shoeguy

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Hi all,

I've been lurking for a little while to try and gain knowledge on the road I have ahead of me. Scared as heck but what doesn't kill you make you grow...right?

Little background: got divorced last year. Took most of the marital debt becasue I was the major bread winner. Was able to buy a HUD house but had to put more money into it to get it livable. Basically I've hemoriged money for about 18 months and now I'm at the end of the line. thought I could make it until some of the Child support was up but that is 2 yrs away.

I'm current on my debt and have been shuffling it around to consolidate and get zero % but now mins are difficult to make. I've decided my credit score is less important than my sanity so this month I decided to not pay two of my minimums.

Debt is:

$25000 Chase

$12500 Citi

$3500 Credit union loan

$1200 HSBC

$1000 Lowes

My plan is to take the min payment from Chase and Citi and pay off the HSBC and Lowes in a couple months. Then try and settle with Chase and Citi

I have access to $12000 if I borrow from 401K. I'm ok with that just to resolve this. I realize it is only $32% of the payoff for Chase and Citi. I don't have any clue if I can pull it off nor how. But getting ideas and guidance from this site which I think is wonderful.

Questions:

1) Does it make sense to stop paying on multiple accounts or try and keep most current while trying to settle other accounts.

2) Do I contact Chase and Citi now or let them contact me because I'm not paying?

3) probably stupid but...does it help my CS if I pay off as many as possible or is it going to be so low it doesn't matter and I should stop paying the others as well?

4) Thought I'd leave the CU loan alone and keep paying so I hoipefully keep that relationship in tact. Stupid?

I've always been one to try and protect my CS but now I just want to start the clock on cleaning up my debt issues. Kind of like going to the principles office to accept your paddling for something you are about to do. LOL hopefully you are old enough to remember when the schools could dish out discipline.

Any input would be great. I realize this road is one I travel by myself but would be nice to know someone was there to at least bounce ideas off of.

Take care.

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Forget your CS...you don't need to worry about that right now.

Chase and City are likely to get pretty agressive quickly for that amount of money. Expect to get sued within 6 months.

Although, in general, borrowing on your 401k is not a good idea, I'd suggest take the 12k...pay off and close the others, and divide whatever is left between chase and city. Then arrange your budget to pay more than the minimums on those two.

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Thanks Willing,

Maybe my approach should be modified. Little uneasy about being sued. Not sure why but I guess the fear of the unknown is a big part.

Half of my child support will stop in 2 yrs and that will generate another $600/month. I've read about hardship programs with credit cards. Maybe I should pursue that route before my relationship with the credit cards goes south.

I'm roughly $300 shy a month on my budget. I have already gone to CCCS and they helped me create that budget. I felt since I was $300 short there was no reason to pay CCCs an additional $35/month to handle my relationship with the credit cards.

Since I made the decision that my credit report was not a big concern I started thinking settlements would be the next order. Maybe there are more avenues to take a look at before flushing it. this site seems like a good resource of information and people.

Sucks that when I thought I was getting over the relationship drain of a divorce I just woke up to my financial mess. Time to climb that mountain I guess.

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You could try the "hardship departments" at chase and city...they may work with you, but usually their programs only run for a year at most...and if you miss a payment, they come down on you pretty quick.

You're wise to avoid CCCS. Using a third party sacrificies some of your rights, and only works if your creditors happen to subsidize CCCS.

I still think 12k sprread out like I described might get your total CC payments down $300/month....

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I'd be surprised if Citi and Chase will settle with you while you are current but it wouldn't hurt to ask. My experience (with Citi and Discover) was that they wanted everything (and all at once) until I was significantly delinquent (far more than 180 days) and even then they were only offering to take 75% of the balance. Of course, they would have been willing to make payment arrangements at any time if I could have managed it.

If you are able to get them to deal, make sure you get it in writing that they will report the account as paid in full so that you don't have a collection agency tracking you down for the unpaid balance. The other thing you want to keep in mind is that, if you can settle with Citi and Chase, you will likely get hit with a 1099-C for whatever amount they "forgive" so you may or may not have to declare that on your taxes.

