Settements with OC and new BK laws (Why wouldn't they lie?)

[Gettinout]

In light of the pending BK laws I would expect OCs and CAs to agree to almost anything with the intention of preventing us from filing for BK and then blatantly contesting their agreements after the new laws are enforced. I am just beginning settlement negotiations and am also consulting with Bk attorneys. I appear to be a slam dunk for BK13 but would rather negotiate low cash payments (if my credit scores can be protected). I am very concerned that at this time stalling tactics are the foremost goal of creditors.

Any thoughts?

I feel that we should all discuss this at length due to the obvious seriousness of future BK reform.

Getinout.

[wildflower]

I'm not ready to settle yet but I too am worried how the pending law will affect my negotiations. I qualify for Ch 7 now, so was hoping to use this to my advantage. It's my understanding that if the new law passes, it goes into effect six months after Bush signs it.

If I file BK BEFORE the new law goes into effect but my BK is discharged/dismissed after the new law goes into effect, which laws would my BK fall under? This will obviously seriously affect the time frame I have to negotiate.

[LadynRed]

Your FILING date will determine which law will prevail. If you want to do CH 7, you better do it NOW. Lawyers are going to inundated with filings very, very soon. Many are already so backed up with new appointments they can't keep up and are turning people away .

[bingo]

This thing will be a trainwreck. I know a lawyer who id opening his office for a few hours on Saturdays to handle the consultations. We're already seeing on other boards people waiting for 6 or 8 weeks to get a 341 scheduled.

[LadynRed]

Trainwreck is right.

Bingo, we'll have to do double-time here and over at FA, there are going to be a LOT more people in a panic. We're gonna need Walter over there, big time !

[strumpeace]

For those of us who are out of the loop, what's the other board?

[bingo]

There are 2 good ones.

the bk forum at www.freeadvice.com and the bk forum at www.creditboards.com

[wildflower]

I'm not filing BK, but since I qualify for it I was hoping to use it to my advantage when settling. Will this new law make creditors more eager to settle in the next six months, or will they try and stall?

[LadynRed]

Will this new law make creditors more eager to settle in the next six months, or will they try and stall?

I seriously doubt it. They are out there licking their chops because people are going to be forced to PAY more and more to them. They're not going to give a rat's patoot about settlements and the threat that you'll file bankruptcy is now going to be completely meaningless to them.

[bingo]

They hear the bk threat a few thousand times a day. They'll likely be unwilling to deal until you're 90+ days late on all of your creditors. Then, they'll run an asset search to see if you're bluffing or not.

I'll never forget a friend of mine owing MBNA over $20K over several cards. He threatened bk unless they settled for 30% or so. They refused and he filed. A few days later, they fax his lawyer a settlement proposal of 25%.