negotiating with creditors

[havetodecide]

I am still thinking on what i should do. BK seems like is not an option for me anymore at the moment, i even had retained a lawyer. I got a new job and also doing lots of freelance work and this new job requires me to travel almost 100 miles a day since where i live is kind of far. I want to rent a place that is closer by my work but i need to clean my credit first.

I just called chase that i owe $1200.00 ( i know, not that much, will start with the little ones ) and they said they would settle for 60% and also that i would not be paying taxes since the remaining is under $600.00, i could have that paid as one lump sum or in 3 payments. just wondering if it is true about not paying taxes on that and also if anyone has any idea how long it would take to show on my credit report that i am back paying the cards.


Thanks

[demismom]

Yes, that's true about the $600, as long as it's under that, they don't have to report it and neither do you.

[sandhall]

normally takes 30 days to show but if you are doing a settlement for less than then it will show as a settlement payment of less then actual unless you can get a statement from them for payment made in full

[HHM]

Yes, it's true, if the amount of forgiven debt is $600 or less, you will not get a 1099 on that amount.

However, you need to analyze your situation in the big picture...you said you are starting with the little ones, but how big are the big ones? Unless you plan on settling with ALL your creditors, then settling with the little one is just throwing good money after bad since you will eventually end up filing BK.

[no_it_all]

Unless you plan on settling with ALL your creditors, then settling with the little one is just throwing good money after bad since you will eventually end up filing BK.

Wiser words were never spoken on this forum...If it were me, I would be putting all my extra cash in a shoe box under my bed.....

[havetodecide]

Showing as a payment less than the full, does that affect my credit score?

The big ones i mentioned are 4 other cards that I owe roughly $10.000 on each. Since i making more money now, above the median and being a single person, not too many expenses, i am assuming that if i file, they will push me into chapter 13 and not sure how that would affect my credit.

Thanks

[HHM]

Showing as a payment less than the full, does that affect my credit score?

No offense, but where did you hear that pile of garbage info...

Creditors DO note that the debt was "settled" and that is NOT a positive entry on your credit report.

However, it does sound like you have low overall debt, but realize, that many creditors will not accept settlements until you are in default, and if you go in default, your credit is screwed anyway.

The LAST thing when considering how to deal with debt is how it effects your credit.

[havetodecide]

No offense, but where did you hear that pile of garbage info...

Creditors DO note that the debt was "settled" and that is NOT a positive entry on your credit report.

However, it does sound like you have low overall debt, but realize, that many creditors will not accept settlements until you are in default, and if you go in default, your credit is screwed anyway.

The LAST thing when considering how to deal with debt is how it effects your credit.

Actually it was a question, no idea if it affects or not the credit score, so i guess it affects, makes sense.

I haven't paid those cards in more than 90 days and since i owe more money on them, i will try not to settle so i don't have to pay taxes, just trying to lower the Apr and get the late fees waved. True, my credit is not good, that's what i am trying to fix.

Thanks

[havetodecide]

Just got an overnight letter from Citibank that starts saying:
"So you are probably wondering why we just paid to overnight you this one sheet of paper. Honestly, it is because we have not been able to contact you for some time and need you to call us so we can help you."

Anyone got a letter like this? I wonder at what stage i am, what they will do after this. I leave my phone off all the time, so no worries about creditors calling me. Although i settled with Chase i am still thinking on what i should do. Thanks to this place, i have a clearer view of things and how they work when it comes to BK.

[howdidithappen]

Do you mind giving a some information with your experience with Chase and settling? Much appreciated.

[havetodecide]

Do you mind giving a some information with your experience with Chase and settling? Much appreciated.

Well, as i said the amount wasn't that much and when i called to get my APR lowered, before i could say anything, they immediately offered the 60% settlement, so i just took it.

Interesting thing about the overnight letter i got from Citibank, is that it is dated from the same day i called chase, hmm, not sure if it just a coincidence...

[howdidithappen]

I assume your account with Chase is now closed. What happens now when you apply for credit?

[havetodecide]

I assume your account with Chase is now closed. What happens now when you apply for credit?

Yes, they had closed my account before i called them. As far as applying for new credit, my credit score is still bad, i guess it will take time to be in good standing again.