negotiation attorney or companies

[lrn]

Hi
I have unsecured debt after foreclosure $200K
I try look for help i negotiating to a lesser amount with collecting agency.

do you have some guidelines about negotiating to pay lesser amount?
or interview questions to ask in case I need to hire a negotiator
my thinking because the unsecured debt is large, it is better to have a professional negotiator.
but in Florida, there are lots of people self promote into "experts" status.
I appreciate all your help.

[tobee43]

is the 200k a deficient amount after your foreclosure?

i know here in florida they have attys who say they can negotiate your situation however, i'm really not certain i personally would be comfortable with that. being that is quite a large amount, have you considered filing for bk? that would scare them in to a negotiation if it is unsecured debt. in other words if the debt is all unsecured and you want to work this out i would say to them, if you can't work with me, i'll just file and you'll end up with nothing, so it's in your best interest to work with me, not against me.

hope it all works out for you. yes, we are one of the "lucky" recourse states here in florida

[justbroke]

For me, I don't think anything would be worth negotiating if it is a single $200K debt! Worse case, is that they negotiate down to 10% (or $20K), and then issue a REQUIRED IRS form 1099-C (Forgiveness of Debt). That 1099-C is going to show $180K and that is taxed as ordinary income! Unless you have about $72K sitting around to pay the taxes on that (39% tax rate), I suggest that "negotiating" an unsecured debt is fruitless!

That is why bankruptcy is more powerful. A Chapter 7 bankruptcy would simply stop collection on that $200K debt for about $3K in attorney fees and about 120 days in waiting. If you cannot file a Chapter 7 due to income, and need to do a Chapter 11/13, then that is a different story.

If your total unsecured debt is only $200K and you do not qualify for a Chapter 7, you should be able to file a Chapter 13 because that amount is under the debt limit.

[lrn]

it is only one big amount, one creditor,
I have too many crazy things tangling all over to be able to do Ch 7.
I used to be a real estate investor.
so if I can negotiate down to 10%, that is good.
I can take another job, male stripping, flipping houses or whatever to pay IRS.
don't take my words, because everyday, I get up in a confused state.
my mind is spinning from one idea to another idea, crazy.
please let me know who can help me negotiate.

[lrn]

Hi
still the question
can anybody help me about an "honest" negotiator, so I can do more due diligence?
well, i can give one lesson here, if you are in debt, rule #1, do not borrow from your relative(s).
stranger can cut deal with you, and it's only about money.
But relative, you are done, done, done. 100 times more stresses. you will not be able to do any bk chapter. Guilty, guilty. I feel horrible

[justbroke]

Rule #1 is never "borrow" from your future. In other words, never use money from your protected retirement accounts. Borrowing from family would be so distant for me, that it has never even entered my mind when I was insolvent.

As for negotiating, if you are negotiating this type of debt, you should be seeking professional help; such as an attorney specializing in this area. They will probably tell you to file bankruptcy. I do not understand why you are hesitant. Paying $75K in IRS debt over 5 years, with interest, is no small feat and they will want a bunch of documentation. (Of course you could somehow get a 90% deduction in the amount, and receive the huge IRS bill and then file an OIC, but even then, you need a bunch of money.)

Your problem here is that this is now a "judgment" creditor. They have probably already filed it and it's now a judgment lien. They can wait and wait and get their money over the next 20 years and attach property (as allowed by your State's underlying non-bankruptcy laws).

You will not find much help here, and the only suggestion is to file bankruptcy or find an attorney that specializes in this area... paying that attorney to negotiate. However, and again, this is not a simple debt. The creditor already has a judgment and that makes the creditor more formidable.

[lrn]

Thank JB,
I read your blog, and have high respect for you. My brain is dead. I cannot do research or figure out which way to pursuit.
You have the capability to do pro-se, that is Wow.
Like I said, I borrowed from my in-law, and never think about, she will be unsecured creditor.
My wife and I are in here together, and in-law helping with money. bk is too ungraceful.

what is OIC?
You wrote: " seek an attorney specializes in this area? can you be more specific about area?
We did consult two bankruptcy attorneys two months ago, both want to do bk.
the feeling: if you visit a surgeon, he wants to operate on you.

[ValleYum]

OIC = Offer in Compromise

[Pjmax]

I'm not a legal expert, but it just appears to me that the OP wants to pay anybody and everybody, except an attorney.

[LadyInTheRed]

Thank JB,
bk is too ungraceful.

What? Ungraceful???!!! Odd word to use in connection with finances, but I'll go with it. Was foreclosure graceful? Do you think paying an attorney to negotiate a settlement is going to be graceful? If you can't pay your debts and meet your living expenses, you are bankrupt. The most graceful way out is to file bankruptcy.

I'm not a legal expert, but it just appears to me that the OP wants to pay anybody and everybody, except an attorney.

I think so. Paying attorney fees and BK filing fees will be much more graceful than settling a $200,000 debt.

[LadyInTheRed]

One more thing... My financial life is much more graceful than it was before I filed BK.

[Pjmax]

One more thing... My financial life is much more graceful than it was before I filed BK.

...and when one's financial life is more graceful, so is one's entire life.
Mine certainly is, after BK.

Which is less graceful; a foreclosure, deficiency collections, potential whopping IRS bill, convoluted schemes to pay them while borrowing from relatives for day-to-day expenses - Or BK?

Irn, I'm sorry to sound harsh, but you are digging a hole you'll never get out of. Filing bankruptcy is taking control of and managing your finances. Yes, the in-laws are a creditor, just like the others, but there is nothing to stop you from paying them after you are discharged.

If you were not happy with the two attorneys you met with, go interview more. It's not unusual to meet with several, and you have some complicated issues so it will be more difficult to find one that will fit, and that doesn't necessarily mean finding one that will only tell you what you want to hear.

I do wish you the best, but you need some competent legal help.

[pamkev]

One more thing... My financial life is much more graceful than it was before I filed BK.

No truer words spoken

[AngelinaCat]

Our lives are much more graceful once we filed BK, and learned to live on 'cash only' and stop robbing Peter to pay Paul each month.