Can I try to settle while disputing the debt as legally valid?

[slvnomore]

Can I try to settle while still disputing the debt as legally valid, or does this admit the debt?

BACKSTORY:

44K in cc debt, chase and FNB, chase offered $30% and FNB 40%
didn't have it.

Was about send in counter offer to OC, but wondered if it would disrupt my option to dispute and fight later if I have to go that route. In other words does it validate the debt if I make a counter offer?

do I preserve the option to dispute by putting in language like this that says i still dispute it. but then make and offer? : LIKE THIS:


I appreciate your settlement offer of $9000 over 90 days for settlement in full. However, if I could pay anything close to that much, I would not be in this position.

Still, I would rather we could come to some realistic agreement rather than having to pay a bankruptcy attorney for a Chapter 7 no asset case. Of course if we can’t come to an agreement and I am forced to do a Chapter 7 we both lose.

Please be advised this alleged debt and accounts are disputed in their entirety. However, in an effort to resolve this matter: Here is my settlement offer:

ETC. ETC.

would that still preserve my dispute options at the same time i tried to settle either with an OC or and collections agency?

thanks!

[slvnomore]

in other words, can you attempt to settle with the OC, for peach of mind while using language that is disputing the debt to preserve your right to dispute validation with a JDB or collection agency if it comes to that?

[justbroke]

It is hard to dispute a debt which you have been paying, agree to pay, or otherwise enter into some sort of agreement to pay (whether it is settlement or some other payment). Threatening bankruptcy means absolutely nothing to them. If you are 180+ days behind, then they have probably already charged it off as a bad debt. They would soon liquidate the bad debt by selling it to a third party (junk debt buyer). Once the JDB has it, the likelihood of a lowball settlement improves, but that could take time.

With the debt being so large (> $4,000), it is highly likely the JDB or the original creditor would file suit to obtain a judgment; even if you are "collection" proof. A "smart" creditor would take your threat to file bankruptcy as a suggestion for them to hurry up and get a judgment and file it as a lien (making it a judgment lien). If you have real or personal property that is not protected through lien avoidance (11 USC 522(f)), then they just outsmarted you at your own game.

Of course, this is all speculative.

So what's the hangup with just filing bankruptcy? Why play games? Why through away 30% of $9,000 or even 20% of $9,000 ($1,800) when you can get a discharge. Not to mention the 1099-C (Debt Forgiveness) that could have serious tax consequences, I don't know why you would settle when you can't afford to settle.

[slvnomore]

Thank you for your welcome opinion.

So what you are saying is that If i do a co offer a settlement, that that is admiting the validation of the debt, and then i cant dispute the debt throught the debt validation to JDB or collection agencies correct? Then why is there a dispute validation process in the first place?

as for the BK timing...

here are 4 reasons.

1) I am afraid of making a mistake in strategy and so am moving slowly

2) I have medical expenses coming up

3) I am afraid of declaring Bk and then having a medical crisis I cant bk on. This has happened to someone close. a nightmare.

4) since the OC offerd me 30%/40% i was hopeful the JDB would be willing to go lower to enough long enough in the future i could possibly manage to settle, but the more i hear the less hopeful i am...