Settling 74k in (mostly) CC debt

[womanonfire]

After much deliberation with my husband and several bankruptcy attorneys and based on my unique circumstances, I've decided that it's going to be in my best interest to try and settle the debt I owe. I've never been in this much debt before; it's really overwhelming. I've literally scoured this site looking for nuggets that might help me and for that reason, I'm sharing my experience in hopes that it can help others. 

I have around 60k of personal unsecured CC debit. All this is charged off except for Amex which is very close to CO, a very small Chase balance and a Synchrony store card that is closed but showing paid as agreed. Then I have a business card from Citi and a Webbank business loan for close to 10k. The business was sold a couple of years ago at a loss. I own a home and there is a lot of equity there but no one will cash out refi. Finally, I have some very recent medical bills. All combined it is just under 74k. This is excluding around 25k of joint debt to the IRS. The IRS payment is current.  

I've decided not to send DV letters to the CAs or any letters for that matter and will start negotiations on the phone instead. However for those that have sent dunning letters and who are less than willing to negotiate and seem to want to take their chances in court, then I'll just call them on the 30th day and dispute over the phone to buy time. 

Settlements so far and balances are approximate. 

Amex - $1900 - Settled for 30% 

BOA - $8300 - Was sued and settled for 50% 

Chase Amzn - $1200 - Settled at 36% 

Citi - $2500 - Settled 45%

Citi HD - $4000- Settled 45% 

Citi OD - $1500 - Biz debt - Settled at 35% 

Discover - $3500 - Settled 35% 

Synchrony HD - $4500 - This was at the same firm as my BOA and they said they would sue if not paid by end of Feb. Settled 60%  

Synchrony Paypal Credit - $3446 - 35.5% 

 

[womanonfire]

Just updated settlements so far. I have three Cap One cards remaining; one I've posted about elsewhere that I may fight if sued. I've tried to settle it but they will not budge below 75% and I don't have it right now. Another one is a very low balance and the other one I also think I have a TCPA counter suit and an attorney that reviewed it agrees. I will never give Cap One my business again because even though I defaulted, their customer service over all even before then was severely lacking. The balances on these are $4500, $350, and $2000 respectively. 

Also remaining are seven Synchrony store cards with balances totaling $25000. I've not tried to settle these yet as I am saving up some money and I was kind of hoping they would sell off to a JBD and I could settle at rock bottom prices using that arb angle. Greedy sounding I know lol. 

Next up is a Chase card with a $500 balance and a Comenity Card with $1500 which has been sold to a JBD. Chase wouldn't settle for less than 70% and it wasn't CO yet. I also revoked permission to call my cell on the settlement call, recorded it, and they are still calling. Have not attempted to settle the other. 

Lastly, there is a Paypal business loan that seems to be lost. I had an old letter from a CA, called them, they had sent back to PP, called PP who gave me name of new CA who I called and they said it was sent back to PP who I called again and they said they definitely didn't have it. The recent CA said it looked like there was a note about pending litigation on it but didn't know any more than that and she also said that they NEVER settle. Backstory on this loan was that it was taken out by my husband/biz partner without my consent, long story but I was suffering from depression and had checked out and that is part of the reason that I'm in this mess. Sticky situation but I may fight it to see if I can have the personal guarantee switched over to him if they sue. 

[womanonfire]

Updated the original post to add Synchrony Paypal Credit. I went ahead and settled this one because it seems they are bringing more and more lawsuits themselves over this account in particular or least according to these boards. However they sold Paypal MC to PRA. I sent them an email dispute to let them know that I am aware of the arbitration clause and if they bring suit, it will eat into their profits and didn't hear back. Chatted with them online which was fruitless. PRA is going to be greedy I can tell. I will file BK on their asses as it is unclear at this time whether I can still avoid BK over all. 

 

 

[BackFromTheDebt]

I am a bit unsure of your strategy. 
 

Is your strategy to declare BK now, or hold that in reserve if you can’t get a settlement or a walk away with arbitration?

I personally held BK in reserve.  Things were different then, and the creditors and their collectors made a ton of mistakes nobody makes anymore, so I was able to avoid BK even though I faced the most feared creditors.  
 

YMMV.  We all need to decide when the struggle is no longer worth it and when BK is an attractive option. For some it is day one. For others it never happens.