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...from settling quite a bit on my own. Pretty similar total amount to yours as well by the way....

Questions:

1) Does it make sense to stop paying on multiple accounts or try and keep most current while trying to settle other accounts.--I stopped paying ALL accounts besides my very lowest ones. Which were very similar to your balances. Why? Couple of reasons. 1- It adds to your hardship story. I told them, "Look I cannot pay your balances because my my new financial hardship {INSERT HARDSHIP HERE}. I am only paying those low ones because the monthlies are so low and paying what I can is {THE RIGHT THING TO DO}". Yes this was BS but it added to the story. What you are attempting to do here is to create the fiction of someone who would LOVE to be able to pay but CANT. This paying only the lowest ones reinforces this fiction of WANT TO but CANT because you are at least paying someone something. WOrked great for me. THe whole thing was complete fabrication on my part but it worked.

2) Do I contact Chase and Citi now or let them contact me because I'm not paying?--Dont worry, they will contact you. Often. Very. Very. Often. Dont be afraid to pick up and tell them that yes you know you are behind for {THIS REASON} and you will contact them when/if you can make a payment. Dont be swayed from this. You will be tempted like me to just pay SOMETHING to get them to shut the F Up. Dont. This is nothing but counterproductive to your overall goal. Keep your eyes on the prize.

3) probably stupid but...does it help my CS if I pay off as many as possible or is it going to be so low it doesn't matter and I should stop paying the others as well?--As mentioned before, ignore your credit score for now. It will tank. Period. This is not a priority. Getting rid of the debt is and you can deal with the rest later, there are ways. Youre mileage may vary on paying any of them. AS I said I paid just the 2 smaller to try and create the fiction of being a "responsible person" who wants to "do the right thing". I probably would have been just as well off paying nothing but I went the route I went.

4) Thought I'd leave the CU loan alone and keep paying so I hopefully keep that relationship in tact. Stupid?- No not stupid. In any case even if you decide not to pay them they will most likely take what money they need from your account do to a "right of offset" (Google it) that nearly every deposit institution has buried in their fine print. If you DO decide to quit paying them I would empty and close that account immediately and dont deposit more in there. In fact I would not keep ANY money besides a bare minimum in any bank account while I was doing debt settlement. There are tales on several boards of peoples creditors telling them almost to the penny what they had in their bank account which completely called a lie to the hard luck financial hardship story they were selling their creditor to get them to settle. And from what I read it was not guesses, it was down to the nearest dollar of what was actually in the bank. Pull it out. Run on cash to the extent possible.

This post has gotten too long. I post another one for you with some very general stuff and my general story in case it helps you.

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Here is the general outline of what happened for you.

-08 during the housing crash most of my creditors jacked my rates to my states usury max. This made it for all practical purposes impossible for me to pay back my credit cards. Repeated calls and pleas to please return my rates to previous were snubbed. My citing that I was at the time a 20+ year perfect payer was scoffed at.

-2008 I decided to see what the consequences of not paying back credit card debt was. I began reading. Endless reading. Various boards, various financial sites. 4-6 hours a day at first of endless research on the subject. I talked to lawyers (bankruptcy, civil, just general joe blow lawyers). I talked to judges about the specifics of judgments, exemptions and executions. I perused my states legislature websites, I perused what free cases I could get from my state and my federal judicial district to find out what I would be up against if a lawsuit DID happen (which I assumed it would). I decided I was going to settle my credit cards using a "strategic default"

The problem was that quite a bit of this debt back then was "fresh" meaning it had been balance transferred from older cards or it was recent balance transfers done in the form of 'checks". This presented a problem in that sometimes cards are much more agressive on fresh debt being defaulted on and there have even been cases of people having criminal fraud if the debt they defaulting on was very fresh. In other words the card co can convince some judge that you never intended to pay it back at all.

