Suggestions for settling today?

[holycowe]

I'll try to stretch it out 'til august to file bk.
My wife has 3 debts with the same CA and they are bringer her to court. In order to avoid the judgments, hassles later, I'll call them and try to settle down those 3 accounts for now 'til we file. Thought about answer the summons but it cost too much here ($230 each answer) and inventually, they will win with judgments anyway.

-Will they accept $50 per month for each account? (not enough $$ now, will have to cut back cable bill for this....bla bla bla...'til she got another job)

-If they ask for more $$$ each month, should I tell them we can't afford it and have to file BK??? Do they affaik when we mention bk to them?
Thank you

[jwmc1]

I don't know...if you are going to file anyway, I would just tell them you are going to file. That will string them along for a little while. You can always go another two months or, then they will start to bother you again. At that point you can retain an attorney and then wait another month or to and just refer them to he attorney. But I have two questions: are you filing 7 or 13; and secondly, why are you waiting until August?

[holycowe]

Will fill 13 because we wanna keep the small business (no house, forclosed 2 years ago)
Wait 'til august so 6 months look back will be fine on income, paperworks....

[holycowe]

Oh, I tried to call them many times at end of the day and they said they are so busy handling other customers, high call volume....suggest me to call back tomorrow (maybe they are too lazy by the end of the day?)
By the way, they are bigshot CA (rsieh)

[frogger]

If you want to "settle" today, then you need to be prepared to pay them in full, or at least a substantial payment. After they have spent the money and time for the filing fees, it is doubtful that $50.00 per month is going to buy them off.

[disconapper]

I received several offers to settle, but ignored them, and the offers kept getting smaller and smaller (in my favor). I did not however settle, and all those debts will be included in my chapter 7 for the full amounts.

If you settle down, doesn't the company charge off the rest and then sent you a 1099 for the settled off debt, which in turn creates a tax issue? I thought I read that somewhere.

[DYLAN150]

HolyCowe: Just wondering when was the last time you made a payment on these accounts? Tell them your filing in Aug.

[keepsmiling]

I received several offers to settle, but ignored them, and the offers kept getting smaller and smaller (in my favor). I did not however settle, and all those debts will be included in my chapter 7 for the full amounts.

If you settle down, doesn't the company charge off the rest and then sent you a 1099 for the settled off debt, which in turn creates a tax issue? I thought I read that somewhere.

YES, but yoiu are liable for taxes only if your total assets (including retirement plans) exceed your liabilities, and to the extent that they do. I am not settling because of my 401K. Thankfully I found this forum before I looted it to pay the cc's!

[disconapper]

Thanks for the information keepsmiling, I thought I had read that somewhere.

Lucky for me (or not so lucky), I've got nothing, zip, ziltch, nada. Only debt, not even a house, just a car that I'm going to surrender in the bankruptcy. LOL.

I didn't settle down because I didn't have the money. Glad I didn't, hate dealing with tax issues, regardless if I have assets or not.

[holycowe]

She stopped paying about almost 2 years ago.
No. I dont wanna settle the whole thing as we dont have that money and we'll file in aug anyway. I just want the payment arrangement hopefully they can stop the process and judgments

[jwmc1]

If you are filing, do not settle, it makes no sense. You can't get rid of taxes in a bankruptcy.