I have 6 accounts to settle , I can only afford 15% on each.That's the only money I have available now.If I settle each account at 15% I will have paid $13,350 . Accounts are with chase, citi,boa,hsbc ,chase, and the last one is with a credit union.do you guys think it can be done ? How to go about it? should I write to each one of them informing them my intentions.I don't care about my credit reports that much for I am not intending of using credit at all for a long time .After 7 years my credit will be clean automatically anyway isn't it? My main concern is not to get sued.lien or judgment.I rather pay each one 15% and get it over with.Of course comes the tax 1099c issue after wards but I'll take it one step at a time.Bankruptcy is out of the question for me can't do that at this time but of course will be considered the last option.4 of the above accounts are charged off the remaining 2 are still open. most of them past 150 days .
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Well, if all you have has 15% to settle, then BK is in your future if you want to get out of this debt, that is fairly unrealistic number to settle ALL accounts.
Incidentally, why spend $13,000+ on settling instead of filing BK and only spending maybe, $2K on attorneys fees. Doesn't make sense to throw money down the drain settling, (especially if you don't care about your credit). Maybe you already addressed this in previous post, but why is BK not an option? -
thanks for answering my post, because I have home equity
I hear few forum members saying that many banks are settling for 15%, so I'll give it a shot why not, right?Last edited by ando; 11-29-2009, 08:15 PM.Comment
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No one has said that, in fact, I challenge you to do a search and find any evidence that "many banks" are settling for 15%. About the only bank that comes close is BofA and that is only if you owe them $50K or more. Most won't even do a settlement of less than 50% until the account has gone to charge off.many banks
The fact is (and it hasn't changed), "average" combined settlements are in the range of 40%.
What will likely happen (if it hasn't already), is that "one" of the creditors will pop up and sue you while you are "waiting" for this mystical 15% settlement, and then your hand will be forced. You should probably think about a plan B. My heart hopes you are able to pull it off, but my mind and experience says its a long shot.Comment
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I don't think that you're going to pull it off. While you're trying to do it, make sure that you're looking for a lawyer too.All information contained in this post is for informational and amusement purposes only.
Bankruptcy is a process, not an event.......Comment
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a member name danglin wrote :
We just got an offer from Amex today...$2700 on a $27,500 balance.
another from NJguy:
If you stop paying your cards for 6 months you will get settlement offers for 30-60%. You need to evaluate if it makes sense for you.
FLtoo wrote:
Also, the almighty Chase and Cap1 most certainly do settle to the tune of 15-25% of loan balance that I know of, possibly even less in the next year if this economy does not perk up.Comment
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Here is a potential problem by contacting them and asking for a settlement. As soon as you tell them you want to settle they are going to jack your interest rate up on your cards if they have not already done that. Then they will cut off access to your credit. Many of these people are offered these reductions because they told the CC they are filing for bankruptcy and after two months of not filing and waiting until there paperwork reached the creditors they offered these settlements.
However, you have to make every attempt to satisfy yourself. So, don't rule out the long shot if you think its plausible.. like an earlier person said. Make sure you have a BK attorney ready to take your case as the next plan.Comment
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one more thought. You might cause yourself a bigger headache if you pay some of these creditors and then end up being forced to file bankruptcy. You would end up getting nailed for preferential payment or have to wait awhile to file.Comment
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my credit has been shot for quiet some time, I am living on cash bases since I stopped paying and I intend to do so in the future . I live on a small pension from a civil service retirement. My only assets is some equity on home I live in .That is the only thing they can get from me.Actually that is the only thing I own.Lawyers I contacted in the past want to push for 13 which I dread because payments they set was too high.7 is out of reach because of equity ,but when it comes to it,I may let the chips fall where they might be.Originally posted by Mi Bankruptcy View Post
Right now my only option is the 15% or 20% solution, maybe ,and maybe up to 25% if they want to settle now.Comment
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Don't forget about those pesky 1099 forms that you will undoubtedly receive if you do manage to get the settlements. "Seek the force, Luke" The force of a good bankruptcy attorney.Comment
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Aside from the above issues is this:
As soon as you settle with 1-2 creditors, it hits your credit report. That informs ALL your creditors that you are willing to play ball. There is a good chance that some will see this as a chance to "nail you" with a higher percentage. Instead of settling at 15%, the last couple creditors may demand 75%, knowing full well that they are the last obstacle in your life to getting your debts settled.
It makes sense, from their standpoint, and puts you under even greater pressure. And probably increases the chance for a suit and judgment, since they will see you are obtaining funds to settle from somewhere.
Just random thoughts on your effort.
Good luck!11-20-09-- Filed Chapter 7
12-23-09-- 341 Meeting-Early Christmas Gift?
3-9-10--DischargedComment
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