Trying to Settle Accounts

We are trying to settle our credit card accounts and have a certain amount of cash to do it. It’s about 25% of the total we owe. If we can’t settle the accounts, we will almost have to file BK, which we really don’t want to do.

I have explained this to the creditors but they don’t want to reduce the amount to what we can pay. It doesn’t make any sense to me why they would prefer to get $0 if we file BK instead of taking the 25% and run with it!

Any thoughts on your own experiences?

YA.. LOTS. They have more then likely already written it off and gotten a tax break. They wont reason with you. I was at this point before BK and most recently had to let a debt go to “charge off”. I tried and I made payments but they charged it off anyway. They really would rather have the tax break.

BK is’nt as bad as its made out to be. I filed chpater 10 nearly 10 years ago and its going to fall off of my credit report in the next coming months. The minute I filed it was like my slate was wiped clean and all of a sudden I had predatory lenders seeking me out all over the place. I could have purchased/financed vehicles, I did get some credit cards and two years later I got mortgages. Contrary to how its made to sound…

lenders like BK because if you file bk-chapter 7 specifically you cant file it again for a certain amount of time. If they can rope you into debt after the fact.. you are sunk and stuck owing that debt because your only option is to file chap. 13 which involves repayment. I was always astonished that credit lenders would not deal and instead will force you into delinquency first before they will deal with you. If they force you into that then you might as well file BK and they can just go without. Its a game.

You did what you could on your own and now you need to get professinal help. I’ve been there, done that, and now I’m ready to move on.

Just a few days ago, my bk attorney settled my brother’s four charged-off accounts over $20,000 (all credit card debt) for $11,000 only and my brother now does not have to file bk. Of course, besides his salary, he owned nothing…

Here’s what you need to know. Some creditors do the math to figure out how much assets you own and sometimes they don’t want you to file bk so they can go after your assets to get a larger payoff amount from you. Remember, the creditors don’t care how long you take to pay the debt off. They just want you in their nest forever so they can get your interest payments.

You need to consult your situation with a BK laywer. Trust me, it’s different when the creditors get a call from a BK lawyer. Hey, I know… lawyers, doctors, insurance agents stink… but you have to go with one this time. They can settle your accounts for half if you go with the right one. C’mon 25% is unrealistic…

Good luck…