some time, I'm sure.

Toomuch

[Spartan]

....However, if all of the cc companies would offer me the 20% payback, I may could avoid bk. ....

Why not make them all an offer they can't refuse? 20% payback or eat a bk.

[poorme]

I LIKE IT!! Of course, the creditor gets a full write-off and favorable tax treatment courtesy of our government when we bk, because it's 'court-ordered'.

[Granny]

Just a thought

If you take a 20% offer and they write off the balance, you more than likely will get a 1099 for the difference.

[SinkingFast]

Just a thought

If you take a 20% offer and they write off the balance, you more than likely will get a 1099 for the difference.

This is probably true.

And the Settlement offers we got,........... The Creditors didn't wanna take payments. They wanted to be paid in one lump sum amount.

Others have posted here that when they reached a Settlement, the Creditors did agree to take payments over 12-18 months.

So that's something you need to consider too. How, exactly, does Discover want the money? In one lump sum, or 12-18 monthly installments.

[toomuch]

This is probably true.

And the Settlement offers we got,........... The Creditors didn't wanna take payments. They wanted to be paid in one lump sum amount.

Others have posted here that when they reached a Settlement, the Creditors did agree to take payments over 12-18 months.

So that's something you need to consider too. How, exactly, does Discover want the money? In one lump sum, or 12-18 monthly installments.

See, this is why I love this board. On the other hand it makes me aware of how ignorant I am. A 1099 never occurred to me.

I haven't discussed anything with Discover. If anyone wants anything in 12 - 18 months, it ain't gonna happen. Foolish me was actually thinking I could persude all of the cc companies to let me pay back 20% to all of them over 5 years. I'd rather do that than file bk. I think.

Toomuch

[treehugger1]

It is interesting to note that some of the big corporations are willing to work out short-term or long-term solutions. I mentioned elsewhere that Citi gave me reduced payments at 0% interest for 12 months, and BOFA/MBNA are considering a 5-year payment plan at 1.75% interest. I think there are times when they realize what is in their best interest at least in the short term. I pull my credit report once per month and examine it. I see the citi partial payment plan, I have one collection showing I'm paying, and one credit union has now closed my account but offered no other comment except showing current and paid as agreed. Most of my CC's are over their limit and have been so for many months. Some have stopped adding over-limit and late charges (I guess they are hoping I'll pay something). The "in-your-face" statistic is the one showing my monthly payments of $3500 and $165K debt (secured and unsecured). I'm sure that is a real show-stopper for the few creditors who are occasionally checking my report. Through all of this, I have a credit score of 610 - 630 LOL. I do not want any write-off where I owe taxes. But, i've decided not to roll-over to BK until I see everyone's hands. I'm not a youngster, I'm willing to live with a screwed up credit report, judgments, garnishments, etc. and worry about cleaning them up later. In the meantime, I'll pay what and when I can, and see who comes to the table. Best to all. This is not easy.

[treehugger1]

I should add that I only stopped paying my non-local unsecured creditors about 50 days ago. If you are in the BK "planning" stage, you might try to satisfy or work with the local folks. One burned me with a small calim judgment, so I begged and pleaded for them to consider a new payment arrangement. They agreed, for now.