Settle for half!

[Overmylimit]

I am filing sometime in the next few days according to the Lawyer, I have had 2 different CA call me in the last few days and the 1st thing they say is would you settle this debt for half what you owe?? Things must be getting deperate!

[optimistic1]

How long since your last payment and which credit accounts where they?

[danaf]

Half is not such a great offer. I had one large bank offer me pennies on the dollar for settlement....less than 1/3 of what I owed. Obviously I said no thanks.

[magyar123]

Tell them to shove their settlment offers to where the sun don't shine.

[Overmylimit]

One was with Citi 17k and one with Wright Express (business fuel cards) 5k. The guy was trying to be rude... and he caught me off guard since I didn't have that # stored in my phone. He kept repeating..what are your intentions to pay this debt...I replied with my Lawyers name and phone #....that pretty much killed the conversation.

[optimistic1]

How long since your last payment to Citi?

[treehugger1]

As most of my CC's approached charge-off, I had offers as low as 20 cents on the dollar. I would NEVER accept a reduced settlement amount from the OC. The offset is taxable income via 1099 unless you can prove to the IRS you were insolvent. If you are close to filing, then why worry about a settlement. If you are not close to filing, then let the accounts charge-off and go to CA's. I've had my best luck dealing with OC's about 30 days before chargeoff.

Once the account are charged off then they are generally assigned or sold to a CA. You can DV and anticipate another 30 - 60 days before a CA ever verifies the debt (if ever.)

I have 2 citi unsecured accounts, One charged off and the other will charge off in a few days. As far as I'm concerned, Citi can sitck it where the sun don't shine. They've offered me all kinds of 0% reduced payment plans, but the rurth is that their offers won't change the eventual outcome other than keep the SOL clock ticking in their behalf. Screw 'em.

[Overmylimit]

Last payment to Citi was in August. I agree they can shtik it..

[njguy1972]

Well

Look at your situation for settlements

If you are going chapter 7, then there is no reason to settle

If you are going chapter 13, then evaluate if settling will be better for your situation over the next 60 months.

Maybe you can settle for 40% of what is owed instead of being in a 100% payback chapter 13.

[lookingforward]

I got a letter from JCPenney yesterday. I owe 3K, they said I could pay 1K and they would report the account as paid with agreement to reduce balance.
I was pretty surprised, that's 2/3 off. I am 5 months behind.

[BKINAZ]

Before I knew better, I had offered Chase .30 on the dollar and those idiots came back with .85. They haven't budge since and I have learned a lot...settling for .20-.30 is no great shakes if still have to pay taxes for us (tax on $50k) and still have bad credit. BK is the only route if you are dealing with 5 figures or more. imo

[treehugger1]

BKINAZ, Sounds like Cap1! They just keep paying CA's they assign the debt to, and continue to assign the debt to another when the debtor doesn't play along. On the other hand, I've read posts where some creditors will wait until the last minute of SOL and then forgive the debt and issue a 1099. If you can prove insolvency, then no big deal. If you can't you now have another potential $.17 - $.28+ on the dollar tax liability. I will only settle for 100% payback on principle balance over several years (could be 5 - 15 years, as far as I'm concerned.)