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AM I DELUSIONAL? need reality check on this Debt settle vs BK7 strategy


slavenomore
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Thank you for your patience, between the hospitals, and the financial hardships, I am doing my best. 
 

I am having trouble thinking clearly. Beginning to question if my plans are delusional. 

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BACK STORY
Lost 4 people in 3 years, Mom, Grandma, Grandpa, Brother in law, Plus I am the primary care giver for GF on chemo feeding tubes./ dad in hospital often. 
Lost 30% of clients in recession, plus was in the hospital 60% of my time. 
Credit: perfect credit for 17 years. Never even late on a payment. FICO 750 all CRAs. 
UNTIL: Chase changed 7% fixed to 12% variable, then cut 10K off credit limit
fought that with executive disputes/ then they cut 26k MORE off credit limit/ fought that/ then they cut 12K MORE off credit limit, lowered FICO and raised APR to 24%
fought it all the way to the ATT GEN office. LOST CASE. I could still file civil suit. Then Other CC Cut CL too. FICO/APR spiral of death. 
Started to see I cant win at this. Its a rigged game. Started to consider a strategic default / stopped paying one year ago. Had to pick my health insurance over CC. 

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TOTAL DEBT: 78k debt

5k IRS
2K medical
44K creditor 1
17 K creditor 2
10 k creditor 3
( I have no assets and an income that qualifys for the means test if i decide to BK7)

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CURRENT: 
1) Made deal with IRS for monthly payments
2) Creditor 1 offered me 30% ( 9K cash) / I dindnt have it./ wrote them 2 certified letters asking for better offer. I CURRENT: HAVE NOT HEARD FROM THEM. 
3) Creditor 2 offered me 40% (6k cash)/ I didnt have it / wroth then certified letter asking for better offer. CURRENT: FILED AGIANST ME FOR 17K SUIT: NOT SERVED YET. 
4) Creditor 3 I kept paying as they are my bank and to switch that would be hard, also If i can settle i would still have some credit. 
5) havent heard from medical. 

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INTENDED RESULT: 

1) To settle for 20% or less with OC,( or if he would give it to a JDB) for creditor 1, 
2) To settle for 20% or less with OC ( or if he would give it to a JDB) for creditor 2
3) To file insolvency to delete 1099's for taxes of forgiven debt. 
4) To not go BK because of HUGE PERSONAL fear of what would happen if I had a serious medical crisis AFTER you already went BK7.
and you already dropped your one nuke. and then are at the mercy of the the system even with insurance. 
(this is currently going on with my GF, No one can pay even 20% of 174K medical bills. like my gf has to). 
I am terrified of this as (I saw my mom die on medicaid because of bad medical care, and she couldn't afford better doctors, it was just awful.) 

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GETTING INTO REALITY QUESTIONS: 

1) What is the likely hood of me settling with the OC lawyer of creditor (or if he would give it to a JDB) for 20% or less? (on a scale of 1-100%) 

On what do you base this please? 

2) In your expert opinion, Is my strategy to settle, rather than go BK, unlikely or impossible to happen? 
If so why, please help me understand. 

3) Given my current situation, what are my real options besides Bk 7 ? 

4) IF YOU WERE IN THIS EXACT SITUATION with my same fears, what would you do? 

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All tips, wisdom, links, and constructive advice most welcome.

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Sorry about your medical problems...but your creditors aren't going to care.  I'd suggest you talk with a couple of BK lawyers and see exactly what your options are.

 

BK probably won't make the IRS go away, but there are options.  If you do have insurance for your medical problems, you may be able to work something out.  BK won't get you canceled.

 

If creditors 2,3, and 4 are unsecured...Bk will make them go away.

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Have you tried asking the hospital to write off some or all of the medical debt for you both.

I would wait as long as can you can to file BK7 just in case you get sick again.

Keep paying irs.

I would not pay the banks unless paid in full, it really would not do you any good to pay them a partial payment(wont help your credit at all).

Save up enough to file the bankruptcy and just wait till you absolutely have to file. The unsecured debt would be removed.

Never think you cant win, Things get bad in a hurry sometimes but somehow we manage to find our way out of the mess we have. Always believe that something wonderful will happen your way. Winning is you taking care of yourself,girlfriend,and your father. Thats a lot for one person to handle. I know you will do your best and make those hard decisions that will have to be made when it is time to make them. Don't be afraid to seek out help if you need it. If you have to walk in to SRS and ask for help taking care of your loved ones do it. Dont let pride hold you back for asking for help. Wish you the best of luck.

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I want to thank you for all replys, and your thoughtful kind comments.  they give me hope. 

 

I feel like i am coming to the end game here. 

 

I just need so guidance on what the final plays should be..  specifically: 

 

1) What is the likely hood of me settling with the OC lawyer of creditor (or if he would give it to a JDB) for 20% or less? (on a scale of 1-100%) 

On what do you base this please? 

2) In your expert opinion, Is my strategy to settle, rather than go BK, unlikely or impossible to happen? 
If so why, please help me understand. 

3) Given my current situation, what are my real options besides Bk 7 ? 

4) IF YOU WERE IN THIS EXACT SITUATION with my same fears, what would you do? 

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1.  Depends on who owns the debt.  If its the OC, depends on the OC.  Most CC might...repeat...might go for 30-50% (depends on how much is  "charged" and how much is "fees").  If its owned by a JDB, pay them nothing.  Make them prove in court they have the right to collect.  There's a very good chance (80% at least) they won't have the proof.  (NOTE:  CAs don't buy debts...they just handle the hassling.  Don't pay them either...you cannot trust them).

 

2.Your strategy is unneccesary.  File BK.

 

3.None.

 

4.  As Racecar said, you can try the "bury your head in the sand" approach...pay the IRS...let the rest slide until somebody sues and then file BK.

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