So I bided my time, kept reading and kept paying for another almost 2 years and I added no new debt (very important) till I was ready. Fast forward

Jan 2010

1- I called the companies and begged them to change my rates (again). The result was predictible. I just wanted them to make a note in the file of this

2- For a couple of months I paid some but not others. For instance if I had 4 accounds 1-4 I paid 1 and 3 one month, 2 and 4 the next. Kept getting further behind (on purpose) this is to reinforce my supposed "desperation".

3- I defaulted on all of them except 2 extremely small ones. I put everything I used to pay to the cards in a safe. I didnt go out, I didnt eat out, I cancelled satellite, home phone, I scrimped and saved every thing dime it was possible to save. I was a monk, a hermit. I kept my eyes on the end goal And I sat back and waited. When the phone rang at first I picked it up every day, every call and answered every question (always keeping in mind the role I was portraying) (a desperate man with a conscience who really needs some help from the big old kind hearted bank to do the right thing). I would apologize profusely and tell them I would pay if I could but I cant.

4-More waiting. Every 30 days the accnt was passed to another department and the calls became sterner. The subtle threats began. I sounded scared (even though my research had told me exactly what could and could not happen to me if sued). I asked them to be more patient. I gave them examples of what I had changed about my budget to get it "under control". (all true but only to increase my settlement funds though dont tell them that). They began demanding any size payment just as a show of "good faith". I refused saying if I had any money to give them I would have. I can barely pay the basics of life to get to my job.

This part is very VERY important: At a certain point they will ask you very specific things about your budget. BE PREPARED. Have it ready as if you were thinking about it all the time. You have but not for THEIR benefit. I concocted a fictitious budget that left me after the basics of life that I could not avoid (power, lodging, auto expenses, food, insurance etc) only about 100 bucks. Be ready with your cooked up budget. THEIR JOB IS TO GET ANY MONEY OUT OF YOU. They will start being very flexible usually as to putting you on a hardship program or reducing your interest rate or even refinancing your current debt as a simple interest 5 or 6 year loan. All these were offered to me at about 4 months delinquent. I refused them all on the basis that I couldnt pay anything at all beyond the 100 bucks I mentioned above. Remember you are playing a role. Dont let them trip you up and invalidate your story.

5 Finally settlement talks began at about 4 and a half months. Serious settlement talks. You need to be able to tell them where you are getting settlement money and that THIS AMOUNT IS FIXED. I'm borrowing it from Aunt Edna and this is every penny she has shes trusting me with. Im getting a 401k loan and this is ALL that I have access to. This is key. You have suddenly at the last minute figured out how to save the situation if only they will forgive part of the loan. BUT this is the best you can do. The absolute very best. Period. They WILL try and push you for more, thats their job. YOUR job is to stick to your script as if it were 100% true and do not be moved.

End result for me. About 45k total debt in beginning. 30k was on ONE creditor so I decided to concentrate on that one and screw the rest for now. This creditor was also known as being a fairly easy settlement target so I got lucky. 30k was settled at 6 months for around 7500. This was every red cent I could save by the above means.

Of the rest (around 15K) has been charged off long ago and is now in the hands of junk debt buyers, except for the infamous Capital one. They have just passed it around to various CA's in the last 2 years.

Zero lawsuits as yet but I have about a year till the SOL in my state is up so I expect them any day now.

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Oh yeah. Forgot to mention how I incorporated Bankruptcy as part of my settlement talks.

Heres how it worked for me.

1- I learned everything that was practical to know about CH 7 bankruptcy. My state exemptions, what was likely to happen in my case.

2- I consulted with 3 diff attnys for Bankruptcy and learned even more.

I decided against it for my own personal case as was going to be complicated.

3- Very late in the process outlined above (about 3-4 months) I informed my creditors negotiators that I was still working to try and get something together to maybe avoid bankruptcy. I told them I had consulted a BK attny "in case as a last resort" I had to do a BK. I added some very specific pieces of information such as what I would qualify for a CH7 (I would) and that I would be able to keep x y and z (like Car, house, etc). This was to let them know I had very seriously researched BK but was holding off. I told them I "didnt think it was right not to at least TRY and pay your debts". Complete fiction but remember it is a fictitious character you are creating here to get what you need done ( a settlement).

