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Newbie looking to settle


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I want to improve my credit and settle on 2 accounts/

a collection ($17.5K) with Capital Management Services Inc In Buffalo, NY

and a Judgement (13K+ costs) with CACV of New Jersey represented by Bronson & Migliaaccio. I ignored the judgement which was back in March 06.

What is my best step to settle and start my credit repair now? What is the best wording?

How do I go about the judgement? Do I need a lawyer? can I do this myself?

any help woudl be appreciated

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First major question is...do you have the cash to offer a reasonable settlement on either or both of these debts?

Very important point. If you don't have cash, they will probably not deal with you. A payment plan is a waste of time for them, and prolly for you. In my experience making payments to a collection agency only increases your debt and costs you lots of money.

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I'll definitely third that.

The best thing to do is to sit down and write out each and every dime you have coming in and going out monthly. Then look at what is on hand wihtout burying yourself, such as rob Peter to pay Paul. Therefore, if the debt to one is now $17K, and you have $10K, send them an offer of settlement. They do not have to accept, but, in many cases, they will just to close the books and take the money and run, especially if the amount offered is near to the original amount before fees and interest. If not, make an offer of payments to the maximum YOU can afford, not them. Even if you have to send them your income and expenditures, do so. And, if you do, be sure and add the maximum allowed by your state for entertainment, which you will find in the BK13 section. Even if you do not go out often, you want to claim this as a way to assure you have some extra cash to cover unexpected costs, such as a new tire. They can try, but, as I was told, they must honor this claim. True, they will usually respond with a larger amount, but, don't worry yet. Why is because when you include your outgoing monies, you have already included a "cushion" to cover rate increases, etc., from your utilities. Don't tell them, or send them copies of your monthly statements. It comes in when you counter back with a little more each month. Then they usually accept because you have also added that, IF and WHEN possible, will adjust your monthly payment. Yes, you will do this if receivkng a raise, but, not the very first month. Maybe the next. You get the drift.

Another option is if you can be positive of having say $2500 extra every 3 months, and they will agree to stop adding interest, you will remit this balance and have the claim paid off even sooner. Since you offered $10K, and they will be paid within a year, they may accept this. You do have some options available.

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Has anyone ever thought offering bonds as payment for big debts like this. Might be a stupid idea, and I've never done it, but say you owe $17,000 like the OP above; Purchase, say 20K in bonds (zero coupon) for 4 or 5K and offer the 20K bond as payment. Would anyone go for that?

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1. Try and settle for 25% to 30%. They should view this as a "Gift from the Gods", especially if they paid 1-2 cents on the dollar or less.

2. Get it in writing.

3. Send them a money offer.

4. Document, document. Do a search for debt settlement letters on this site. They are all over the place.

5. It will be tougher for you to get a low settlement offer on the judgement, they know they have you over a barrel on this one. (Can you get it vacated?)

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There has to be a legitimate reason for getting a judgment vacated...such reasons as if you were never properly served (assuming your state requires proof of service), maybe you were sued in the wrong venue, etc.

Keep in mind that getting a judgment vacated doesn't mean they can't come back, correct any mistakes and get a new judgment.

At any rate, this is an issue you would need an attorney's help with I suspect and it isn't sometning that's going to be done in a week's time.

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Good point, Admin. I didn't even consider that a JDB was involved.

For that reason alone, even though Admin and Robert are correct in regards to the judgment, the important thing to remember is all they can say is no.

As was mentioned, you always offer low as they will definitely counter higher, such as, you offer the $.30, they counter with at least $.70. Then you counter back at $.40 and stress this is your maximum. Just be sure to sit down and look at the whole of your position before offering as you want to know exactly what you can do and live properly, not payday to payday. Otherwise you end up reneging, which will allow them to legally collect the remaining balance, including more interest. In short, add in at least $150 a month to cover unexpected things, such as your needing a new tire. Then, if you don't need it, apply it to where it will do the most good, including stashing some in your drawer, not a bank.

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On the first one of 17K we've negotiated 40%... not bad and they said they would fax me the offer... but they want me to give them a post dated check by phone.... Is this good? doesn't sound it, but they said that is the only way they will accept this... what do I do?

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Hi there,

I'm still learning about settling myself, but I had a few questions for you.

1. If they're settling for 40% of the balance of 17,000 does that leave you receiving a 1099 this next year to pay taxes on as a "forgiven" amount?

2. Have they promised to send you a letter stating that this account will be "paid in full" and "closed" upon receipt of payment?

Just wondering. So far, I haven't gotten anyone to "settle" with me and I don't owe anything near 17,000. One is for an old VET bill for pete's sake. I'll keep at it though.


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Here is the letter they just faxed:

Qn behalf of our client, Chase Bank USA, N.A,

capital Management services, Inc. is willing to accept less than the full

balance due as a settlement on the above mentioned account. The settlement

offer shall be $7,004.54 due in our office no later than 09/25/06.

You way remit these settlement payments to capital Management Services, Inc.

726 Exchange St. suite 700, Buffalo, New york 14210 or call

*l-8o0-xxx for other payment options.

Upon clearance of sufficient funds, our records will be updated to reflect

that the above account has been satisfied-

This is an attempt to collect a debt; any information obtained will be

used for that purpose. This communication is from a debt collector.

Important information may be found on the back of this letter. We are

required under state law to notify consumers of the following rights.

This list does not contain a complete list of the rights consumers have

under state and federal law.

The Satisfied part is what worries me, Should I ignor this fax and send them an offer to settle letter?

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