CFPWNY

Need advice on how to handle debt settlement offer

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1.  Trade line removal

2.  No 1099

3.  Settlement is final, can not sell to any other jdb period.

 

Chances are you will not pay this without missing payments and I mean no disrespect but something will happen and it will cause you to miss a payment (car break down, sickness, job loss).  

 

The agreement will be in the favor of the jdb it most of the time is.  Can you pay a consumer lawyer to help you and make offer to them for you?  It's amazing what can happen when you have a lawyer on your side (trust me on this and no I can't talk about it).

 

And if worse comes to worse tell them here is my offer and if you don't like it I just might have to declare Bankruptcy.  That's the nuke option.

 

Also one other thing.  Personally I would not pay them.  But that's me.  Can you afford to pay them?  Is there a point to you wanting to pay them ( you plan to buy a home, a car or you just want this off your chest to fell better).  Can they get anything from you if they do sue you?

 

Best of luck.

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Well up until this particular issue my credit was impeccable (around 800). I already have a house, mortgage and auto payments are always 100% on-time, and I don't have any other revolving debt. The issue with this CC was entirely my decision -- the CC was formerly owned by one huge bank and sold off to another. Shortly after the sell-off, my interest rate jumped so I sent the new CC holder a rather vent-induced letter demanding the APR be lowered back to where it was, or I was done paying the monthly on it. The APR was only lowered a by 1/2% so I stopped paying it. I knew that once the card went to a CA it would be a negative on my credit report, and figured it would get to this point where I could settle the debt and be done with it.

 

I have a close friend who is a prominent attorney in the area that specializes in many areas of practice, including consumer matters. However, I'd prefer to sort this out on my own and call on the attorney as a last resort if I don't have much luck negotiating with the CA directly. This forum appears to have a lot of knowledgeable members so I'm hoping to get as much info here as possible before pursuing this any further. I don't exactly have the settlement funds sitting around the home but could work out a lump sum payment if the CA was willing to negotiate the settlement down to around 20-25%. I don't have any immediate needs for a loan but don't want a negative credit score weighing me down in the event that I do need a loan for an auto, or perhaps decide to refinance my mortgage to a 15-yr in a few years.

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I have a close friend who is a prominent attorney in the area that specializes in many areas of practice, including consumer matters. However, I'd prefer to sort this out on my own and call on the attorney as a last resort if I don't have much luck negotiating with the CA directly. This forum appears to have a lot of knowledgeable members so I'm hoping to get as much info here as possible before pursuing this any further. I don't exactly have the settlement funds sitting around the home but could work out a lump sum payment if the CA was willing to negotiate the settlement down to around 20-25%. I don't have any immediate needs for a loan but don't want a negative credit score weighing me down in the event that I do need a loan for an auto, or perhaps decide to refinance my mortgage to a 15-yr in a few years.

Get your friend to write the settlement letter.  You can dictate, it will just be nice to see it on Lawyer letterhead.  

 

25% lump sum they should take.  

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The more I think about it, the more I am starting to consider just letting them sue me. After speaking with the close friend who is an attorney, he was tossing around Ch. 13. My wife and I make a good deal of combined income, so Ch. 13 probably wouldn't help us too much other than put our spending under a microscope.

 

After reading posts of experiences of others on this forum, coupled with the fact that I am planning on law school in a few years (I want to shift from being an IT professional to a career in law), I may be able to use this as a learning experience. If these JDB's can be beaten in Court, I wouldn't mind some litigation experience, especially if there's a high probability of victory.

 

Thoughts?

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The more I think about it, the more I am starting to consider just letting them sue me. After speaking with the close friend who is an attorney, he was tossing around Ch. 13. My wife and I make a good deal of combined income, so Ch. 13 probably wouldn't help us too much other than put our spending under a microscope.

 

After reading posts of experiences of others on this forum, coupled with the fact that I am planning on law school in a few years (I want to shift from being an IT professional to a career in law), I may be able to use this as a learning experience. If these JDB's can be beaten in Court, I wouldn't mind some litigation experience, especially if there's a high probability of victory.

 

Thoughts?

@CFPWNY - People have had good experiences here, but some people lose, too.  It's up to you what you want to do, but it could be an expensive law lesson.  

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As much as I'd like to stick around and fight the JDB in Court, there aren't any guarantees in the legal world so I'd rather avoid rolling the dice. If I can haggle with the JDB and have the debt resolved, I'd rather go that route than receive a summons for a Court appearance.

While negotiating I would want to make it clear to the adverse party that I admit to owing them nothing and am merely considering making the issue go away (assuming reasonable terms) without the expense of litigating the matter and having to front the cost of an attorney to prove to the court that I owe them nothing.

 

Negotiation is about leverage. I am not a proponent of bluffing. I'd be looking at what I can bring to the table to increase my adversary's pain and/or risk. Lacking leverage I believe the size of the check I must write will likely increase to move toward a settlement.

 

The more I think about it, the more I am starting to consider just letting them sue me. After speaking with the close friend who is an attorney, he was tossing around Ch. 13. My wife and I make a good deal of combined income, so Ch. 13 probably wouldn't help us too much other than put our spending under a microscope.

 

After reading posts of experiences of others on this forum, coupled with the fact that I am planning on law school in a few years (I want to shift from being an IT professional to a career in law), I may be able to use this as a learning experience. If these JDB's can be beaten in Court, I wouldn't mind some litigation experience, especially if there's a high probability of victory.

 

Thoughts?

If it is "me" there is likely a "probability of victory". No guarantees mind you.

Not because it is easy or I am brilliant but because:

I have nothing to lose;

I won't stop until I win;

I will make an appealable trial court record;

I will hammer all of opposing's weaknesses such as missing elements in their causes of action; and

etc.

 

My biggest advantage is nothing to lose. It doesn't mean I am fearless or invincible but it removes the nagging questions that can distract and weaken one's self-confidence. Questions like whether the risks are too high and what will happen if I lose. With those off the table I can focus clearly on grinding opposing counsel down until they surrender or the court agrees with my view.

 

JDBs pay 5% for alleged debt. At 10% they almost double their money assuming early acceptance of that amount. I have some idea of how I would negotiate with them if I determined it wasn't worth my trouble to litigate. If the collection of a judgment was scary to my income and asset exposure I would obviously be increasing that percentage to protect my flank.

 

Individual situations all vary. I'd estimate the worst case scenario of losing and if that doesn't keep me awake nights I would proceed with caution and develop a game plan that takes time, resources, educational value, and risk tolerance into account.

 

If litigation is to be my chosen path I think it would be wise to sit in on some court proceedings that are similar to the suit I am likely to face. Reading about a lawsuit and being in one are night and day experiences IMO. I would also want to know the cases opposing counsel has lost and why they lost them. I would want to know whether the court where the suit is likely to be filed has a habit of mowing down self-represented consumers in favor of JDBs or OCs. Perhaps my odds of success go up significantly in my court if I have legal representation.

 

From my experience litigation is a lot of hard work for a self-represented. I litigate because I am sued or abused. If persons cease those actions against me then my interest in participating in ligation would decrease significantly.

 

I understand the Credit CARD Act of 2009 placed limits on increasing interest rates retroactively on existing balances. If that happened to me I would want to review whether there was a violation of the Act and what, if any, implications that might have.

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