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About brokeanddesparate

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  1. i also owed a large sum to chase, 32k, right before charge off i got a letter from them telling me their in house attorneys would be taking action up to and including a lawsuit, i offered to settle at 15percent, they told me 55percent was it, i talked bankruptcy possibility and unemployment, and told them between a relative and some exempt funds i could do 20percent, they got approval to go as low as 30 or wait for legal options, i decided to settle at 30, which for chase seems to be good, they are not as lenient as last year, and there was just an article in paper about chase keeping in house and suing at charge off, but citi has not sent any letters like that, and their charge off is a month before chase was scheduled to charge off. Citi lost their chance when i gave all my resources to chase, citi debt is smaller but settlement amount was same, better to use those funds to get rid of bigger debt, maybe citi does not offer a better settlement till after charge off, or maybe i won't get sued, i would really rather beg relatives again if it would come down to 20percent, wish me luck.
  2. ok, i have found citi the hardest one to settle, one account 20k. charges off in 7 days, final offer they gave me is 40percent (can't do) or 5 year payments of 350 mo, or 1 payment of 350 to delay charge off by 30 days. If i make the 350 payment should not that set the charge off clock back to 6 months? Rep said it would just delay by 30 days. Please give your thoughts. Edit/Delete Message
  3. ok, i have found citi the hardest one to settle, one account 20k. charges off in 7 days, final offer they gave me is 40percent (can't do) or 5 year payments of 350 mo, or 1 payment of 350 to delay charge off by 30 days. The one you let go to CA, how did you get that 15percent settlement? Did you get taken to court? i have always heard settling is harder after charge off. Please give your thoughts.
  4. Ok, so now citi account charges of april 1, approximately 21k owed, final offer is 40percent or approx $8400, i had offered 15percent, they will not offer less, they tell me once it charges off i have other options, he won't say what they are but probably will not be lower through collection, is all that true? They offer 5 year payment plan of $350 month, which is under 10percent interest, i have no job and unemployment comp ended 6 months ago, i know bk is an option but i have reasons to not want, they tell me if i pay 1 payment of 350 they will delay charge off for 30 days, does that mean if i take the 350 a month offer and stop paying the charge off also starts 1 month later? or does that give me another 6 months before charge off? Citi seems to be the hardest to settle with, do they get easier after charge off?
  5. Last year bank of america settled with me at 15 percent, chase seemed to be playing much harder ball, just read in paper chase in florida is being more aggressive in suing and got a demand letter to pay in full on account that is about to charge off or face lawsuit. I had been trying to settle at 20 percent as i heard chase was much harder. I had told them 15 percent was best i could do. I called today and they dropped from 55 to 30 percent and they told me this was final offer, i fell for it and accepted. Has anyone recently settled for less with chase? Did i cave to soon? In house legal was going to start suit paperwork in 20 days, maybe if i waited would have gotten better, but this seemed real. Any recent experience with citi? they have not dropped below 4O percent on account that charges off in a week.
  6. Ok, i have only missed 2 payments of my $20,000 past due credit card. Already they have offered me a settlement of $13,000. I was on a program for a year with them after missing payments over a year ago, where i was on zero interest and a reduced payment, but now my unemployment comp has run out, i could no longer pay even the small payment, but it expired and went back to double the payment, i called them, they offered me the zero interest again and small payment, but now with no unemployment check i told them its not possible and i may have to file BK. I can't pay the settlement, but can i expect them to keep lowering offer before charge off? Is 6 months the time frame for charge off? I was kind of surprised by settlement offer, i expected it would be after 5 missed payments. Any thoughts on this?
