WHo has "negotiated" with creditors?

[howdidithappen]

Saw a couple of bankruptcy lawyers and have been told that I will ahve to repay all my debt in TOTAL due to equity in my home.... Received a message from one credit card company that they would like to see what can be done before they file suit. What are they looking for (besides MONEY)? How long will they extend payments? What happens to the interest rate? All comments are welcomed and appreciated!!!

[Richard Kaufman]

I had to do two yesterday for a client.
Discover. Real easy, they accepted 40%. More then I asked for.
Chase, Had to deal with their lawyer. Would only accept 85%.
Total savings over all was 12k. Not bad! Saved them from filing. It felt good. They didn’t get the best loan due to a real low score and mortgage history, but the credit was a quick fix ,since everything will be paid off and no BK. I will be able to lower them in 6 months about 3 points.

[howdidithappen]

Are these lump sum payments or do they have time to pay them off? If so, How long? I'm confused - what do you mean by "I will be able to lower tem in 6 months about 3 points"? Thanks for your reply!

[keepmine]

At about the 150 day mark of my default. Chase offered to settle at 45% and Cap 1 at 50%. Both offers were unsolicited on my part. The closer you get to chargeoff, the more likely it is they'll deal. Since I was gonna file bk anyway I didn't ask any questions about terms. From other postings, they'll usually want to be paid over 60-90 days.

[wayne-o]

mbna settled mine at 50% over three equal monthly payments. I would imagine 90 days is gonna be about the best you can do.

[HenriettaHen]

You guys know about this part, right? (just checking....)

I'm wondering if any of you can comment on if/how you applied the little formula provided below, from [10] IRS Publication 525.

I did not settle, because I had no money. But they were offering me the moon. I am curious as to how this would play out for a high-income filer, or someone with assets.

Thanks!



Tax consequences

http://en.wikipedia.org/wiki/Debt_settlement

[HHM]

Generally settlements are lump sum, or very "short" payment plans. There are a lot of factors that go into determining the settlement amount, i.e. how recent are the charges, how much interest have you paid over the course of having the card, how delinquent are your payments etc.

I find that the "besides money" comment somewhat humorous, what else would they really want except money?

[HenriettaHen]

Generally settlements are lump sum, or very "short" payment plans. There are a lot of factors that go into determining the settlement amount, i.e. how recent are the charges, how much interest have you paid over the course of having the car, how delinquent are your payments etc.

HHM, did you mean 'car' or 'card' ?

I feel a typo.



Oh, PS - About "what else would they accept?"

I once offered to trade lives with a creditor - I did this in a HIGH SHREAKY VOICE .

They hung up. Guess they didn't like my deal. heh.

[HHM]

I meant, "Card", I fixed it in my original post!

[howdidithappen]

The call was actully from a collection agency - Law Offices of John P Fyre. My remark "besides money" was meant to be funny (It's laugh or cry at this point and there's very little laughter right now). Do they ask you financial questions, how much do you earn, own a home? etc. - or just give you numbers. amounts they want?

[Minnymouth]

If most people can't meet the monthly payments - how are they going to payoff a card in a lump sum at 40-50%...???
Chances of getting a loan are - 0 -........unless they have equity they can tap into to pay off the creditors....

Some people can do a refinance or consolidation and clean up their problems without filing bankruptcy.

You just have to decide which is the best route for you to take...

[howdidithappen]

My ex owes me quite a bit in CS (medical reimbursements - about $10K) which would help me pay these bills. Is any of this taken into consideration? of course, it's a vicious circle - need to pay a lawyer (all want $5K retainer)to get money from ex

[Richard Kaufman]

Are these lump sum payments or do they have time to pay them off? If so, How long? I'm confused - what do you mean by "I will be able to lower tem in 6 months about 3 points"? Thanks for your reply!

It was a debt consolidation mortgage refi. The agreement was to have them paid in three weeks. My client went to a bankruptcy attorney, did a means test and would have had a $800.00 a month trustee payment. His attorney advised him to refi if he could. The new loan rate was high because of a 509 & 1x60 on mortgage, but still lower then if he had filed. Once his credit report reflects all the Credit Cards paid off , and no BK. in six months I will put him through FHA and lower his rate. He will wind up paying about $200.00 a month more than his

[Bandit]

I am negotiating with the hopsital right now. They said they would drop my bill 30% if I can pay it all off in a year. If I cannot pay it off in a year then I get no discounts and it will go to collection.