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Settle or not to settle?


daddyo74
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Hello all.   I really could use some help on what my next move is.   I appreciate any and all responses.  

 

Backstory:

In 2010 I took out almost 80k in loans for a small business (I did not do this right, I loaned the money to a friend)  I had stellar credit and a job making over six figures at this time.    Fast forward six months later and my friend has paid me back 30k of the money owed but suddenly dies in a car accident.    At this same point in time I lose my job and remain unemployed for almost a year.  I have no record that I loaned the money (it was interest free cash advance)  and I was not on good terms with his widow.   I was out the money.       I should have filed chapter 7--I did not.

 

Here is my current situation:

Last payment was Nov of 2011 on all accounts.  The SOL in my state is 6 years. 

 

BOA:

18k

1700 dollars   (sold to PRA, I belive I have them beat in court, this is the only creditor that has sued) 

 

US Bank

20k 

 

Chase

20k       Chase has sent me a 1099C saying they will not collect this debt, I plan to pay the taxes owed on it. 

 

I am VERY comfortable (with the help of this forum) to appear in court and fight these battles.     I do not care about buying a house or car.   I own a car outright.   My house is worth 110 thousane, I owe around 88k on it.   I have 6 grand in savings right now for an emergency fund.   

 

My question is: Should I continue to ignore these guys (SOL is up in two years)  or if I would be better served with a settlement of some kind?   I want to get back to having good credit, but truthfully I pay cash for most things now and am more than comfortable waiting it out.    Thanks!

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If you are involved with litigation get that cash out of the bank before any judgment happens.  Put it on a pre-paid card where they cannot locate it easily.  The last thing you want a bottom feeder like PRA to do is clean out your savings in a bank levy.

 

If no one else is threatening you from US Bank I would be inclined to see if I could ride it out to the SOL passing.  If they do sue you can always settle before court.  It all depends on how much on the edge you want to live.

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If you are involved with litigation get that cash out of the bank before any judgment happens.  Put it on a pre-paid card where they cannot locate it easily.  The last thing you want a bottom feeder like PRA to do is clean out your savings in a bank levy.

 

If no one else is threatening you from US Bank I would be inclined to see if I could ride it out to the SOL passing.  If they do sue you can always settle before court.  It all depends on how much on the edge you want to live.

Only one account with PRA (for $1700) is being pursued and I believe I have them beat.   They just stopped responding and dropped it, no court date set.     The other have not sued and don't show any signs of it so far.   I am actually considering rolling some of this money over into a SEP then 401K which is both judgement and bankruptcy proof.

 

Thanks for the response, I kind of like playing the waiting game with them but also don't want to press my luck on losing a big judgement.    Your right, if I think they have a case I would just settle, but then the whole 1099C thing comes up and I am back to paying full amount.   I am not looking to settle with a junk debt buyer--all the OC's are out of the picture.  The way I look at it is that the JDB I don't owe a penny to. 

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