debt settlement letter , thought on it

[danohio2831]

Date

John doe
123 bankruptcy bound
Lorain, Ohio 44053

Credit card company and address

In re: john doe
Acct #


Dear Collection Manager:

1. I am unhappy to report to you I have been permanently laid off.
2. I have been struggling with major depression and a bipolar disorder over my lifetime, which caused a extreme spending spree over a 2 year period. And I also have a 56,000.00 second mortgage over the last one.
3. I am getting my certificate to be able to declare chapter 7 bankruptcy
4. Getting a attorney to file chapter 7

I will also tell you I have been searching the internet for 40 hours a week for almost a month, and I know my rights, and yours. So let me start by saying I will keep in contact with you over my account. You will be able to reach me at and ask for dan. If you abuse this by calling work, family, friends, you will get a letter ceasing all communication with me. I have read Fair Debt Collection Practices Act and will use them if I am forced to. I also do not need to hear things like you did this, you are responsible, ill sue, ect. All I want to hear is we can work it out, if this cant be done, do not bother calling period.


I am looking for another alternative before I file bankruptcy. The option I have decided to try is debt settlement. But the problem is I have a lot of creditors. So if this will work, I need every ones cooperation. I might be able to avoid bankruptcy if I can pay 30% of the original balance on my credit cards. I know this is not a lot, but my family is trying to help me so that I do not have to file bankruptcy. If I have to file, I understand you will get nothing.
My plan is to set up a savings account and pay creditors a set amount monthly. If I get enough saved up, I will start paying off a creditor at a time. I would like to set up a 36 month payment plan, on a set amount and stop any late fees or interest related to this account, until the account is paid as agreed. If you are willing to work with me and do a debt settlement please send a letter stating what the offer would be. Bare in mind that I am sitting on 130,000 dollars in credit card debt , and I need to be able to work out a payment plan with all my creditors to be able to make this work so I do not have to file for chapter 7 bankruptcy.

[danohio2831]

i know

i know i might not get them all to agree, but i want to try before i file chapter 7.

what i am asking, can anyone see anything that might help me, or hurt me in the letter

i also have been making my debt settlement letters.

thanks for a awesome forum and the help

[FilingOnMyOwn]

You can try. You need to make it appear 110% professional, unlike the rough draft you posted. Let us know how it goes. Keep in mind, if any of them accept a 30% settlement, they will expect it in a cash lump sum payment, and may still report the remainder of the uncollected debt as a charge off on your credit report.

[Jenny]

Date

John doe
123 bankruptcy bound
Lorain, Ohio 44053

Credit card company and address

In re: john doe
Acct #


Dear Collection Manager:

1. I am unhappy to report to you I have been permanently laid off.
2. I have been struggling with major depression and a bipolar disorder over my lifetime, which caused a extreme spending spree over a 2 year period. And I also have a 56,000.00 second mortgage over the last one.
3. I am getting my certificate to be able to declare chapter 7 bankruptcy
4. Getting a attorney to file chapter 7

I will also tell you I have been searching the internet for 40 hours a week for almost a month, and I know my rights, and yours. So let me start by saying I will keep in contact with you over my account. You will be able to reach me at <number removed> and ask for dan. If you abuse this by calling work, family, friends, you will get a letter ceasing all communication with me. I have read Fair Debt Collection Practices Act and will use them if I am forced to. I also do not need to hear things like you did this, you are responsible, ill sue, ect. All I want to hear is we can work it out, if this cant be done, do not bother calling period.

Leave this part out. It sounds really unprofessional.