YOU are a guy that is in trouble financially (youre not paying)

YOU are a guy that is serious about his finances (you know your budget in

detail, you know your expenses, you have cut costs where you could, you

are paying what you can.)

YOU are a guy that doesnt have a history of not paying. Youve always been on

time youve never declared BK before. Its just that recent life changes have

forced this. Have ready what these changes are. Make them plausible.

YOU are a guy that is trying to do the "right and moral thing" but you are out of

otions and thus, a settlement might be in the banks best interest.

YOU are a guy that has explored all his options such as Bankruptcy and would

like to avoid that distasteful option. (its really not that distasteful and

really a great solution for some people considering you will have no tax

liability on debt erased in bankruptcy, unlike settlement. The banks get

threatened with bankruptcy all the time. It means nothing to them. BUT

someone that has clearly researched BK is someone they know has that

option at any time and they have no control over it.

I'm convinced now this last step of talking about BK but not threatening them is what pushed them finally over the edge to get me the resukt that I wanted (a 25% settlement.

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Why not just file the applicable chapter of bk and be done with it?

That 401K is an exempt asset in bk meaning, creditors can't touch it. Your equity {if any} in your home is likely below your state exemption.

Also, debt discharged in bk isn't subject to a 1099C being issued while debt that is settled could have tax ramifications.

Walk away with zero debt and keep your assets. That's what I did. I filed on $71K worth of cc debt and emerged from bk with a net worth of $90K+. The equity in my home was exempt plus, I kept my IRA's and 401K. Two years from now when your CS obligatoion ends, you have even more free cashflow.

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Hi all,

I've been lurking for a little while to try and gain knowledge on the road I have ahead of me. Scared as heck but what doesn't kill you make you grow...right?

Little background: got divorced last year. Took most of the marital debt becasue I was the major bread winner. Was able to buy a HUD house but had to put more money into it to get it livable. Basically I've hemoriged money for about 18 months and now I'm at the end of the line. thought I could make it until some of the Child support was up but that is 2 yrs away.

I'm current on my debt and have been shuffling it around to consolidate and get zero % but now mins are difficult to make. I've decided my credit score is less important than my sanity so this month I decided to not pay two of my minimums.

Debt is:

$25000 Chase

$12500 Citi

$3500 Credit union loan

$1200 HSBC

$1000 Lowes

My plan is to take the min payment from Chase and Citi and pay off the HSBC and Lowes in a couple months. Then try and settle with Chase and Citi

I have access to $12000 if I borrow from 401K. I'm ok with that just to resolve this. I realize it is only $32% of the payoff for Chase and Citi. I don't have any clue if I can pull it off nor how. But getting ideas and guidance from this site which I think is wonderful.

Questions:

1) Does it make sense to stop paying on multiple accounts or try and keep most current while trying to settle other accounts.

2) Do I contact Chase and Citi now or let them contact me because I'm not paying?

3) probably stupid but...does it help my CS if I pay off as many as possible or is it going to be so low it doesn't matter and I should stop paying the others as well?

4) Thought I'd leave the CU loan alone and keep paying so I hoipefully keep that relationship in tact. Stupid?

I've always been one to try and protect my CS but now I just want to start the clock on cleaning up my debt issues. Kind of like going to the principles office to accept your paddling for something you are about to do. LOL hopefully you are old enough to remember when the schools could dish out discipline.

Any input would be great. I realize this road is one I travel by myself but would be nice to know someone was there to at least bounce ideas off of.

Take care.

