Settling Debt

[jenny12483]

I had loan in 2003 that I have not been able to pay because I was injured and unable to work and then jobs that I would take would not work out. I have tried settling with the company but they are not willing to work with a payment that is feasable. I have a family member that is willing to help me out but they can not pay the full the amount. What is the general amount creditors are willing to settle for? Does the settlement get determined by how much money was borrowed or by how much is currently owed because of their ridiculous interest rate?

[jwmc1]

who is the creditor?

[jenny12483]

the orginal creditor was Household Finance but it is now with

[jenny12483]

Sorry they have hired McNearney & Associates.

[jwmc1]

Sorry they have hired McNearney & Associates.

Is this a law firm or a CA? Also, did they sell the debt to this form or are they just collecting? What kind of loan was it? Was it one of those loans that show up as a check in the mail that you have to sign and then it becomes an unsecured term loan?

[jenny12483]

Do you think they would settle based off the judgement amount?

[jenny12483]

It was an unsecured loan. Household still owns the debt they have just hired the company to represent them.

[jwmc1]

OK, I found them...I assume you live in Kansas?

Do they already have a judgement? Are you working? We had a loan from HFC, they sued us and would not settle AT ALL. We ended up paying every dime back, they even hit my account once and took $600. Not sure about your situation...if you have a job they will garnish you. Do you have a lot of other debt? Should you be considering bk? I guess I just don't know enough about you situation.

[jenny12483]

They have a judgement from 5 years ago. I had a problem finding a job so some family members have helped me start a company which has not taken off the groung yet, but the company has equipment so BK can not be an option because they will take what little chance I have to make money would be gone.

[jenny12483]

I live in Missouri

[jwmc1]

wow...sounds like they are fishing to me...have they done anything to enforce the judgement? 5 years is a long time...

[jenny12483]

They are trying now. They have sent a summons to appear in court.

[jwmc1]

hmmm...I am not sure what to tell you. If it were me and I didn't have the cash, I would make them my best offer now and then when I got to court I would tell the judge that you don't have the money and that you have made an offer that is based on borrowing money from family members and that you feel the creditor is being unreasonable....however, if you have money or income...you will have a difficult time beating the OC in court. Best of luck to you.