settlement offer

[Mango]

i am in deep with CC debt..i just received from Amex an offer if i pay 50 dollars a month for 20 months, they will call it even..also an ofer from b of a for a settlemet of 200. on an 800. debt (this one was from a coolection agency) should i do these? I still have others outstanding, and dont really have an extra 50. a month but i can probaly do it...i havent paid a CC bill in three years..

[DYLAN150]

You say you have not paid a Credit Card bill in 3 years? That's why your being offered these settlements, The companies know that they most likely will never receive a cent. I have not paid them in over one year and owe B of A close to 30K. No offers of settlement at all. Please let us know what you are going to do, but why paid them now?

[AngelinaCat]

Have you filed BK yet? If you have, and you accept this settlement offer outside of your bankruptcy, you run the risk of having your case thrown out. You cannot pay one creditor, no matter how small an amount, and not your others. That is called a 'Preferential Payment'.

[DYLAN150]

Also, any company you settle with, there may be a tax issue. (1099) Also check out Florida Statute of Limitations on Credit Card Debt. Have you looked into filing for Bankruptcy?

[malf1204]

The statute of limitations will restart if you make even .01 payment so I would not do it.

[bcohen]

I second malf1204's advice. It is a ploy to reset the SOL. AMEX is one of the last companies who would be willing to forgive any debt. Most likely, after you make all the payments, you will find yourself sued for the remaining balance which you "thought" was going to be forgiven. Besides, even assuming that the offer is legitimate, once you start paying one creditor, the others will start coming after you full-force. So even if you can scrape together $50 a month to pay AMEX, what are you going to do when your other creditors file lawsuits, or demand similar payment arrangements?

[AngelinaCat]

I 'third' malf's advice, and am abashed that I did not think of re-setting the SOL when making my original reply. Stay away from it. Good lick!

[malf1204]

The statute of limitations on credit card debt in FL is 4 years from the last payment but.....
If you have credit card debt that is in the four-year period of the statute of limitations (for example, you have one year left), and you decide to make payments for a certain period of time, then stop making payments after a certain period of time, the statute of limitations starts over again. For example, if you stopped paying for three years and 11 months (leaving one month left for the credit card company to collect legally), then pay for three months, then stop paying again, the statute of limitations starts at the four-year period again. The credit card company can legally attempt collections for four more years.

Read more: What Is the Statute of Limitations on Credit Card Debt in Florida? | eHow.com http://www.ehow.com/about_6130195_st...#ixzz1n4XN84Zb

So again BAD IDEA

[Mango]

Thanks for the comments..Yes, i was thinking I probably shouldnt do it..for alot of the reasons stated. Plus i have at least 6 more cards i cant pay, so whats the point? Maybe if these were the only ones i had...

[shark66]

Thanks for the comments..Yes, i was thinking I probably shouldnt do it..for alot of the reasons stated. Plus i have at least 6 more cards i cant pay, so whats the point? Maybe if these were the only ones i had...

Let's not forget that if you were to settle with "some", the "others" would not take to that kindly and would most likely sue you in a NY minute...

My experience has been that as long as you're not paying anyone, the offers will keep on coming and getting better along the way.

Will there be a JDB that decides to take you to court? Maybe. But that "maybe" is not worth re-setting the SOL on debt that is close to it...just for that reason alone, I'd tell all of them to go pound sand...

My $0.02 only...

Good luck to us all.

[Mango]

I had that same thought, Shark.. I just checked my reccords and i stopped most of my CC payments in dec. 08/jan 09...another in july 09 and another about a yr ago..most of them have less than a yr before the 4 yr SOL ends so i am just hoping to wait them out til then..

[AngelinaCatHub]

Why even consider paying one or another if you are going to bk? Paying a preferential payment to one and not all does not fly well in a bk situation. Not only that, the tax implications and the SOL included all makes this a risky thing. I foubt you would be sued for so little and after you pass the SOL they can't sue you. Don't even talk to them as you are always recorded. One admission and SOL could reset. 'Hub

[mountanddo]

Don't even talk to them as you are always recorded. One admission and SOL could reset. 'Hub

I thought the SOL only reset if you made a payment.

[AngelinaCat]

I thought the SOL only reset if you made a payment.

The CAs typically record your phone conversations with them for "quality control and training purposes" and if they can trap you into making some kind of affirmative statement, they can manipulate that recording into where it appears that you acknowledge that the debt is yours, and that can reset the clock.