Been 3 yrs and I'm still only getting 50% offers

[Tangelwood]

At what point can I start to expect offers of 20%. I could probably pay off all 70,000 of my debt if I could get these at 20% otherwise it'd be a waste of money imo

[bcohen]

The problem with trying to settle your debts--unless they are all with the same creditor--is that as you begin to settle some of the debts for a low percentage, your other creditors will start to think that your circumstances have improved and you have money, so they'll sue. So for example, if you have 5 debts--all with different creditors or JDB's--and you settle the first one for 20% or whatever, and maybe settle the second one for 20% as well, then I can guarantee you that one (or more) of your other creditors will sense an opportunity to bring suit and garnish you for the full amount plus collection fees, attorney fees, etc.

So in the end, you will have wasted valuable money on settling that could have been spent on exempt assets and filing for BK. Furthermore, any taxes owed as a result of settling debts ARE NOT DISCHARGEABLE IN BANKRUPTCY even though you could have discharged the debt itself without any problem.

[DYLAN150]

It's been 15 months for me and I have never really got any kind of good offer like you read on these boards. 30% off was the best. 10 of my creditors never even made an offer.

[GoingDown]

The problem with trying to settle your debts--unless they are all with the same creditor--is that as you begin to settle some of the debts for a low percentage, your other creditors will start to think that your circumstances have improved and you have money, so they'll sue. So for example, if you have 5 debts--all with different creditors or JDB's--and you settle the first one for 20% or whatever, and maybe settle the second one for 20% as well, then I can guarantee you that one (or more) of your other creditors will sense an opportunity to bring suit and garnish you for the full amount plus collection fees, attorney fees, etc.

So in the end, you will have wasted valuable money on settling that could have been spent on exempt assets and filing for BK. Furthermore, any taxes owed as a result of settling debts ARE NOT DISCHARGEABLE IN BANKRUPTCY even though you could have discharged the debt itself without any problem.

+1 I agree.

You're better off filing bankruptcy than settling. Or just do nothing and wait them out. If they haven't filed a lawsuit in 3 years of non-payment, chances are good that they won't do anything, and the debt will die the death of the statute of limitations for your state.

[GoingDown]

It's been 15 months for me and I have never really got any kind of good offer like you read on these boards. 30% off was the best. 10 of my creditors never even made an offer.

What I have found is that they typically won't initiate a decent settlement offer themselves. They are going to send out a letter offering a huge discount as the first round of negotiations starts. That only comes after you make an offer to settle and they make a counter offer, etc., and it usually only happens with junk debt buyers, and especially with second string junk debt buyers who only paid a very small amount for the debt. That way, even with a steeply discounted settlement offer, they still make money off of it.

[keepsmiling]

I think it depends on what they know about you.
We have very few assets and have received offers of 13%.
If you have a few creditors, settlement may work out. But if there are a half dozen or more, probably fuggedaboudit.

[Tangelwood]

Wow! Thank u one and all. I have roughly 5 I stopped paying on in August 2009. Since that time AMX tried to sue a year and a half ago and I immediately went down to the county office and objected. Now a year and a half latter they just recently send a very large envelope containing all of my past charges I made with AMX along with a simple letter asking that I know call them and make some sort of commitment which prompted me to start this thread.

I feel strongly about no filing BK at my age (44) but I did have 20k and thought maybe I could try to right this wrong by paying everyone 20% but I clearly see know that would only help to do nothing but antagonize my other remaining creditors so based on my fellow board members this is what I propose and perhaps let me know if you agree.

I will attempt to wind down the 6yr statue of limitations by appearing and answering any summons and if any eventually make it in front of a judge I will then simply try to set up some sort of payment schedule with the plaintiffs lawyer. Sound reasonable? Any known pitfalls to this approach?

[LadyInTheRed]

My understanding is that while you may be able to settle some debt for 20%, the average you should expect is more like 40%.

Why do you think that you shouldn't file BK at 44? You are still young. I should know since I am only a year younger.

The expiration of the SOL does not prevent creditors from suing you in which case you have to answer the complaint and assert the SOL as an affirmative defense to avoid a judgement. JDBs who buy your debt may very well report on your credit report that you are delinquent and/or in collections after the 7 years past your original deliquency when those reports should be removed. You will have to keep a close eye on your credit report and object to those kinds of entries. These debts could haunt you for the rest of your life, which could be another 44 years.

This may not bother you, but I just want to make sure your decision to wait out the SOL instead of filing BK is a fully informed one.

[catleg]

You would be better off filing BK and getting the fresh start.
Sounds like you've gotten some misinformation somewhere about bankruptcy.
It really is the best way to go.

[bcohen]

My understanding is that while you may be able to settle some debt for 20%, the average you should expect is more like 40%.

Why do you think that you shouldn't file BK at 44? You are still young. I should know since I am only a year younger.