I am looking for another alternative before I file bankruptcy. The option I have decided to try is debt settlement. But the problem is I have a lot of creditors. So if this will work, I need every ones cooperation. I might be able to avoid bankruptcy if I can pay 30% of the original balance on my credit cards. I know this is not a lot, but my family is trying to help me so that I do not have to file bankruptcy. If I have to file, I understand you will get nothing.
My plan is to set up a savings account and pay creditors a set amount monthly. If I get enough saved up, I will start paying off a creditor at a time. I would like to set up a 36 month payment plan, on a set amount and stop any late fees or interest related to this account, until the account is paid as agreed. If you are willing to work with me and do a debt settlement please send a letter stating what the offer would be. Bare in mind that I am sitting on 130,000 dollars in credit card debt , and I need to be able to work out a payment plan with all my creditors to be able to make this work so I do not have to file for chapter 7 bankruptcy.

The word you mean is "bear".

[SinkingFast]

I personally wouldn't tell them about the illness issues. Instead just say, "My employment position has been permanently terminated. I have also been dealing with several, serious health issues that are unresolved and very costly."

You don't have to tell them your level of debt or the fact you have a 2nd mortgage of $56K. One pull of your Credit Report will show all that.

Think about this letter in the long term. What it would tell someone that reads this one piece of paper 10 years from now with no other info about the situation. Your words in this letter are a reflection of you. Not the supporting documentation.

Be nice, polite, and straight to the point. Don't offer any more personal info than absolutely necessary. Creditors can gather a lot about you on their own.

"Due to permanent termination from my employment and serious ongoing health issues, I am unable to meet my financial obligations to all my Creditors. I am seeking alternative to filing Bankruptcy. I hope to establish a settlement plan with you in which I propose to pay an agreed settlement amount in 36 montly installments."

Short, sweet, and to the point.

[aa06a47]

I personally wouldn't tell them about the illness issues. Instead just say, "My employment position has been permanently terminated. I have also been dealing with several, serious health issues that are unresolved and very costly."

You don't have to tell them your level of debt or the fact you have a 2nd mortgage of $56K. One pull of your Credit Report will show all that.

Think about this letter in the long term. What it would tell someone that reads this one piece of paper 10 years from now with no other info about the situation. Your words in this letter are a reflection of you. Not the supporting documentation.

Be nice, polite, and straight to the point. Don't offer any more personal info than absolutely necessary. Creditors can gather a lot about you on their own.

"Due to permanent termination from my employment and serious ongoing health issues, I am unable to meet my financial obligations to all my Creditors. I am seeking alternative to filing Bankruptcy. I hope to establish a settlement plan with you in which I propose to pay an agreed settlement amount in 36 montly installments."

Short, sweet, and to the point.

Be careful on debt settlement. My last attorney asked me during the free consultation if I had agreed to any debt settlement plans. When I said no, she said good, you are bound in bk by those agreements and they cannot be discharged.

While I didn't feel that was an option for me anyway, I really didn't pursue asking her the why question. I guess in a nut shell, I wouldn't offer them anything. In my opinion, if you are telling them you can pay them 30% back in 3 years, your telling them you can pay 50% back in a 5 year chapter 13. I would not put that in writing of any type, especially if your going for a chapter 7.

[danohio2831]

thank you so much!!!!!!!!!!! that is very interesting....i never thought of it like that



wow, i love this forum

[SinkingFast]

Be careful on debt settlement. My last attorney asked me during the free consultation if I had agreed to any debt settlement plans. When I said no, she said good, you are bound in bk by those agreements and they cannot be discharged.

While I didn't feel that was an option for me anyway, I really didn't pursue asking her the why question. I guess in a nut shell, I wouldn't offer them anything. In my opinion, if you are telling them you can pay them 30% back in 3 years, your telling them you can pay 50% back in a 5 year chapter 13. I would not put that in writing of any type, especially if your going for a chapter 7.

I agree with Aa!

I'd rather file BK and be done with all the debt than do settlement agreements with each and every Creditor.

You give them an inch and they're gonna try and take a mile. So why bother. Your credit history will be screwed either way.

[keepmine]

Two other reasons not to send that letter.
1. The FDCPA is binding only on 3rd party collectors. The orginal creditor is exempt.
2. Never tell anyone that you don't want to file bk but, you have access to money. Guaranteed, somebody will put you to the test and sue you and try and gather the lions share of any settlement.