I HAD A CREDIT CARD WITH WELLSFARGO AND I WAS CURRENT ON MY PAYMENTS GOT MORE THAN 4K IN FURNITURE 5 MONTHS DOWN THE ROAD I HAD A CAR ACCIDENT. NO MONEY FROM JOB SO NO MONEY TO PAY BILLS I WAS CONSIDERING BK BUT I CHOOSE TO CALL WELLSFARGO TOLD THEM MY SITUATION I WANTED TO PAY BUY I COULD NOT THEY HAVE TO HELP ME OR HAD TO FILE BK AS SOON AS A GET 1500 FOR AN ATTORNEY TO FILE BK THE SETTLE 4K FOR LESS 1500 TO BE EXACT IN THREE PAYMENTS THAT I MADE ON TIME WE BOTH REACH A RESOLUTION TO OUR PROBLEM

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It is nice to get such detailed responses and it gives me additional things to think about in going to tackle my issue.

I originally thought about BK but do not qualify for ch 7. That puts me into the Ch 13 with the repayment plan. So I figured that basically just gets the courts involved with my issue plus attorneys etc so have put that thought on the back burner. I may have to go that route eventually but thought it might be better to try and work some items out directly with the OC. Less people involved I hope.

I think I need to figure out how to tell my story. Bascially I got divorced over a year ago and have been under water ever since. The money I had in the bank is about dried up and since I'm underwater each month I have to decide where to spend my money. Nothing "Tragic" has happened recently like loss of job, medical problems or accident. I'm just at the end of the rope.

When talking to the OC how does that story sound on the other end of the line? My payment history shows current on all payments. During that time my balances increase because of paying around the minimums. Maybe they see that but I'm assuming they don't know or don't care. I'm assuming they don't care about me or my story they only want me to pay them the money. That makes perfect sense to me to be honest. I think that is the frame of mind I need to keep in when talking with them but will probably be difficult for me. Someone said it is a business deal now not personal.

Thanks for listening/responding.

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How do you know you don't qualify for a chapter 7?

If you just looked at your median income for the last 6 months that's just step 1. Until you fill out schedules I and J to determine if you have enough monthly disposable income you can't say with any certainity which which chapter you qualify for.

Most bk lawyers give a free or lowcost initial consultation. Speak with 2 or 3 and see what they suggest.

I've been hanging out on bk forums since 04 [i filed mine in 05} and I just hate to see someone tap an exempt asset like a 401K to pay unsecured debt. Can't tell you how many times I've seen that done and it just prolongs the envitable.

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Thanks for all the great advice unfortunately I found out I do not have access to the $12K I thought I would so now I need a plan b.

not sure what Plan B looks like. I'm starting to get calls daily from Chase and Citi but have not picked up the phone and they do not leave messages. I have about 2K in the bank which would pay the mins for a fews months but then I'm totally tapped out.

I'm going to give a BK lawyer a call and try to schedule an initial next Friday. I haven't called to discuss hardships with any crediters yet. I guess that is a must to do soon. Filing BK doesn't feel right to do but maybe it is inevitable and prolonging it doesn't make sense.

Any thoughts on my nexts steps?

thanks

Shoeguy

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What dates did you open the following accounts?

$25000 Chase

$12500 Citi

$3500 Credit union loan

$1200 HSBC

$1000 Lowes

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What dates did you open the following accounts?

$25000 Chase

$12500 Citi

$3500 Credit union loan

$1200 HSBC

$1000 Lowes

Chase at least 6 yrs

Citi at least 3 yrs

Creidt union. 9 month on the loan but member for 15 yrs

HSBC 5 yrs

Lowes at least 10 years

I have been with these companies for several years but since the divorce they have maxed on the Chase and Citi.

Does that usually make a difference?

Thanks

Shoeguy.

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Chase at least 6 yrs

Citi at least 3 yrs

Creidt union. 9 month on the loan but member for 15 yrs

HSBC 5 yrs

Lowes at least 10 years

I have been with these companies for several years but since the divorce they have maxed on the Chase and Citi.

Does that usually make a difference?

Thanks

Shoeguy.

If I knew I had to default on a card and I had the option of defaulting on a card that was governed by an agreement that had JAMS for arbitration, I would default on that card. In the end, it can get you into a position of having a better option for a settlement.

