should I contact cc companies to settle.

[flyinbroke]

How would I find out what the arbitration stance is in NJ?

Take a look at case law (you will find most courts side with the OC/CA regardless), get to know the FDCPA intimately (ditto for state collections laws) and start seeing what claims you can make against OCs and CAs. Study the agreement and get to know this well. The only accepted forums are AAA and JAMS. Get to know both sites so you know what you are getting into.

A caveat: if you have no claims against them and will definitely lose in court, you will lose in arbitration. Having claims filed against them seems to be the key in coming to a mutually satisfying arrangement using this method.

[GoingDown]

If your debt is consolidated into 4,5,6 creditors and you have access to funds then why not settle. Try to pay 25% or less of the balance due and when they send a 1099. Use the IRS form 948 to relieve you of the tax implications.

@hub remember preferential treatment is only 90 days before filing so that hardly plays a part into the whole thing.

And screw filing chapter 13 for just unsecured creditors, I would rather use a hole punch on my eyelids and watch the movie Gigli for the rest of my life.

Good luck

Yes, I did use Form 948 and it does work. One of my original creditors was unable to collect anything from me and sat on the account for 3 years without any collection activity, so they sent me a 1099-C for the entire debt plus interest and fees. I sent in a copy of it along with the insolvency form and an insolvency worksheet, and I didn't owe any taxes on the forgiven debt.

[keepsmiling]

Take a look at case law (you will find most courts side with the OC/CA regardless), get to know the FDCPA intimately (ditto for state collections laws) and start seeing what claims you can make against OCs and CAs. Study the agreement and get to know this well. The only accepted forums are AAA and JAMS. Get to know both sites so you know what you are getting into.

A caveat: if you have no claims against them and will definitely lose in court, you will lose in arbitration. Having claims filed against them seems to be the key in coming to a mutually satisfying arrangement using this method.

Sorry if this is dumb, please idiot-proof it for me lol.... claims such as.....? Might Chase's change in terms = bad faith be a claim????