Need advise on working out payments with c/c

[maxwell18]

We have stopped paying our c/c about 3-4 months ago as we were living on them. Some have offered to reduced a little balance and put us on 60 months payments with no interest. They want financial statements with income and payments in order to submitte the package. Is this normal and should we give them our financial information? I don't want them knowing all our personal information, but would like to start to trying to pay back at reduced bal and payments. We decided not to do 13, don't qual for 7.
Thanks

[freeatlast98]

I was wondering the same thing because cc companies are now talking to me about great payment terms and reduced rates. Somehow they all make these offer however they want
debit card info. so they can take their payments directly. I'm a little scared to give them this info. Any thoughts out there?

[NewPage]

Do not give them your bank acct or debit card info!!

[freeatlast98]

Thanks for the reply. If I decide I want to take them up on there offers,should I just tell them I'll send the payment?
Something tells me they won't go for that.

[BrokeIn2010]

Thanks for the reply. If I decide I want to take them up on there offers,should I just tell them I'll send the payment?
Something tells me they won't go for that.

Well I can tell you my mother's experience: They said they'd only take "X" amount a month, then zapped her account dry with the first payment. Electronic payments when you're in collections is a risky deal.

And what they're likely NOT to tell you is that some settlements deals with end up with YOU having to pay income-taxes on the difference between the settled amount and the original amount. So yea, that "great deal" could bite you worse than you think.

[NewPage]

Thanks for the reply. If I decide I want to take them up on there offers,should I just tell them I'll send the payment?
Something tells me they won't go for that.

If you haven't already, check out the sticky in this forum about dealing with collection agencies. Some of the info is old, but you may find something helpful.

[azstac]

I am living proof that they will indeed screw you.

1. Citibank- set up payments and I wouldn't do it until they put it in writing and faxed it over. They did stand up to the agreement. I would send them a check threw bill pay only. I told them I wouldn't do it any other way and stood strong on telling them that I was considering bk but with that big helping hand I wouldn't have to. However if they couldn't do it with my terms of bill pay forget it. They ended up taking me up on it.

2. Chase bank settled for three payments of 500. I owed 5,000. They too did the bill pay and my terms.

But all good things came to an end when I got 2 1099 in Jan for the remaining balance due! I just about died. They crewed me in the end.

Azstac

[BrokeIn2010]

I am living proof that they will indeed screw you.

1. Citibank- set up payments and I wouldn't do it until they put it in writing and faxed it over. They did stand up to the agreement. I would send them a check threw bill pay only. I told them I wouldn't do it any other way and stood strong on telling them that I was considering bk but with that big helping hand I wouldn't have to. However if they couldn't do it with my terms of bill pay forget it. They ended up taking me up on it.

2. Chase bank settled for three payments of 500. I owed 5,000. They too did the bill pay and my terms.

But all good things came to an end when I got 2 1099 in Jan for the remaining balance due! I just about died. They crewed me in the end.

Azstac

That's why I've been leery on "great settlement offers", I know that you're trading a unsecured debt that can be discharged in a BK for a IRS bill that you're stuck with.

Ch. 13 isn't the best deal out there, but at least you don't get screwed from both ends on it, plus you don't get some measure of protection from the BK courts.

[freeatlast98]

That's why I've been leery on "great settlement offers", I know that you're trading a unsecured debt that can be discharged in a BK for a IRS bill that you're stuck with.

Ch. 13 isn't the best deal out there, but at least you don't get screwed from both ends on it, plus you don't get some measure of protection from the BK courts.

I'll be filing Chapter 7, do you think the outcome would be the same? I just live in constant fear that I'll get sued before I file. I haven't paid my cc for 3 to 4 months. I'm also trying to get a loan mod so that is why I hesitate to file yet. I also didn't pay May's mortgage because that is the only way BofA would even consider a modification. I still don't know if they'll offer a modification for me. Life is real confusing now.

[catleg]

That's why I've been leery on "great settlement offers", I know that you're trading a unsecured debt that can be discharged in a BK for a IRS bill that you're stuck with.

Ch. 13 isn't the best deal out there, but at least you don't get screwed from both ends on it, plus you don't get some measure of protection from the BK courts.

This is the bottom line...BK is a huge win over settlement + tax problems.

Chapter 13 isn't the greatest but it's better than all the alternatives.

[frogger]

They want financial statements with income and payments in order to submitte the package. Is this normal and should we give them our financial information?

Gee, I would like to have that too. It gives me complete information about where to find all of your assets.

This is not normal. Run Forrest, Run!

[flyinbroke]

Gee, I would like to have that too. It gives me complete information about where to find all of your assets.

This is not normal. Run Forrest, Run!

Second that. They are looking for an easy asset search. Strap on those running shoes, and run for the hills.

[BrokeIn2010]

That's why I've been leery on "great settlement offers", I know that you're trading a unsecured debt that can be discharged in a BK for a IRS bill that you're stuck with.

Ch. 13 isn't the best deal out there, but at least you don't get screwed from both ends on it, plus you don't get some measure of protection from the BK courts.

Meant to say "do get some measure of protection from the BK courts. :lol:

Second that. They are looking for an easy asset search. Strap on those running shoes, and run for the hills.

Yeppers. Send in those assets forms and you've done the paralegal's work for them when they go after you. Remember, they're not really interested in working with you, fine they'll settle if they have too but they'll find a way to eff you on the way out the door. Why make it quicker and easier for them to sue your ass when they break the deal?

I've heard it all on these settlement offers when my folks started having their problems (everything from 5 cents on the dollar to offering to settle a 5,000 dollar debt for $150.) and everyone of them was a scam when the paperwork came in. Tax liability, processing/legals fees, attachment of property (I think that one was a Crap 1; they'd settle, assume the tax burden but they got a lien on the house to payback the difference in the event of sell in the next 10 years-- it as buried in the fine print) always some little poker up the ass. Thankfully they listened to me and got the family attorney to start working on a Ch. 7 for them.