Negotiating CC debt

[Bizbad]

Has anyone had any experience with this? I am trying not to file Ch. 13. I owe about 40K on bad business debt. Do I just call them and say I can't afford it unless they reduce the balance and toss out the interest? Any help would be appreciated.

[HHM]

Where would you get the money to pay? Typically, settlements (especially on the biz side) require lump sum payments or very short payment plans. Although it is "possible" it is unrealistic to expect them to reduce balance, drop interest, and give you an extended payment plan.

Have you missed any payments? If not, they won't even talk to you.

[Bizbad]

I have not missed any payments. I see your point. I also have about 35K on a loan for vending equipment. If I just tell them to take the equipment back, does that count as a charge off on my credit report? I am guessing that if I do that and then wait long enough on the CC debt to get a settlement offer that my credit will be pretty much as screwed as if I file Ch. 13. Is that true?

[thistoowillp]

begotiate with CC for rate and monthly payment

HHM,

I have read many posts of yours and found them very insightful and helpful.

Somebody posted earlier (08?) that he was able to have BAC and Chase to agree to a low rate (1.9?) and a lower monthly pay. But he was not able to get some other cc to do the same.

Isn't it in the best interests of cc to offer a lower rate and monthly pay, but to get a full payment over an extended period of time, instead to see ch13. I mean those are pretty much the only two options, right?

BTW, do you know any case of bk13 while they still have some liquidity in the bank (but see writing on the wall that the monthly payment and the pending high interest rate is just too much too overcome)?

You mentioned the Hardship program of cc companies. What scenario does it apply to?

I am not sure if you went through bk, can you shed some lights on the "life changing" impact that bk causes?

Thank you so much for your help!

[ccmisery]

I hear and read stories, I had little luck with negotiating with cc companies. It's probably because I'm not late on my payments, some cards have good interest others were jacked up to insane amounts for no reason.

I agree with what was already said, you would have to have a big chunk of $ to settle it, if that was the case you wouldn't even been in debt in the first place right?

If you can get your APR % down, then good luck. I find now the hardest time to barter with these crooks.

[fltoo]

Why would you file chapter 13? If it is business debt, you can do a chapter 7non consumer and not worry about the means test.

You trying to save the business?

[HHM]

Why would you file chapter 13? If it is business debt, you can do a chapter 7non consumer and not worry about the means test.

You trying to save the business?

Remember, the test is, the majority of ALL debt. If this OP has a mortgage, odds are, they may not be primarily consumer debt!

[fltoo]

True, maybe the OP can give us more details on other debt.

Note that any cc debt or Home Equity debt that can be attributed to a business, stock market investments, real estate investments is considered non consumer debt with a paper trail to prove it.