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Everything posted by ioalot

  1. ioalot

    Here i go

    I would sit tight. Settlements these days dont seem to be what they were a year or two ago, it seem the creditors are raising their settlements across the board, but I think you could do better with Chase closer to Charge off and much better "if" you wait till after CO.
  2. 1. Chase-after charge off they will soften. I would move any money out of Chase accounts yesterday. 2. Cap1 Sony Card. Had one of these, stopped paying when Chase owned it, then the entire Sony credit cards where sold to Crap1. Crap 1 held it for a year, the best I could do was 65% of an 8k balance. 3. Cap1 Business card-so much easier than the personal card, 50% at 4 months overdue.
  3. Was in a similar situation as you, struggled for years, then lost employment. I was unable to do a BK due to the equity in my home and crappy homestead exemptions in my state. I could no longer afford credit card payments so I started researching settlements. What I did before I stopped paying was to get a google voice # and updated EVERY account I had with the google voice #. I then cancelled my landline phone and got Netalk (like Majic Jack), saved me $70 a month. This was a saving grace in this fiasco, no phone ringing off the wall. We settled all of our cards, except one which we are current with a 3.99 int rate. We were able to settle 90k for about 37%, no law suites, although Amex sent a 36k card to a local atty which we settled with. Our credit scores are crap, but we sleep better now. Good luck.
  4. If I had received this, I would think it is acceptable, however, there seem to be many here who are more knowledgeable in this aspect. It is probably a form letter but does seem to state, once they receive the 1k it is settled.
  5. ALL of your 401k is counted as well as any surrender value of life insurance. If you are filing jointly, then her assets and debts go on there too. I used Turbo Tax for 3 1099s. Was insolvent on the first 2 but not the last. You have to manually add the Form 982 and worksheet on the TT software. Dont forget the worksheet, they will come looking for it if you forget.
  6. Yeah, but at lease the IRS is somewhat reasonable, they will take that pound of flesh in ounces over time:)
  7. 65 percent of an 8k bal after a year with them. Was a Chase card, missed 2 payments with Chase, Chase then sold the card to Cap1, just my luck. I think the only reason Cap 1 held onto it for a year is they had it listed as medical hardship. It was my wifes card, when I sopke to them to explain my unemployment, I also mentioned my wife could not find full time employment due to a high risk pregnancy, they classified it as medical hardship. They do not consider unemployment a hardship. They started at 80 percent at about 6 months and stayed there till we settled at 65%. Tried my hardest for 50% in a lump sum payment, ended up with 65% over 6 months, If I recall correctly, I could have spread it to a year. They dont care, they have this reputation of not settling reasonably, and quite frankly it works for them. They either get what they want or will sue. Research from many different forums have anywhere from 50% to 85% settlements. It had already charged off and I didnt want a law suite, I had assets they could attach to.
  8. Leave the 401k money alone, if you do eventually have to file for BK, its safe. If its the phone calls are bothering you, they wont stop by the way, ditch your home phone, get a VOIP line for your use, give n one this number other than family/friends. Also get a google voice # and give that to the collection agencies and everyone else for that matter. Always call the collection agencies via the google voice number as well. Saved me a lot of anxiety that way, my credit reports now show the GV as my phone number.
  9. I would like to see willingtocope's take on this. How do you get the OC to talk to you? I had an amex with a CA, tried to call amex, the gave me some story that they could only provide me with the CA info and that they could not even document the call as it is now with a CA (assigned to a CA, not sold.)
  10. Why bother, it will fall off your credit report soon, by end of this year or early next.
  11. I am referring to the agreement in writing, they usually say the once you have a verbal agreement in place and the payments are set up, ie auto draft from a checking account, they will mail the agreement. Some insist on having the agreement in their hands first, whatever works for you, but in any event, unless you have an acceptable agreement in writing, you have no deal. So, I setup the first payment to be drafted 10 days later so I would receive the agreement in writing BEFORE they got their first payment. I had a separate checking account for settlements, so if I did not receive the agreement, I would not fund the account.
  12. That sounds like Chase, I settled 3 with them, all at about 90 days late, 1 for 35%, the other 2 for 30%. Wait them out a bit longer. Also, it is 4 payments over 90 days, dont know if that will help you. They will tell you that they will send the settlement agreement once the payments are set up, so I set the first payment 10 days out so I had time to receive it before I funded my settlement checking account. Good luck.
  13. Thats good news, 25% is pretty good for Amex. How long was it overdue?
