Credit Cards willing to deal over debt

[deadbroke99]

http://www.goupstate.com/article/200...deal_over_debt

www.goupstate.com source

[redwritingmom]

That is a hilarious paragraph. By the time a customer is 90 days in arrears, missing a payment is not an exception...it is a rule. Glad to hear they are more open than before.

Before we filed, we had a chunk of money that we wanted to use to settle with cc companies. We wrote to each and offered each the same percentage of our balance. We told them that it would be cents on the dollar or zip, that it was an "everyone agrees or no one gets anything (could not be preferential)," that our only other option would be to file. Do you know that the cc companies who said "no" the fastest were the ones to whom we owed between $800-$1500. Duh. So, they all got nuthin. I guess they are finally figuring this out.

Great article, btw.

[cyn5]

I am wondering if anyone has really had any success with this? I mean, by the time you are even close to 90 days your accts are usually turned over to a collection agency. Then are the collection agencies willing to settle for 50% of the original debt?

[ccmisery]

I tried Discover last week, no help at all even though they have a Financial Hardship link on their website, discussing how they will help people in need who are cards holders.

When I called to ask about the service, no one knew what I was talking about and said they don't know anything about that. I was then put on hold and fwd to the collections dept.

Who has 50% of large balances to pay a settlement? I surely don't otherwise I would be debt free in a year.

[keepmine]

I am wondering if anyone has really had any success with this? I mean, by the time you are even close to 90 days your accts are usually turned over to a collection agency. Then are the collection agencies willing to settle for 50% of the original debt?

In 05, when I was at the 150 day mark of default, Chase offered me a 45% settlement and Cap1 offered 50%-both offers were unsolicited. I didn't pursue them because, bk was my endgame.

[DYLAN150]

Just wondering, if the CC company accepts 50% of what you owe, do they want that in one payment or will they take payments. Who has that kind of money if you are behind in your bills?

[southernbelle]

Didn't I read in another thread where credit card companies send you a 1099 at the end of the year for the difference owed if they settle with you? If that's true, how is that a help? Doesn't that affect your tax bracket? Personally, I think filing is better than settling if it comes down to a decision of putting food on the table or paying credit card debt. With massive job losses, credit cards are the last thing on people's minds today.

I hate the way credit card companies make it seem as if they are granting us a gift by settling with us "if we meet certain criteria". These new BK laws were intended to keep us from having debts written off and make our "Fresh Start" a more complicated process. With the present state of the economy, it seems like that plan is backfiring!!

[BigJohn]

I don't believe anything written in the opening article. To me, it is just Public Relations to these people. Sure, after 6 -12 months they might offer 50% or less on the dollar, but they don't make these offers out of the goodness of their heart, they make them hoping they will get some money.

[willbfree]

I can tell you from personal experience that Chase and Bank of America have both offered to renegotiate our debt as stated in the OP post. Chase after missing our first payment offered to cancel all late fees and penalties (an unbelievable 400 plus dollars), to not report the late payment to the credit agencies in exchange for catching that payment up to date. They then wanted to renegotiate new terms for the balance on the card once the second payment was missed. Bank of America called and is willing to renegotiate the balance and terms of the loan.

GE Money was nasty but now they are calling nonstop asking that we call them and work out details. Not a chance after the way their people have acted on the telephone. I don't think most of these companies understand that sending hateful, nasty collection calls that they do their companies any favors. The hardest for me personally has been the nice people who I understand are just doing their job. I have answered every single call, I remain pleasant and polite and explain as I have been instructed by our bankruptcy attorney "I am sorry but I can't pay you right now." Then thank them for calling and hang up. We are filing our taxes as instructed and once our refund is back and spent (again as instructed) we will be filing our Chapter 7. In the meantime I have used the money to fully stock our pantry and freezer with food and prepare for the upcoming bankruptcy procedure.

[BigJohn]

After we filed, one creditor called and said he wanted my Social Security check. He said he wanted everything. Didn't care about anything espeially the Federal stay.

[mkuki]

^^^ LOL!! You should have told him..GAME ON!!

[njguy1972]

well

only being 60 days late:
Discover offered me a settlement at 31% of what was owed and Amex offered settlement at 40% of what was owed.

[shabam]

The banks realize that if we successfully file for ch 7 they usually get nothing. Not even 1 cent to the dollar. So now they are willing to negotiate.

Now if it is true that they will send a 1099 for the difference, seeking the advice of an accountant is probably a good idea. It still may work to someone's advantage if they negotiate a reasonable payment and rate.

[shabam]

After we filed, one creditor called and said he wanted my Social Security check. He said he wanted everything. Didn't care about anything espeially the Federal stay.

Was this a creditor or a collection agency. They can basically be sued. My second favorite new site apart from this one is http://www.debtorboards.com/

These guys tell you how to sue the crap out of a CA or any creditor breaching the law.

[treehugger1]

"debtorboards" can be a good site, and there is a ton of info over there. On the other hand, playing the "law suit game" can be costly in many states. In my state, it costs money to answer the original complaint and once the discovery component begins, you pay for every motion you request of the court. In addition, answering complaints and filing counter claims can take up a great deal of your time.