Just had BofA call me, and tried to talk me out of a Ch.13

[optimistic1]

They called and left a message, when I called back, they were actually pretty nice and said they wanted to touch base with me.

I calmly explained to them, that I fired my old attorney, and gave them the new info. I told them it was going to be a 13, and we will be filing in a couple more months.

They said, if your gonna do a 13, we can settle your 3 BofA cards totaling more than $10,000, for a measly $2200.

Sounds tempting, my only fear, is that not all of the creditors will do this, but, these accounts total 1/3 of our total debt, which if I get one more third to do this, I might not file a BK.

But ultimately, we will be better off in the end filing a 13, because, to settle, I would need to save up all kinds of loot, and the baby is almost here, I will need that extra money for sure.

We defaulted on the three accounts in November, so this is charge off season for us.

[sassiebaz]

Yeah, I can see your frustration. With the baby coming, that $2K will go alot farther then you can imagine. Dont let temptation getcha! So, you fired your attorney? Did you go with M/G?

[jojo]

I disagree. If you can in any way afford it, go for the payoff. It will be on your credit report, but not for 10 years.
Plus you have to come up with the money to pay a new attorney.
Your best bet is to pay off the debts if you possibly can.

[mamaof2]

just be careful...if you do pay a settelment amt to a creditor, you will get a 1099 for taxes and have to claim the unpaid part as income, this happened to me last year and we had to ammend our taxes (PITA)

[jojo]

just be careful...if you do pay a settelment amt to a creditor, you will get a 1099 for taxes and have to claim the unpaid part as income, this happened to me last year and we had to ammend our taxes (PITA)

Oh, that's true and good to know. The written off amount is considered income on your tax return.

[mamaof2]

it just kinda blows, because yeah, if you can pull it off, its great to get it done without the BK, but in the end having to claim 40,000 in extra income would be really bad, come winter time. I know i have leared my lesson, i hate credit cards, and will NEVER have another card ever again! This causes too much stress.

[optimistic1]

So, you fired your attorney? Did you go with M/G?

Well no, I still have the one I told you about, but the first one I hired last year in October is the one that got fired. I signed up for the Metlaw plan from my employer, but I cant use it until July 1st. Then I will ask my attorney for a refund, and stash it under the mattress to survive my 13.

I disagree. If you can in any way afford it, go for the payoff. It will be on your credit report, but not for 10 years.
Plus you have to come up with the money to pay a new attorney.
Your best bet is to pay off the debts if you possibly can.

It is highly unlikely, as the costs for daycare and such will just get in the way of me trying to save any money. My chapter 13 plan will basically require me to just pay what I have been paying for my auto loan, except, it will be paying for a crammed down auto, the trustee and attorney fees, and then about $1000 to unsecured. In the end, the remaining 34,000 unsecured will be discharged. Yes it will be on there for 10 years, but honestly, the thought of obtaining more credit cards just sickens me, so I could care less how bad my credit is. All I will need is a new car afterwards, and auto lenders will work with that, granted, I will pay more in interest, but I dont care, as long as the car is new and has a good warranty, I will pay the extra interest, and then refinance it after 6 months.

just be careful...if you do pay a settelment amt to a creditor, you will get a 1099 for taxes and have to claim the unpaid part as income, this happened to me last year and we had to ammend our taxes (PITA)

I do know about the 1099 for forgiven debt. Although, you are only required to pay taxes on those amounts, if you are not insolvent. Which, I am, so they could send me 1099's all day long, I would not need to pay taxes on it.