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Hi all,

I've been lurking for a little while to try and gain knowledge on the road I have ahead of me. Scared as heck but what doesn't kill you make you grow...right?

Little background: got divorced last year. Took most of the marital debt becasue I was the major bread winner. Was able to buy a HUD house but had to put more money into it to get it livable. Basically I've hemoriged money for about 18 months and now I'm at the end of the line. thought I could make it until some of the Child support was up but that is 2 yrs away.

I'm current on my debt and have been shuffling it around to consolidate and get zero % but now mins are difficult to make. I've decided my credit score is less important than my sanity so this month I decided to not pay two of my minimums.

Debt is:

$25000 Chase

$12500 Citi

$3500 Credit union loan

$1200 HSBC

$1000 Lowes

My plan is to take the min payment from Chase and Citi and pay off the HSBC and Lowes in a couple months. Then try and settle with Chase and Citi

I have access to $12000 if I borrow from 401K. I'm ok with that just to resolve this. I realize it is only $32% of the payoff for Chase and Citi. I don't have any clue if I can pull it off nor how. But getting ideas and guidance from this site which I think is wonderful.

Questions:

1) Does it make sense to stop paying on multiple accounts or try and keep most current while trying to settle other accounts.

2) Do I contact Chase and Citi now or let them contact me because I'm not paying?

3) probably stupid but...does it help my CS if I pay off as many as possible or is it going to be so low it doesn't matter and I should stop paying the others as well?

4) Thought I'd leave the CU loan alone and keep paying so I hoipefully keep that relationship in tact. Stupid?

I've always been one to try and protect my CS but now I just want to start the clock on cleaning up my debt issues. Kind of like going to the principles office to accept your paddling for something you are about to do. LOL hopefully you are old enough to remember when the schools could dish out discipline.

Any input would be great. I realize this road is one I travel by myself but would be nice to know someone was there to at least bounce ideas off of.

Take care.

can i tell you my story with wells fargo..?

I buy 4k worth of furniture. i was current until had a car accident and falled behind on my payments . i did a very crazy move since it was not in writting but I call them up and ask for help i said look I want to pay but i have no income and my only option is bk if i can come up with 1500 dlls for attorney to file bk on my behalf. but i want to do the right thing and pay but now i realize that that never will happend unless they work with me before i run out of money. so the offer me pay 3500. my answer was look i dont even have 1500 dlls so they drop to 2800 if i recall well i replay with my previous answer. so she puts me on hold and then when she came back she said my supervisior wants to know what can you do i said 1500 in 4 payments she answer we can do 1500 in 3 payments i said ok i will send first payment as soon as i received a letter from your office signed by your supervisor showing this agreement. I did receivexdancexd the letter showing the amount of the payments and the dates they want this payments to be made so i did and they forget me the other 2500 settle for less work for me i know I will received a 1099 c but paying taxes on 2500 is better than paying 2500 i that time i did not know i can do a pay to delete but know you do.

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I just got off the phone with Chase. My goal is to settle the $25K. I'm currently 51 days past due. I told them about my divorce and recently I got hit with a $3K medical bill for my kid.

I said I was interested in just trying to put the past behind me and try to settle the account because I'm currently $300 under water each month. I didn't have my budget in front of me so she suggested I call her back when I have figures. She wants to input income and then expenses that show on my credit report to see if the account is available for settlement and deosn't care about other living expenses like food. WTF

I'm told her I'd call her this afternoon but not sure how they determine "available for settlement". I'm assuming their other option is a judgement but not sure.

Now i'm questioning why I even called since only 51 days outstanding. I was able to secure funds for a settlement and hoping I haven't jumped the gun. I haven't deposited the funds into an account yet because I read somewhere they might have the ability to check my balance somehow.

I feel I'm rambling so will stop. Just wondering if you feel I made the wrong choice in calling them so early. Did I jump the gun and is there any benefit to trying to resolve for a settlement so quickly.

