Need help from you guys

[overmy]

Hey guys it looks like there are lots of people in the same boat as I.I need some frank honest opinions. I have 55K in unsecured debt. Chase 25k Citi 30k, all other of my loans and debts are fine I was first going use ACOPIA debt service and make monthly payments. This would knock off 15-20 K. I have educating myself on my options. I went to see BR attorney, he advised chapter 13 same kind of deal 1200 payments for 5 years. I now want to explore direct negotiations with both Citi and Chase. We are 2 months out but get phone calls every hour between 6am and 10pm.
I read through all of these postings and got way to confused with the ABC- POF-DV-CPU- you know what I mean, I want to make them a cash settlement offer so I need advise
I am not educated on what state laws protect me (how long do I wait before they take next step. When will they take action? Do I need to contact them with an offer?
What is the next step they take a Lawsuit and Court Judgment? Chase has made me an offer to make payments and drop all the late fees and charges. That's it.
I hear all the time of settlement for dimes on the dollar, what do you think at this point I would need to offer % (percentage wise) for them to settlement
I need help and am overmy____ !

[lexigirl]

Some ideas

It is possible and not too difficult to settle with credit card companies by yourself. From what I've learned, you will get the best offers right before charge off, which happens (depending on each company) at around 180days past due. They may call you to offer a settlement, but if they don't, you can call and ask for the settlement dept. Tell them you are prepared to file bk and already spoke to an atty. You will need to have cash, save as much as you can, because settlements have to be paid in full within 93 days of you accepting the settlement offer. So basically tell them your hardship has driven you to the brink of bk, you have an amount equal to about 20% of what you owe and go from there. Also mention if they don't take it you will approach another one of your creditors since you want to settle your accounts. I did all of the above, including consulting with 2 bk attys. and by the graceof God was able to get a settlement with BOA for 28% at about 150 days. Good luck

[treehugger1]

From what I've read on other posts here, Chase is aggressive. I would not count on getting any great settlement deal from them. As always, if you don't have the cash buildup to pay the settlement, you will generally find yourself back at stage 1. I would give serious consideration before you throw money down a rathole. Do so only after you have written agreement and KNOW you can make whatever payments you agree to.

I never had a chase account, so I don't have personal experience, however, any creditor can go for a suit and judgment long before chargeoff. I had American General unsecured and they sued at 90 days. It was small (under $2000,) but the local office filed in small claims.

[overmy]

Help I am overmy

The law suit is what scares me, That's why I will make a CASH on the spot settlement. Should I make first move and tell them to give me an option
( which is the cash settlement) or will that give away my leverage.
One last question I am willing to stick out 200 days if needed but again the lawsuit makes me nervous. Do you Know " Will I be notifed before law suit and would that be too late to make offer. I owe the debt but the 29% intrest pissed me off. Citi basicly told me 3 months ago, We are rasing your interest to " help pay off the other Banks" I guess 700 billion is not enough if they were to offer me 30 % I would take that and go home.

[treehugger1]

They will file for suit and then you will be served notice. There is NO WAY to predict what/when/who will sue you. If you can't deal with a lawsuit/garnishment/collections/judgments, then you shoudl bite-the-bullet and file the BK. Or, ride it out, see if they sue you, and if so, then immediately file the BK to shut down the suit.

[catleg]

I am about 6 months past due with Chase and Citi and they are both offering to settle for about 50% of the current inflated balance, so if you assume it's about 15% higher than when I last paid, that's about 60% when you add in all the garbage late and over the limit fees.

I actually think you are better off post-chargeoff. Before 180 days they're still trying to get you back on payments, after 180 days it's a pure recovery situation. Just depends on how quick to the trigger they are with a lawsuit after that, which may partially depend on their perception of your income and assets and who else you may be paying or not paying.

Definitely worth a try. Citi came down fairly fast initially. Since you only have the 2 cards it's a possibility.

[DeadManCrawling]

Depends on your willingness to sweat, in the end.

My wife and I quit paying on all unsecured 2 and a half years ago. During that time, one creditor, her smallest, got a judgement for about $800.00. No way for them to collect on it, since she is not working and has no bank account in her name. That was about 9months after we stopped paying.

We owed about 140k at the time, I think.

Another year and a half and the SOL will be passed, which means they can no longer sue us. Of course the credit reporting limits will last a few years more.

It is possible, perhaps even likely, that another will sue us, and we haven't decided yet what course to take. I have another surgery scheduled in the next couple months and we may file shortly after that.