top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

My creditors want to settle!

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    My creditors want to settle!

    My major creditors citi and chase via lawfirm CA's want to settle at 50% and others with smaller amounts as well. There is no threatening of lawsuits in the letters if I do not respond.

    Have yet to hear from crap 1 since I did not respond to the summons about a month ago.

    Maybe my credit report influenced the magic 8 ball.

    #2
    Originally posted by jacko View Post
    My major creditors citi and chase via lawfirm CA's want to settle at 50% and others with smaller amounts as well. There is no threatening of lawsuits in the letters if I do not respond.

    Have yet to hear from crap 1 since I did not respond to the summons about a month ago.

    Maybe my credit report influenced the magic 8 ball.
    The problem with these kind of settlements is that they want lump sum payments of one or over a few months to settle the debt. Any forgiven debt after a settlement is sent by 1099 as taxable income to the IRS.
    Chapter 13 filer since Feb. 2018 under a 60 months payment plan
    Please think positive and do not give up!

    Comment


      #3
      'Jacko' if you settle with one, you will quash any plans for bk in the near future. It is a preferential payment. Only if you can afford it would I consider this. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment


        #4
        If you got a summons and you did not respond to it, or appear in court, the creditor won a default judgment against you. If the deadline to respond or appear has NOT passed yet, you better be on your way pretty darn quick! Or file BK to toll it.

        Now, if have already filed BK, and the creditors are trying to get you to settle on the side, they are doing wrong by ignoring the Automatic Stay. And if you make any type of agreement with them outside of the BK, then you will get your case dismissed.
        Last edited by AngelinaCat; 10-12-2009, 06:48 AM. Reason: spelling
        "To go bravely forward is to invite a miracle."

        "Worry is the darkroom where negatives are formed."

        Comment


          #5
          Originally posted by AngelinaCatHub View Post
          'Jacko' if you settle with one, you will quash any plans for bk in the near future. It is a preferential payment. Only if you can afford it would I consider this. 'Hub
          With all due respect, I don't believe this is true. A preferential payment to a non-insider (non family member) would not "quash" plans (if the word "quash" is meant to mean "stop") for a debtor to file BK. In fact, preferential payments made to a creditor that isn't an insider will not affect the debtor at all. The trustee may recover the payment from the creditor to distribute to all creditors, but the debtor would not be affected by this action.

          see:




          Also...
          Quash

          Comment


            #6
            Originally posted by 2Bshinyandnew View Post
            With all due respect, I don't believe this is true. A preferential payment to a non-insider (non family member) would not "quash" plans (if the word "quash" is meant to mean "stop") for a debtor to file BK. In fact, preferential payments made to a creditor that isn't an insider will not affect the debtor at all. The trustee may recover the payment from the creditor to distribute to all creditors, but the debtor would not be affected by this action.

            see:




            Also...
            Quash
            It was my wording (syntax) that may have been confusing. An insider payment is also a preferential payment, but a preferential payment is "cherry picking" one creditor over another. They must all be paid evenly (as in minimum payments) but if one is paid and the others are not, you are correct it is preferential and the Trustee could recover it. We were warned very sternly not to make a chosen payment to settle before our bk was filed. 'Hub
            If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

            Comment


              #7
              If you owe 2 creditors $1 million each, and pay one of them off in full, then file BK, the other creditor is "entitled" to a clawback (through the trustee) of half of the 1 million that you paid the other guys. In that way each would have been treated fairly. Equally badly. Think Madoff here.
              filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

              Comment


                #8
                Originally posted by AngelinaCatHub View Post
                It was my wording (syntax) that may have been confusing. An insider payment is also a preferential payment, but a preferential payment is "cherry picking" one creditor over another. They must all be paid evenly (as in minimum payments) but if one is paid and the others are not, you are correct it is preferential and the Trustee could recover it. We were warned very sternly not to make a chosen payment to settle before our bk was filed. 'Hub
                I understand what you say above, however, it a debtor, like the OP pays citibank $3k and files BK a month later, that will not "quash" his filing BK, or in anyway diminish his ability/access to petition for a discharge under the bankruptcy laws as you stated in your first post.

                Perhaps the stern warning from your lawyer was not to make a chosen payment to a family member/insider since there is no way a preferential payment to citibank would affect you, the debtor.

                Comment


                  #9
                  Exactly. The settlement letters were pretty hilarious. Citi wanted to settle a $11,000 balance for $6000 and Chase for 11,000 from $22,000 with inflated fees in either a lump sum or three payments with higher payments.
                  Like I have that kind of cash laying around. If I did, I would do what BB has stated, convert the cash into exempt assets such as dental work I need at some point and a new PC.

                  Currently collection proof and will stay that way until I file.

                  Originally posted by ForumReader View Post
                  The problem with these kind of settlements is that they want lump sum payments of one or over a few months to settle the debt. Any forgiven debt after a settlement is sent by 1099 as taxable income to the IRS.

                  Comment


                    #10
                    I think crap one was fishing and lost. If they did their Due Dil. like my other creditors must have done, there is no point wasting their time and money trying to collect. My credit report screams BK.

                    Originally posted by AngelinaCat View Post
                    If you got a summons and you did not respond to it, or appear in court, the creditor won a default judgment against you. If the deadline to respond or appear has NOT passed yet, you better be on your way pretty darn quick! Or file BK to toll it.

                    Now, if have already filed BK, and the creditors are trying to get you to settle on the side, they are doing wrong by ignoring the Automatic Stay. And if you make any type of agreement with them outside of the BK, then you will get your case dismissed.

                    Comment


                      #11
                      American Express (whom I owe $16,000 to and have not paid since April 09) sent my account to yet another collections agency and today I received a call from them saying they will settle for $3800. The 1st agency they sent it to was a "Collection Attorney" threatening to sue, I said "go ahead", and sent them a Cease & Desist letter and have not heard from them since.

                      Bank of America Mastercard (whom I also have not paid since Mar 09 and owe $28,000 to) also called offering me a settlement of $6500, paid over 4 mths.

                      You can do much better than 50%, believe me.

                      I will never, ever, ever I swear to my personal God, take or possess a credit card again. Have not used one since Xmas 08 and will never use one again.
                      Stopped paying c. cards February 2009
                      Retained attorney 11/5/09 - $100k in C.Card debt - $120000 per year income - Filed Feb 2010 - 341 Apr 2010 - No Asset Case/Report of No Dist Apr 2010 - Discharged June 2010
                      Case went without a hitch!
                      I HELD MY HEAD HIGH IN THAT COURTROOM AND NOW I AM MOVING ON!

                      Comment


                        #12
                        Chase offered me 15% as settlement. THen I can pay taxes on the forgiven $20,000?? No thanks. I think I will do a BK instead, and be done with all of you.

                        Comment

                        bottom Ad Widget

                        Collapse
                        Working...
                        X