Want To Try Negotiations Before BK

[pmcolby@hotmail]

Hi,
I have a BK attorney and thought that I would take the bankruptcy route. My home was auctioned off last month and the difference was $8000. I owe a total of around $25 thousand and would really like to have my attorney negotiate with these creditors for a payoff amount. My soon to be X has taken everything I had, filled for BK himself and just walked away. I've lost enough, I don't want to loose my credit too. I'm 50 and would be 60 before I could get started with credit again. Anyway, I'll finish my saga by asking if anyone out there has done this and were they sucessful at it? I would love some pointers!
Thanks
Paula

[BK2008]

Has your attorney talked to you about a chapter 13 filing?? Where you reorganize your debt and pay down on the negotiated amount??

Is you x's name on the home?? Seems he will be sharing some of that pain, too, along with any credit cards or other marital debts (depending on your state) you might have.

[AngelinaCat]

It is worth a try, but as another currently running thread advises, many of the creditors have a policy of either full payment or no payment at all. It would seem, especially in this economy, that the creditors would like to get at least something as opposed to nothing.

Good luck, and welcome to this Forum.

[sick of debt]

If you negiotiate with your creditors, you may receive a 1099 for the difference.

[Help!]

One more thing to think about before you negotiate... when you say you owe $25K does that include any debts that you might be held responsible for from your ex's BK? You probably already know this, but creditors can come after you for debts incurred in his name (even if you were not a joint account holder) if you live in a community property state.

I am skeptical about creditors and negotiations - I just don't trust them to live up to their end of the deal. I thought about doing the same before I filed, but decided that I could care less about my credit score as I have no desire to finance anything ever again. It isn't easy either way... good luck.

[AngelinaCat]

I am in agreement with Help! about not trusting creditors to keep their end of the bargain.

We had made a payment agreement with one of the medical provider's left over from 'Hub's prostate cancer surgery. We dutifully made payments of about $50.00 a month to this provider until the amount had been worked down to around $500.00. At that point, we got a 'nasty-gram' from the provider that we had broken our agreement and if we did not pay the full amount now, they would turn it over to a collection agency to persue. 'Hub fired off his own 'nasty-gram' stating with proof that that we had made our payments as agreed and were not behind, and it was the provider who had broken the agreement by sending this demand letter, and that we were filing BK and they WOULD be included and that they had just lost themselves $500.00. In other words,"Go eat worms!"

[AngelinaCatHub]

Wife above is correct. Also you can rely on "Help!" with some stuff he knows. It does not seem like a lot and I don't trust those consolidation companies with grandiose promises. Find out what the ex may be responsible for, then go to the creditors yourself. Be honest, talk professional, tell them you wish to pay your fair share and make a contract for 1/2 or whatever he owes them and then ask for liberal payment arrangements. If the person you talk to says it can't be done, ask to go to higher management. Then if that won't work explain, "Half of something is worth more than all of nothing" and nothing is what you will get if YOU force me to go bankrupt 7. 'Hub

[ssdsco]

Hi,
I have a BK attorney and thought that I would take the bankruptcy route. My home was auctioned off last month and the difference was $8000. I owe a total of around $25 thousand and would really like to have my attorney negotiate with these creditors for a payoff amount. My soon to be X has taken everything I had, filled for BK himself and just walked away. I've lost enough, I don't want to loose my credit too. I'm 50 and would be 60 before I could get started with credit again. Anyway, I'll finish my saga by asking if anyone out there has done this and were they sucessful at it? I would love some pointers!
Thanks
Paula

The posts from treehugger1 and others in the Collection forum might offer some pointers. I think it will be difficult to pay less and not have a negative impact on your credit.

If it was me I'd go down the path that allowed me to save the most for retirement which is probably not giving any money to creditors and filing BK if you're eligible.

[JollyGG]

Check out posts by treehugger1 (http://www.bkforum.com/member.php?u=3618) He is currently going through the process himself of trying to renegotiate and pay off his debts to avoid a chapter 13 during which time he would need to defer his student loan payments.

Though you will need to be aware that anything you do that is not paying your creditors in full will significantly negatively effect your credit. So be prepared for a hit no matter what you decide.

[Frogge]

Hi,
I have a BK attorney and thought that I would take the bankruptcy route. My home was auctioned off last month and the difference was $8000. I owe a total of around $25 thousand and would really like to have my attorney negotiate with these creditors for a payoff amount. My soon to be X has taken everything I had, filled for BK himself and just walked away. I've lost enough, I don't want to loose my credit too. I'm 50 and would be 60 before I could get started with credit again. Anyway, I'll finish my saga by asking if anyone out there has done this and were they sucessful at it? I would love some pointers!
Thanks
Paula

Hi Paula, I understand where your coming from. We thought about this too but we have a much higher amount of unsecured so not sure if it's best for us. In your situation, I would ask your attorney to assess the creditors (see how much he can get the debt down to) and ask him if he can negotiate credit reporting as part of the deal. Since your attorney will be involved to make solid arrangements in writing, you may be able to get a break on your credit report in addition to payment(s) you can live with.

I agree you should read the collections board - there are some very experienced and smart people over there. Good luck.

[justplaintired]

The posts from treehugger1 and others in the Collection forum might offer some pointers. I think it will be difficult to pay less and not have a negative impact on your credit.

If it was me I'd go down the path that allowed me to save the most for retirement which is probably not giving any money to creditors and filing BK if you're eligible.

I agree. Retirement should be your goal right now. I am 46 which means this will stay on my report until I am 56. But, atleast I am saving my health, which was suffering from the stress of debt. And atleast now we can have a chance to save for our retirement which was impossible with the debt we had.

Best wishes and I think I'd call a few attorneys and get some legal advice. Can't hurt anything and it might save you from making a mistake that will only postpone the inevitable.