  7. you mention its 5 credit card companies, do you mean 5 differnt banks? how much is on 1 biggest bank? Remember, if you are headed to chapter 7 bankruptcy and have a bk lawyer on retainer(even a $100 retainer) and you mention to cc company when discussing settlement, they know they are likely to get 0 if you bk, so let them know that is something you are considering, but that if you can afford you would rather settle, don't have them deal with your bk attorney, he wants you to bk, negotiate on your own. At my final offer i got of 15%, they wanted to call attorney's office just to verify he was on retainer, they only needed to speak to receptionist, i had called attorney office to let them know to expect call, they just want to verify that bk is an option. Search this site for "settlement", you will see lots of info. It all depends on your hardship, are you now long term unemployed? If you earn as much now as you did when you borrowed and just don't want to pay, thats not a case for settlement probably, but hey, if bk is looming each card wants to settle with you for something rather than lose all in bk. Remember, the amount of debt you are forgiven for is taxable to IRS unless the total of home equity, 401k, IRA, savings, is less than the forgiven amount. Say 50,000 is forgiven, you have 0 home equity, $500 cash savings, and $9500 in 401k/IRA ON THE DAY YOUR FINAL SETTLEMENT PAYMENT on the forgiven card is made, only 10,000 is taxable if file with irs for insolvency- 50,000 forgiven minus 500 minus 9500 equals 40,000, that is the amount of insolvency as measured on day of final payment, so forgiven debt 50,000, minus amount insolvent, 40g, leaves 10g taxable. If your home equity and other accounts are greater than 50g on date of final settlement, the entire 50g is reportable lncome to IRS, and you will owe taxes. Bank will issue a 1099 and its up to you to prove insolvency to IRS. CONSIDER YOUR OPTIONS, CHAPTER 7 OR EVEN CHAPTER 11 can be cheaper in long run, no taxes due on amount forgiven in bk, and no money spent settling. There are many reasons people would rather settle than go bk, but if bk is possible its better in long run. consult an attorney about bk before going settlement route, and remember the attorney earns more if you go bk, so think through his advice and weigh options. Avoid at all costs going past 6 months past due without settling or going bk, its easier to deal with bank than 2nd party collection agency.
  8. i am under the impression the 1099 i will be getting includes all interest and late fee's, not the smaller amount, if anyone knows different please post. Also if equity in home or any money in 401k or IRA exceeds the forgiven amount, than filing insolvency form with IRS will not do away with 1099 obligation, i would assume committing a federal crime of filing for insolvency falsely would be easily caught by IRS since various early withdrawals from ira also generate paper, and even having ira generates paper with irs, so be careful about trying to absolve 1099 with a insolvency form to irs. Any irs experts out there who want to estimate odds on getting caught falsely filing insolvency? i am an amateur, my guess is 100% chance of jail. Even paying taxes and penalties out of ira is a big savings on a nice 15% settlement, although the taxes due may turn out higher than the settlement amount. If i did not have equity put in home in last 10 years, bankruptcy would have been better. Please write your congressman and senators to try to get ira and 401k early withdrawal penalties forgiven in the economic crisis we are in, plus let taxes be spread over 5 years. They do that for people in federal disaster area's, so why not a break for others, economy is a disaster. tons of taxes and penalties being collected as people take out early to survive in this crummy economy.
  9. Even if they eventually settle for 40% of origiinal debt, the amount they will report on a 1099 will be the increased charges minus the actual settlement, you will owe income tax on that amount, so while the settlement may be smaller, it could result in a large tax bill to irs unless you are insolvent on date of settlement.
  10. call the clerk of court and verify lawsuit dropped, they may be hoping you don't show up and they can get a default judgment.
  11. always answer, never let them have default judgment, go to court and sk hem to prove to judge they own the debt if they are a collection agency.
  12. Has anyone have any recent experience settling credit card with chase? i just finished settling with bank of america for 15%, anyone knowwhat to expect with 30,000 from chase? Edit/Delete Message
  13. Has anyone have any recent experience settling credit card with citi? i just finished settling with bank of america for 15%, anyone knowwhat to expect with 20,000 from citi?
  14. Unless it shows up on your credit report, which it should not, UNLESS YOU MAKE A PAYMENT, they will be in violation. DO NOT MAKE A PAYMENT OF EVEN 1 CENT or you restart SOL, if you are outside of SOL and it's not on credit report, if they do sue, remember to answer and show up at court date, use SOL defense. if you don't show up they will win a judgment and despite fact that it was outside of SOL, they will win and you will have a collectible judgement. Do not restart statute by making a payment.
  15. Did you let checks cash? is it over or do they want more now?