The expiration of the SOL does not prevent creditors from suing you in which case you have to answer the complaint and assert the SOL as an affirmative defense to avoid a judgement. JDBs who buy your debt may very well report on your credit report that you are delinquent and/or in collections after the 7 years past your original deliquency when those reports should be removed. You will have to keep a close eye on your credit report and object to those kinds of entries. These debts could haunt you for the rest of your life, which could be another 44 years.

This may not bother you, but I just want to make sure your decision to wait out the SOL instead of filing BK is a fully informed one.

The expiration of the SOL may not stop JDB's from suing, just as laws against theft and murder don't stop people from stealing and killing, however it is a violation of the FDCPA to sue on a debt that is past SOL. You are correct that in the event of such a lawsuit, it is necessary for the defendant to file an answer with the court and raise the affirmative defense of SOL; failure to file a timely answer will result in a default judgment and garnishment, etc.

I disagree that the possiblilty of illegal reaging of debts on the credit report should play into the decision to file for BK or not. It should be fairly simple to dispute these entries off the credit report, and if necessary to sue the offending CA/JDB for violating the FDCPA, and there are attorneys who will take these cases on contingency. Also, it will help if you have saved the documentation, such as printouts of past credit reports, billing statements from the OC showing the month before default, the month of default, and each month thereafter until charge-off. I have kept EVERYTHING, so if I need to sue a CA or JDB in the future over illegal reporting, I will have all my ducks in a row.

I have decided to wait out the SOL rather than file for the simple reason that I don't have any assets to protect, and since I have chronic health problems, I might need to flush some huge medical bills down the BK toilet anyways. If it wasn't for our state's legislature catering to the banking industry and extending the SOL last August, my debts would now be past the (old) 3-year SOL. Now, I have to wait another 3 years to be truly "home free". Knocking on wood that I don't get sued, though all of my debts are now with 2nd or 3rd JDB's, so they probably don't have the documentation needed to prevail if I answer the suit. And of course, the BK option is always available if needed.

[Tangelwood]

The expiration of the SOL may not stop JDB's from suing, just as laws against theft and murder don't stop people from stealing and killing, however it is a violation of the FDCPA to sue on a debt that is past SOL. You are correct that in the event of such a lawsuit, it is necessary for the defendant to file an answer with the court and raise the affirmative defense of SOL; failure to file a timely answer will result in a default judgment and garnishment, etc.

I disagree that the possiblilty of illegal reaging of debts on the credit report should play into the decision to file for BK or not. It should be fairly simple to dispute these entries off the credit report, and if necessary to sue the offending CA/JDB for violating the FDCPA, and there are attorneys who will take these cases on contingency. Also, it will help if you have saved the documentation, such as printouts of past credit reports, billing statements from the OC showing the month before default, the month of default, and each month thereafter until charge-off. I have kept EVERYTHING, so if I need to sue a CA or JDB in the future over illegal reporting, I will have all my ducks in a row.

I have decided to wait out the SOL rather than file for the simple reason that I don't have any assets to protect, and since I have chronic health problems, I might need to flush some huge medical bills down the BK toilet anyways. If it wasn't for our state's legislature catering to the banking industry and extending the SOL last August, my debts would now be past the (old) 3-year SOL. Now, I have to wait another 3 years to be truly "home free". Knocking on wood that I don't get sued, though all of my debts are now with 2nd or 3rd JDB's, so they probably don't have the documentation needed to prevail if I answer the suit. And of course, the BK option is always available if needed.

I fully agree. I too don't have any assets and would prefer to wait it out another 3 years. Even if one or two creditors are successful at taking it one step shy of garnishment I can always cave in and set up a payment schedule. I'm just not comfortable with the fact that at 44 a bankruptcy my last till I die as well.

[LadyInTheRed]

I think the decision of whether to file BK in this situation is a matter of personal tolerance for the risk that old debts can pop up at any time and cause a lot more trouble than if they were discharged in BK. One should fully understand the pros and cons before making the decision.

[ksgirl38]

I think it's a matter of math. I don't know your income (and don't want to know), but if your debt is more than half of your income then you'd probably be better off filing bankruptcy. Just saying.

[bcohen]

I fully agree. I too don't have any assets and would prefer to wait it out another 3 years. Even if one or two creditors are successful at taking it one step shy of garnishment I can always cave in and set up a payment schedule. I'm just not comfortable with the fact that at 44 a bankruptcy my last till I die as well.

If bankruptcy is appropriate, based on your income, expected future income, expected inheritances, etc, then PLEASE don't refuse to file simply because it could stay on your credit report as long as you're alive! This is not the Dark Ages, and people nowadays live much longer than 54, so I can almost guarantee you that this will be off your credit reports LONG before you die!

[Tangelwood]

If bankruptcy is appropriate, based on your income, expected future income, expected inheritances, etc, then PLEASE don't refuse to file simply because it could stay on your credit report as long as you're alive! This is not the Dark Ages, and people nowadays live much longer than 54, so I can almost guarantee you that this will be off your credit reports LONG before you die!

Sorry , guess losing 2 wives to death by the time I was 43 kinda keeps me in the morbid zone