Offer from Citi

[keepsmiling]

Did you make Citi your offer?

[lovemybugs10]

I was just coming to post.

I am waiting on a fax (I spoke to them a few minutes ago) to get it in writing before I jump for joy. They accepted 5200 in 6 payments of 874 (and change)

[keepsmiling]

Congrats and glad you are happy!
I keep hoping to hear of 10% settlements... that's about the best I can do.

[lovemybugs10]

I think the key is that they have no clue of our financial status. Last I talked to them we had no income.

If I couldn't afford that, I probably could have pushed them lower....but I am a chicken. I don't let them know I'm scared, but man I sweat each time I talk to them. Thankfully when I'm nervous my voice goes low instead of high so I sound serious, lol

[treehugger1]

Lovemybugs, you have posted your settlement issues here for a long time. This is great. I have to wonder if you think you are "saving" your credit score. Other than that and some strange assumption you have a moral obligation to your CONTRACTUAL unsecured debt, how much money have you thrown away?

[lovemybugs10]

Nope, credit is out the door. I have no intention of using credit again so it's not something I even think about re-building. DMI is high and I would pay back 100% in a bk. What I'm settling for and the amount I will have to pay income on will be less than what I would pay in bk. The numbers are in my favor to settle. I have nothing against bk and if the numbers were more in favor of cash in my pocket that way I would do it. But it simply isn't.

Why do you assume settling is wasting money? Where I am now, even if I had to file, 10k of my debt wouldn't be included ...and it still works out to more money in my pocket.

That is the bottom line. Whatever keeps the most money in my pocket.

Eta: Your long time must be different than mine, because I haven't even been around a year yet.

[treehugger1]

Be careful. It is my understanding that the tax process for these 1099's must be considered during the year the corporation files the 1099, not necessarily when you settled. What may be true during the year you default, may not be true the next year.

[lovemybugs10]

They would have to file it the year it is paid in full, correct?

I am expecting to pay taxes on the write off portion, so I don't know what would change to make that worse?