Jump to content

I'm New--What is the truth with DIY debt settlement


mrfedup
 Share

Recommended Posts

I have been reading this foroum for approximately 4 weeks. I am getting mixed signals about DIY debt settlement. I have read settlements in the 15 to 50% range and then another thread states credit card companies won't settle and will sue you anyway.

I have a BofA at 12K 90+ days old

Two Capital One accounts each at 5k each. 120+ days old

Chase at 11K 90+ days

I have some limited funds available. Any chance the threads stating you will be sued are credit card companies, lawyers and plain idiots?

Any suggestions.

Link to comment
Share on other sites

It's highly unlikely that a major CC carrier is going to settle for much less than the full or nearly full amount of debts that aren't that old and are fairly large amounts of money...of course you can always try but I have to wonder (and it's none of my business); but if you didn't have the money to keep up the payments where will the money come from to settle $22large worth of debt???

Generally speaking, the older the debt the more likely they are to settle and the less they'll settle for but I suggest that you get ready to be sued by one or both creditors unless you can being these accounts current.

Link to comment
Share on other sites

I have been reading this foroum for approximately 4 weeks. I am getting mixed signals about DIY debt settlement. I have read settlements in the 15 to 50% range and then another thread states credit card companies won't settle and will sue you anyway.

I have a BofA at 12K 90+ days old

Two Capital One accounts each at 5k each. 120+ days old

Chase at 11K 90+ days

I have some limited funds available. Any chance the threads stating you will be sued are credit card companies, lawyers and plain idiots?

Any suggestions.

Go through your court's dockets and see for yourself what is going on. Then decide for yourself whether or not you'll be sued.

Link to comment
Share on other sites

I am assuming that the debt you have put up is probly 50% or more of your annual income?

IF so this is how I would do things. I would wait to see if they sue, if they do I would file chapter 7. Keep the money you have in a fire proof box or something out of the banks as your backup for the chapter 7. I was in similar standpoint over now 8 years ago and guess what noone ever sued me :p.

edit

I don't think settling going to help you much as I am assuming you don't have enough to settle with all so , in my opinion your best to forget em all. Remember the banks got their bailout its time you get yours :p

Keep in mind

I'm not an attorney and I NEVER give legal advice. Everything I post is my own personal opinion based on what seems to make sense to me about the particular topic, so if you think you need an attorney or actual legal advice please contact; assistance@budhibbs.com to see if he can provide a referral to a consumer law professional in your area.

Link to comment
Share on other sites

"It's highly unlikely that a major CC carrier is going to settle for much less than the full or nearly full amount of debts that aren't that old and are fairly large amounts of money.."

Um....what? I know you have a lot of posts but I have to ask where your head is at with this one?

I settled nearly 30k from BoA at around 7500 at 180 days.

I was offered 55% from Cap one at around 180 days. Didnt take as was out of money from BoA.

Chase was paid off so no info on this creditors settlement habits.

Hope this real workd example helps

Link to comment
Share on other sites

The point is...whether (and when) a CC will settle for less than the full amount, is very hard to predict. It depends on many factors. What other assets or debts they can imply from your CRs....do you owe the prinicpal, or is it mostly interest and penalities...and most of all, what does THEIR current P&L look like (do they need to back out some accrued profit, or do they need more accrued income).

A debt fixer won't help...they have no more real answers to these questions than you do.

What you have to do is look at your own personal situation. Do you have income to feed and house your family. What's left? Can you handle the taxes associated with the found income? Is BK a better choice.

And...what worked for others has no bearing on what will work for you...unless you are in exactly the same situation at exactly the same time.

Link to comment
Share on other sites

Um....what? I know you have a lot of posts but I have to ask where your head is at with this one?

I settled nearly 30k from BoA at around 7500 at 180 days.

I was offered 55% from Cap one at around 180 days. Didnt take as was out of money from BoA.

Chase was paid off so no info on this creditors settlement habits.

Hope this real workd example helps

I'm glad it worked out for you but it doesn't always work out that way as willing pointed out. :)++

Link to comment
Share on other sites

Thanks to everyone that responded. I have a real world update. I spoke to Capital One this morning and they offered me a 20% reduction at this point. I cannot and would not settle at that amount, but at least the ice has been broken. I left that I would get back to them with a counter offer. If you remember I have two $5K cards with them.

I then spoke to Chase, they offered me a 25% reduction on a $11K balance. My response to them was the same as to Capital One. The supervisor who was very nice stated that they may be able to do a little better and would call me back. I have not heard anything yet.

B Of A was pleasent but was not willing to talk any type of settlement yet.

I will update this as this journey goes forward.

Link to comment
Share on other sites

Personally, I wait for it to go to a 3rd party collection agency, and when they violate one of the consumer protection acts (FDCPA, TCPA, etc.), and they always do, I go after them for it.

Personally, if I'm going to settle, I'd rather it involve them paying me rather than me paying them.

But that's just me... :mrgreen:

Link to comment
Share on other sites

Here's my few pennies worth.

It is true most CC's will not settle for less until at least 180 days, BUT, if a consumer sends a written offer of settlement prior to, there is no problem here, as posted above being able to settle for less earlier. The whole of the matter depends on the consumer in how they respond, as well as how the CC responds. For example, the account is well seasoned, the consumer suffers a job loss or medical issue, and calls the CC before all goes bad. On occasion, a program can be worked out. On a newer account the possibility is not as good. BUT, if you ignore, for any reason, your chances for an amicable resolution is very poor, therefore, you would then play the game.

By waiting for the account to be charged off at 180 days, and assigned to a third party CA, or sold to a JDB, is not the best of plans, if you are wanting to pay the account off, as agreed. True, if you want to just walk away, sure, let it go. BUT, be prepared for the problems that will surely arise due to that decision. By this, if you are able to obtain a payment arrangement, you will only find the CC reporting on your CR, unless they agree to not report as long as you follow the plan. If it goes to a collector, you now have more reporting on the same account. Then, add the additional fees, etc., that they add, and guess, what? You now have a real mess to deal with. Yes, many times you do receive an offer of settlement, at a fair amount, but, again, look at all the other "stuff" involved. To include, to wait for assignement or sale, then try to nail for violations is not a good idea, especially if your goal is to avoid paying entirely. The goal when dealing with a CA/JDB/ATTY is to receive the best resolution for you, not them, nor the OC. By this, if they violate, you use it to offset the balance owed only, not an excuse to walk away. Do not misunderstand me, if it is a CA/JDB/ATTY who refuses to obey the laws, as written, then, absolutely, tell them where to place it. I am a firm believer in the verbiage of Spears v. Brennan, where the writer of the majority said "It does not matter that a debt be valid. What matters is how the debt is collected."

Also, if the claim was assigned to a third party, there is nothing wrong with your refusing to deal with them. By this, just send them a C&D telling them you will only deal with the OC, and, cannot be forced to do otherwise. I did it myself and never had a problem. If you do decide to do this, be sure and include in your letter that any further communications, as allowed by statute(s), from them must be in writing as no phone calls will be accepted.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.