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curious, low settlement on high balance...


ibreathein
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if a cc comapny offers you a really good settlement in my case 6000 of 26000, does that mean the likely hood of them taking me to court is small if i refuse to settle?

i told them the main reasons for my debt was mental health problems, would that be why becuase they think they would not win judgement in court? im just curious why i got offered such a low settlement. what are the deciding factors?

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Really difficult to answer.

First, are you sure its the CC and not some junk debt buyer or colllection agency. You don't owe a JDB anything, and they're likely to just shoot for what they think they can get. If its a CA, you have no way of knowing if they're speaking on behalf of the OC, or just trolling for dollars which they'll keep and you'll still owe the OC.

If it is the OC, then maybe they've checked your credit reports...noticed that you don't appear to have a source of income...and are again, shooting for getting at least a peice of what you owe before you file BK.

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it is deffinatly b of a. its going to be charged off the 31st if i dont settle before then. im still in the air on weather to settle or to file br. im going to set up a free consult this week.

obviously id rather take a br then settle, my credit is in the ****ter anyway. thats only one card i have another high balance one with chase that isnt bowing down so low...

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Well, charge off is really a non-event as far as you're concerned. It only means they're transferring it from one column to another on their books. They use CO as a "man, you better settle before this happens because then you're going to be sorry" kind of threat. It's not.

If you have the money, you might think about settling. You need to be very careful to get it in writing BEFORE you send money...and stipulate that they won't sell the balance. (You'll have to pay income tax on the difference, but, if I remember right, you have some problems there anyway).

Its wise to go talk with a BK lawyer or two...see what your options are.

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They have likely looked at your credit reports; that plus the info you have given them probably makes them think you are a potential bankruptcy (maybe even a 7), which will mean that they get nada. That is a decent offer for BOA, but if you can't pay it or deal with the tax consequences...

By the way, they usually highball the first offer. If you plan to settle, you have a little time to negotiate. Call and tell BOA that you can't pay more than $3000. They might offer to stetch out the payment plan and settle for less than $6000.

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