  14. First source is a bunch of morons! I settled a Cap1 business card through first source. Actually first source called and Cap1 got on the phone and setup the settlement. A few days after they received the final payment, I all of a sudden started getting collection calls from first source, they even called a relative to find me. The excuse first source and Cap1 gave was that the account still had 3 weeks to cycle and that it was in fact settled. Bull S^&*, I gave them a verbal a$$ whopping, they had to manually look for my sister to call, she is not on the account nor does she live with me. Cap1 apologized and the calls did stop and the account is listed as settled on my CR. Hopefully its just that the settlement did not update yet.
  15. Depends on an individuals situation. Its alot easier for your credit to bouce back in a few years from lates than it is with charge offs. For employment purpose's, many of the head hunters Ive spoken with allege when they see a charge off, its usually an immediate NO where as lates, they will look further at the situation that caused your financial distress. Same with a mortgage. and the settlements do get better closer to CO.
  16. It has been my experience that the OC's dont do much homework as far as assets and income, I believe they leave that for the attorneys. If you are not worried about your credit and are judgement proof, you will be better off settling with a CA. As ColtFan said, most OC's have a take it or leave it attitude, some are worse than others. 50% after 3 mos is not bad, however, I settled several at the 3-4 month mark for 35%. I settled 100k at 35% average with 25% being the best and 65% the worse, all before charge off, except the 65% Cap1 which was at a year and all with OCs Good Luck
  17. Thats why I took 65% after a year with them. Although not in writing other than what I said above, the rep assured me the account would be settled, no they would not sell it. "Most" original creditors dont play the same games as collection agencies, I believe its just one way Cap 1 sticks it to you, they report an outstanding balance on you CR on a closed account but report it as current. My goal was to settle my accounts, and move onto credit repair once that was done. As Options has said, how can there be an outstanding balance on a settled account, well Cap 1 will have to explain that to a judge when Im ready to move on to that phase.
  18. On the front of my settlement from Cap1, it states the account will be settled and no further collection activity. The "settled with an outstanding balance" is on the back with all the other legal stuff like over $600 forgiven, you will get a 1099C, etc.
  19. May 26 2012 is 210 days from the OPs last payment. OC must charge off when 180 days late, which equates to 210 days from last payment. Boa charges off like Options says, at the end of the month in which the account is 210 days past due. Unfortunately, thats how Cap 1 reports. When Im ready to move to credit repair, Ill address the "morons" at Cap1.
  20. You may be too late to avoid CO. You last paid 10/26/2011. Your next payment was due on 11/26/2011. Comes 12/26/11 you are considered 30 days late, comes May 26/2012 you are now 6 mos late which the debt must be charged off by the creditor, that is the law. Some creditors CO earlier but must CO at 180 days. What was the offer? Cap 1 is the ABSOLUTE worse. In the past year Ive been in this mess, the best I have seen is 40%, most end up settling between 60-80%. Myself, I settled for 65% with them over 6 months. They had the account for a year, never went to a CA. They will report the account as settled with an outstanding balance, thats as good as its gonna get with Cap1, sorry. Good Luck
  21. Was in the same boat as you with the Chase Sony card, then sold to Cap1. I stopped paying when it was still Chase, then 2 months later went to Cap1. They held my account (my wifes actually) for 11 months in their hardship dept. I went through hoops trying to get a decent settlement, the best I could do was 65% payed over 6 months, I think they would have done a year, I dont recall. We have 3 more payments to make and we are done. We had assets to protect, but no income, other wise I think we would have ignored them longer, they do seem to enjoy lawsuits. As far as reporting goes, as you stated, the famous line #8, I settled a Cap1 business card and they reported as settled with an outstanding balance. My credit report shows the outstanding balance but the trade line is now being reported as current. I think that would only be hurting my debt to credit limit ratio. Once my head stops spinning Ill move onto repairing my credit reports if possible. You may be surprised about your lease, they may just offer the loan without checking if you have been a good payer. You may want to contact them now about purchasing so youll have a heads up if youll need a co signer.
  22. TiredandAfraid, You really need to explore all the options you have been given. Although I generally agree with what Andy has said you must think about the unstable future we all face. If you take Andy's route, what happens in a year from now, and you experience a catastrophic loss of income, one or both lose your jobs. You now have 50k less to survive on, and with 4 kids, that is scary. I don't know too much about BK, especially in TX but you should see several attys as willingtocope says, take what they say with a grain of salt and do your own research into BK. Settling is also a route to explore if BK isn't what you want, although Id leave the retirement alone. I had to go the settle route since NJ BK exemptions suck and I didnt over borrow on my house when the banks were begging everyone to, so my defaulted credit card bill would have turned into liens on the equity in my home. Just my 2 cents. Whatever you decide to do, good luck.
  23. Agree with everyone on the BK route, but if that isnt possible you may want to save up and attempt to settle the cards. 15 percent will probably not happen, closer to 30-50 percent.
  24. I agree with Thomassl, Your more than halfway there, keep your 3k.