Thanks

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Personally I think meeting with a BK attorney is a good thing to find out exactly where you fall in all of this.

If I wasn't filing BK I'd stop payment on all of them at the same time, bank what I could for settling and not talk to the OC's again until 150 days past due. Your credit rating is going to be shot for a couple years for anything short of full payment

Speaking for myself I would not talk to any of the OC's more than one time to tell them that I am decimated fiancially and unable to make my payments.

At 150 days past due they get more agreeable to settle and 50% has been my experience and once I settled a 16,000.00 debt for 4k.

But these days they are more sue happy

after 180 days you will get collection calls and letters and within 12 months of stopping payment probably one or two lawsuits

THE GOOD NEWS IS YOU HAVE LOTS OF TIME TO READ THE FORUM and by doing so can figure out the best way to leverage yourself for the best deal

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So talked with the CC again today to talk about my current financials. Actual facts based on my credit report and paychecks is I have $300 left to pay for food and gas to get to work.

They talked about payment plans which I told them i couldn't afford and would rather settle. She told me they were at 90% and I said we were really far apart that I could only give $7K or 28%. She submitted while I was on the phone and they wouldn't budge due to my last charge was only 3 months ago.

We left it by saying we would talk in a few weeks. I guess it is a waiting game now.

Any input would be nice. I appreciate having a place to vent and learn about my options.

Shoeguy

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UPDATE:

I received a letter from Chase in the mail saying they would accept 64% payoff and I have until 11/1 to accept.

I have the cash to accept the offer but wondering if I hold tight until Jan 1 I might get a better deal plus the taxes would be due 4/2014.

I'm roughly 90 days past due right now. That would get me in the 150 days. From what i've read that is in danger zone of it being past to a CA which I would like to avoid.

Any opinions? Take to deal or sit tight?

Thanks

shoeguy

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I would sit tight.

Settlements these days dont seem to be what they were a year or two ago, it seem the creditors are raising their settlements across the board, but I think you could do better with Chase closer to Charge off and much better "if" you wait till after CO.

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I beleive I'll sit tight for a little more. Maybe I can hold off until Jan 1 and then the taxes on the settled amount will be due in 2014 instead of 2013.

Does anyone know Chase's charge off date? 150 or 180 days? I'd prefer to settle prior to them charging it off.

Thanks

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As a general rule, there is nothing magic about CO. It is only a book keeping term that means "charge against accrued income for P&L purposes". All they need do is move it from one bucket to another in their computer system. It does not make them more or less likely to settle.

If you've got a deal on the table...with the OC, and no CA involved...and you've got the money...get the details in writing, and take it.

Yes, you might save some money in taxes if you wait until Jan...but you might also get sued before then.

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Chase has not sued on a single account in over a year. Chase very quietly closed their in house legal network who handled 90% or more of their sued accounts. That $25,000 can be easily settled for $4250.00 in a quick call at 150-180 days delinquent to 800-848-1551. You will get someone at their Milan office. Hardship must sound severe. I'm not telling you to lie, I'm simply saying you shouldn't tell them anything other than you have nothing and no one to help. You have $4250.00 and that is it. Trust me, they will take it.

Citi, will send you an offer in the mail to settle for 35% at approx 150-210 days delinquent. If you receive nothing before 180, call 866-544-5501 and should be a piece of cake. Again, you have nothing more than $3125 (25%) which is a possibility depending on how well you stand your ground.

With 12k in your pocket, being sued is of no concern as Chase is 0% risk guaranteed and Citi will be settled prior to Charge off (180 days delinquent) as long as you monitor your mail and make sure you call before that 180 day mark.

Chase and Citi are not much of a threat any longer. If I were you, I would settle these accounts and pay down the small cards keeping them open to help rebuild your scores.

If you choose to settle, do not engage in conversation again until you have reached at least 150 days delinquent. You want to appear as though you have better things to worry about then your credit cards. They absolutely will not do anything for you until you are delinquent and nearing charge off. It will only hurt you by talking to them at this point.

I never offer information I am not 100% on.

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