trying to settel with major creditors to avoid filing.

[bigtim6656]

Ok first I have two major debts on my credit. Neither are coming after me but I can not do anything due to my score being so low and worry they will be calling one day. Both are showing charged off on the credit reporting sites.
One is 18,999 and it is from card services which is a company I used to charge sales so I could take credit card when I had a business which is also a judgment. The other a loan at a bank which is 4800.

A friend who has alot of business experience told me not to file and to offer each of my major creditors 10% to settle the debt. My worry was if I make the offer and they refuse they may fell there is some reason I am making the offer and start asking questions.

my thought is when I plan to file chapter 7(end of sept) call them make the offer and tell them if they do not take it I will walk down to my lawyer and file for chapter 7. Figure there is a small chance they would take it knowing they would get nothing.

What do you think the chance is they will take the offer or say no and come after me before I get the bk filed?

Would you try this when you had the money in your pocket to file?

[killinstinct]

How old are they? Any letters from law firms indicating intent to sue? You may not have to do anything.

[bigtim6656]

the 18k one was closed ohh about 7 years ago. This is where it gets complicated, I had my business and lived in indiana at the time of the debt. Then after closing the business I moved to Ky for sometime then moved to North carolina, then back to indiana. We moved alot for a few years. After living in indiana for a year I went to apply for a loan to buy a house. they did a credit check and approved me for 200k . Well in two weeks between finding a house and getting back with them they lost me credit report and reran it and the debt had showed up. my guess is they where watching my credit and figured it was time to come after me. A month later I got a summons to go to court in N.C I figured since I lived and the business was in indiana and I had not lived in north carolina for a year they would throw it out. The court did not and gave them a default judgment. They have not done nothing since and I think it was charged off on equafax a year or so ago. I have not heard anything since.

The loan is also complected. I had auto loan on my dad's car to build my credit when I was 18. When I had my business I got a fake cashier check from Nigeria. I went to the bank to cash it NOT KNOWING IT WAS FAKE OF COURSE and I asked them to call and verify it. They came back and said it was ok and I could cash it. In fact they cashed it with out me signing the check. 10 days later they told me the check was bad and accused me of knowing so. SO I walked out and a year later when the car loan came due to be payed off they told me, they would not release the title until the check was paid. They then offered to give me a loan without with nothing backing it, my dad called it a name loan. I missed a few payments and they turned it over to the lawyer and he sued me and won a judgment. I called him and agreed to make payments and made three. I missed one and called back the next month to catch it up and make my current payment. He never called me back, so I called him and his secretary said he would call me and he did not. SO I gave up. It is also shown as charged off. Has been for a few years now. Both show as judgments on my credit as well as under collections. \\

How old are they? Any letters from law firms indicating intent to sue? You may not have to do anything.

[killinstinct]

I would consult with a few BK attorneys. The consultations are free. Otherwise do some research here under judgements. Depending on the state, there are different timelines and statutes of limitations. They can be renewed, but it is possible they may drop off. Good luck. Keep in mind that deception and fraudulent behavior will get you in the grease big time, so above all, be honest.

[HHM]

For consumer debts, 10% is particularly unrealistic.

The threat of BK has absolutely no impact on the negotiations. Think about for a second, how often do you think they hear that.

The irony for your situation, BK will actually improve your credit, not make it worse. You are going to be better off filing and save the money. The average settlements are in the range of 30-50%, so unless you have the budget for that, just file BK.

[bigtim6656]

That is what I thought. The friend had told me bk did nothing but make credit worst. I found that heard I have heard alot of people talking about success after BK and how they had better credit after then before. I was told by my dad for the first few years they get a little scared of the BK but then they see how things look and how your rebuilding and how you can not file for a few more years. Then they feel better since you have a good history after and have been several years out of BK. I was also told by a person who is headed for their third in less then 30 years I think. It is ok after the first, hard after the second and god you better hope you win the lottery after the third BK.

Before I file I will talk to the bk lawyer I will be using and see what he says. I say file be done with it and on a clean road to a better credit and less headaches. Where if I get this one or that one to settle cheap I still have some others though not much money they add up. Seems every creditor I have ever talked to say they will take 50% to 60% off and no more. I have NEVER heard of a 90% drop

For consumer debts, 10% is particularly unrealistic.

The threat of BK has absolutely no impact on the negotiations. Think about for a second, how often do you think they hear that.

The irony for your situation, BK will actually improve your credit, not make it worse. You are going to be better off filing and save the money. The average settlements are in the range of 30-50%, so unless you have the budget for that, just file BK.

[bigtim6656]

Very true, I am concerned the court will wonder if the business things with the check 18k debt and such might have been fraud. Though showing 100,000+ in sales in a year will help to show that was not the case. I find telling lies and living stuff out tends to get a person in trouble before the end of the day.

I would consult with a few BK attorneys. The consultations are free. Otherwise do some research here under judgements. Depending on the state, there are different timelines and statutes of limitations. They can be renewed, but it is possible they may drop off. Good luck. Keep in mind that deception and fraudulent behavior will get you in the grease big time, so above all, be honest.