Received Settlement Letter From Attorney for CC

[SecondChanceGal]

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[LisaM]

I will certailnly send some good thoughts your way!

When my husband and I filed jointly, we paid $100 to retain the attorney, and he said he'd work with us on payments. That got everything started for us. Fortunately, we were able to comlete payment in 2 lump sums in the months following. In fact, we paid 1/2 a couple weeks after retaining him, and the other half was paid the morning before our 341 meeting!

There are are some out there that will work with you! Hopefully you can find one on your area!

[CATCHMEIFYOUCAN]

American Express

Got a letter today from American Express - well, an attorney for them. They will settle for 60% less than I owe. Around $1000. If I had that, I'd have filed bankruptcy already.
What is next now? Not a letter to go to court, but it's from a law office, this letter.
I'm actually getting quite nervous - I have to find - and I've been calling all day long - either an attorney who will take payments as I go thru the Chapter 7 filing - I can pay the filing fee - or I have to do this myself. Just a little tied up in knots today...
Send some good thoughts my way that I find one that will take payments..anyone know an attorney in southern Ohio that will, pass it on!!

I use to have an Express 20 years ago, when I filed Bk THAN. I too received a letter for settlement. I simply wrote back, that I was filing Bk and to contact my attorney if questions.

If I'm reading things write from what I've learned, if you settle for less, you know the creditor can just write off the remaining balance and get a tax break. YOU however may have to pay taxes on the forgiven amount!

I guess you don't have an attorney yet? You haven't started the Bk process? Have you gone to any free consultations? Most attorneys will accept a retaining fee of a couple hundred dollars or less. (I'm in Virginia) Mine was $149 to retain him and than I could pay him monthly (close to $3000) because I was filing for Chapter 13, which is about $500-1000 more than Chapter 7, depending on the circumstances. The more "difficult," you think your case is the more money of course it will cost (like if you have alot of assets etc.) I had to pay for the CCCS class (which cost $50) but the attorney deducted that amount within his fees, and than after you filed, at the 341 meeting we had to take the Financial Course, which the Trustee gave just before the meeting which cost $299, but again the lawyer included that amount within his fees. He also allowed $1000 of the total $3000 to be paid through the chapter 13 plan.
End result, I was able to convert to Ch7 and the $1000 that was going to go to the lawyer through the other Ch13 got dropped I didn't owe him a dime more!

Best of Luck, Catchmeifyoucan

[SecondChanceGal]

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[BKOnce]

Counter offer at 20 cent per 1 US mint dollar!...

[JRScott]

I wouldn't worry to much if its the first settlement letter. Basically they'd have to take you to court and get a judgment saying you owed the amount. Then they'd have to take you back to court after a period of time in which you made no payments to seek garnishment.

Are you still paying the CC etc, I mean what you can?

If you are, stop paying them all. Pay only the necessities....food, transportation, shelter, clothing. Use the rest to finance your BK