HSBC negotiations, what's next with others?

[Lajazz947]

My wife and I have been having long discussions regarding all our options including not doing a BK.

We know about 7 and 13.

We will know more next week after I finish filing my 2007 taxes.

Thanks to this forum we are getting educated know reaffirmations, insider payments, lawsuits, garnishments, exemptions etc.

I am under the impression that BK is no worse than a charge-off and that maybe BK is actually better.

I told her that I would want to see what our options are and if we need to be in a 13 try I might try to negotiate for less that what we would pay in a 13.

My negotiation would hinge on whether or not I could get the "charge-off" removed from my credit report.

I am aware of the possible 1099 issue and I would take that into account.

I JUST got a letter from HSBC saying that after a mere 60 days they would negotiate a $7000 debt for $5000.

I was very surprised that this came so early in the game but maybe they are seeing the writing on the wall and looking to cut losses early.

I know the dangers of negotiating prior to BK so I will not start anything before I know my options.

Has anybody received negotiation offers this early?

I am going to start keeping track of things.

Thanks in advance.

[justplaintired]

We were offered negotiations not long after we stopped paying. What scared me off was the 1099. Also, if it's going to show up on my credit report badly and like you said, maybe worse then a BK, it really didn't seem like a smart move in our case. I figure since we haven't filed they may even come down on the offer, but it really wouldn't matter, our credit is shot now, filing is our best choice.

Good luck