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Debt Settlement Strategy. Legal Opinions?


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Hello. First post, but I use information on this board quite frequently.

As a precursor, my business partner and I have undergone a large business failure, to the tune of roughly $1.8m of secure and unsecured debt. We aggressively engaged and reached a manageable settlement with our business lender, which constitutes about 75% of our total debt, but the remaining 25% is still in the TBD stage.

Thus far, we've represented ourselves in eleven summons/suits, and we've managed to only incur one judgment of $15k. The others have either been dismissed, or sit in limbo because the cost/benefit analysis for the Plaintiff(s) does not make it worth continuing to pursue a judgment against us. Our good fortune, it would seem, is that with these types of business debts an above-board, $300 per hour law firm is used, rather than the Phillips and Cohen's of the world.

I post the above to say thanks, as we both have gleaned many things from here and have put them to use in filings and in the courtroom.

Here's my scenario and question (this is second-hand information, which is why I ask here):

I've read here that CC companies use a person's actual use of the card as proof of acceptance of their CC agreement. There is case law that substantiates this fact.

A friend told me that her friend (I hate saying that phrase) sent a settlement check, via certified mail, with clear and explicit instructions in a letter and on the check, that if they cash (use) the check, all debts due and owing by the debtor are settled. Essentially, words to that effect.

Would this stand up legally if the CC company were to pursue the balance and challenge the validity? The general idea would be to send them an amount of roughly $0.05 on the dollar and see what happens, but I don't want to do this if it wouldn't stand up if challenged.

Sounds too good to be true, but if there is case law that upholds "use" as being enough to hold water for the Plaintiff, why wouldn't the same hold true for the Defendant?

Thanks in advance for any opinions. We've let some of our business debt bleed onto our personal credit cards in an effort to salvage our business, so that's why I'm curious.

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RE checks (restrictive endorsements) are a tough one - some say they're legal, some say not. The ONLY definitive answer regarding their effectiveness in YOUR case is with your corporate attorney.

regarding "use" - it's usually printed on the card, as well as every receipt you sign - words to the effect of "by signing this, I agree to the terms and conditions of the written CC agreement"

Also, since this is a business debt, the FDCPA will NOT apply to you.

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