Gettinout

Examples of actual settlements with major CCs

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i try to stay away from answering questions I do not have specific information for or just simply do not feel comfortable answering due to UPL for example.

I think this would be best asked in the credit repair forum. Not debt settlement. If a debt is discharged no one should ever continue to collect and you should never contact a creditor after BK is discharged to make an offer to settle. You can find yourself in a heap of problems.

I would start off diputing the accounts. There is some very useful info. on this forum to challenge Tl's and have them removed.

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Thank you for the response. I actually started a "pay for delete" thread a couple days ago in the Credit Repair forum. I posted the following in that thread....

I pulled out the discharge paper sent by the BK Court, and in the section "Collection of Discharged Debts Prohibited", the final sentence in the second paragraph states "Also, a debtor may voluntarily pay any debt that has been discharged". Contacting a creditor may not seem that unusual I guess. "

I didn't receive any more thoughts on that thread, thus, I began searching for more ideas since according the Bankruptcy Court, the option to pay exists, but the option to collect doesn't. Thank you though sifxpert.

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The reason I said you could get into trouble is that once you file b/k your non-exempt assets are to be turned over to the trustee and spread evenly amongst your creditors. I would think that if you were to pay one creditor and another finds out you may be opening an unnecessary can of worms.

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Thanks again for the reply sifxpert. What if protecting non-exempt assets isn't a concern?(wish it were)? And if I started the PFD one year after the close of the BK case, such that even the BK Trustee couldn't reopen the case, do you have any suggestions. I've seen portfolios of CC debt for sale (chargeoffs, etc.) but now I'm trying hard to remember if "discharges" were offered too. Do CC companies just eat that loss forever, or do they try to resell those too? Thanks again if you could offer an opinion.

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maxedoutagain: Debts that are included in BK are written off by the original creditors. The US taxpayer has compensated them for their "loss" and you have no further responsibility for them. If the debt was a secured debt...like your house...then maybe you would want to do something about it, but unsecured debts...CCs...are not worth bothering with.

If you do a search on several other forums here, you'll find examples of people who were able to get both the CC TL and the original BK removed from their CRs within a couple years of discharge.

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Thank you for the reply willingtocope. I'm encouraged by your comment, and hoping that the credit card companies do indeed don't do anything with discharged debt, such as sell them to a JDB. As you mention, I am trying to get these TLs removed in a systematic-high probability way. Don't know if the other methods you refer to will be as high-probability with a PFD (assuming the CC company will be receptive to a discussion) but at least it seems that the uncollectable debt will still be in their hands (rather than a JDB). Thanks again.

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maxedoutagain: Just to make sure you understand. Its the Bankruptcy on your credit reports that hurts the most. Individual trade lines that are listed as IIB hurt, but not nearly as much. Giving an IIB CC money to delete their TL is like giving extra money to the IRS just so they'll think nice thoughts about you. There just isn't a good reason.

Its better to get the BK deleted...and dispute any TL that says IIB as "inaccurate". There are threads around about how to do that...

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What would be the feeling on % settle for:

-Nearly 3 years since stopped paying. Nearly 2 1/2 years since

charged off(close to $30K listed as c-o).

- Now(just summoned 1 week) getting legal

- Citi

- Shyster handling advertises 30% recovery on fairly slick website

oriented to potential clients.

- Monthly pays a must.

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Pete1: A debt that old has probably been sold to a junk debt buyer (JDB) so you might not actually be dealing with a lawyer representing CitiBank. Did you use the DV process on them? If they have filed suit, its too late now, but you sure want to make them prove they have the documentation to back this up.

If its a JDB, there's really no good reason to pay them anything...fight them in court.

If its still owned by Citi, 30% might be possible, but there's no way they'll take payments...they'll want it in one big lump.

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Unless they are a JDB. In that event, you never really owed them the money, remember- they never paid more than a dime on the dollar.

Or like in my case, you were able to PROVE you never owed the money, but settled out of court. I got the 1099 anyway.

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I bought a car at a buy here-pay here and I paid it off. After a year or two (not sure when), the lot went out of business and sold their accounts to Wells Fargo Financial Acceptance (division of Wells Fargo), including mine, even though it was paid.

Wells Fargo listed it twice on my CR- once as paid and once as a repo and charge off. I tried fixing it and getting the delete, but finally had to sue for violations. We settled out of court. 2 years later, I get a 1099c for $8500 and the IRS came after me a year after that for taxes on that $8500. With penalties and interest, I owed $2500 in taxes.

I went through the administrative procedures with the IRS, tried claiming insolvency, tried telling them it was a mistake, that the debt wasn't valid, everything. Nothing worked. The IRS told me that the debt MUST be valid, or else how did Wells Fargo get my SSN and other info.

They denied me for insolvency, because I hadn't declared BK< is what the guy on the phone told me. They told me I could apeal in tax court, but that I would have to go to DC and get an attorney, no pro se allowed.

Maybe I could have fought it, but for $2500, it was cheaper to just pay it.

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I'm very new to this myself but I am currently negotiating with MBNA and have an offer for 30% that they have agreed to. I have also been negotiating with GE and currently have them at 50%. The accounts are both about 160 to 170 past due so they have been very willing to work something out as the 180 charge off date is getting very close.

Hope this helps.

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MBNA:

Balance owed - $16300

Settled for - $3500

(approximately 22% of balance owed)

B of A

Balance - $6600.00

Proposed settlement of $1900

Current status waiting on response from them.

What are y'alls experiences with the following:

Union Plus

Chase

Providian

Discover

Compass

Thanks for the helpful info.

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