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About lostindebtinVT

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  1. I have a friend who settled their debts in 2007, they received 1099's from all the creditors from the date of settlement. According to the IRS you must do a balance sheet the date of settlement on each settlement and hopefully the creditor will date it correctly, with my friend, they did. I asked each creditor when they would send the 1099c and they said at the end of the year they would be issued.
  2. I would call the creditor; check their records and offer an over the phone payment off my checking account. Get the third party out of the picture and work directly with the creditor for the final settlement and then you will be sure you are not being taken advantage of. Was the second settlement letter from the third party or the original creditor?
  3. Payments made to a law firm are generally not reflected on your credit report because they do not report to the credit bureau until the debt is paid in full. I don't know what your income is but I think I would check with a bankruptcy attorney and consider filing for bankruptcy protection from those lawsuits. If you cannot do this, are you able to settle the debts for less with them?
  4. After 45 days I started talking to them every two weeks; I had a privacy corp answering machine that screened my calls so the phone would not ring when it was a creditor (I had programmed their numbers in). At 45 days I told them I had no income and my intentions were to try and borrow money from family to settle my debt with them. Some would say they did not settle, but I knew they all would in the end. They all have their policies for settlement and I learned as I went along. Your first creditor to settle will be MBNA or BOA - they will settle about 35% at 90 days.
  5. In December of last year I stopped making my credit card payments and I had $133,000 in credit card debt that was growing monthly at 29.99% interest with late fees and overlimit fees. I was more than panicked with many sleepless nights and the phone ringing off the wall. I'm happy to say that with the right planning; I borrowed from my 401k, received money from family, cut back on my expenses and sold personal possessions - I was able to come up with enough money to settle my accounts. I had the following results: BOA - 38% at 90 days delinquent Chase - 45% at 120 days delinquent Citi - 38%
  6. They offered me a 55% settlement or a 0% financing plan for 5 years. I took the financing plan.
  7. Has anyone been able to settle with Sears. Sears was purchasd by Citi - Citi settled with me at 38% but at 120 days late they will only offer me 55% which I do not have, has anyone done better than this?
  8. I had a discover card and I had a very difficult time with them. They always start at 85% - then they go to 60% and the lowest I got them was 50% - when they finally settled with me. I was still with them and was not making payments - about 170 days delinquent they dropped to 50% and they told me that was the lowest they would go. However, I've read about some lower ones but I was almost at chargeoff and didn't want to try to settle after a charge off. I would not be surprised that they would accept less if you waited a bit. If they see they are not scaring you into paying the 85% they w
  9. Under the new bankruptcy laws even people who are insolvent may not qualify for Chapter 7 due to their income because they have to meet the median income requirements for their state, they then file for Chapter 13 if there income is over the median income and the judge determines which creditors and how much they will be paid. So people who could file Chapter 13 would also qualify - and willing and I have had this discussion before and I'm afraid people will think just because they can't file Chapter 7 they can't file as insolvent; I guess I don't believe in the analogy and people will be sca
  10. You are currently only 90-120 days late - BOA offers their best settlement after 120 days late and it is usually 30-40% of the balance.
  11. You cannot negotiate not receiving the 1099C because they are required by the IRS to file it. However, you also do not have to qualify for Chapter 7 bankruptcy to qualify and be insolvent. Read at www.irs.gov about the 982 form and their definition and talk to them about insolvency. I have spent hours researching the subject and if your liabilities exceeds your assets then you can claim insolvency for the amount you are insolvent. Otherwise if your debts are $150,000 and your assets total $120,000 - you are insolvent to the tune of $30,000 and would be exempt by that amount. The problem l
  12. Some creditors will accept payments for up to four installments but what I found was that they will want more money than they would have accepted on a one time lump settlement.
  13. Mortgage Finance is my business and I've been in banking for over 20 years. When we as lenders see a settlement, it is a settled debt, meaning you paid it. Mortgage Lending is much stricter than a consumer loan such as a car and etc. We usually like to see a good 12 month history after a settlement before we are willing to lend on a home. However, if there was a chargeoff several years ago, you have new debt you have been paying as agreed and you just settled that old debt, you are generally eligible for a loan at that time, sometimes a requirement that you settle the debt is part of the lo
  14. I have a number of 800-735-2293 - that number is good from 8:00 am - 9:00 pm eastern time. This is the number that Sears gave to me to contact them to settle. You can give them your social security number and they will be able to tell you if they still have your account.
  15. It does stay on your credit for seven years, but if you are making payments as agreed since settlement, it should not be affecting you that bad - maybe you don't have enough credit? Do you have a mortgage? Usually owning a home will help. Do you have at least three creditors showing on your report?