which isthe better thing to do?

[jbanks]

so your chapter 7 dismissed. Are you better off to call accounts and try to settle or make an agreement with them or wait until they contact you. All accounts were on time previous to filing bankruptcy. Bankruptcy dismissal took 6 months. So, now what should I do? Am I stupid to contact them (the bigger ones) and try to work something out? I have only recieved one collection letter so far and it was for the smallest debt I have. All debt is unsecured credit card. House mortgage and car payments are up to date and paid on time. I am just unclear whether to contact accounts or not. I also wondered if I was up to date on all debt when I filed-Do they just automatically send to collection anyway? I don't have money to settle with everyone--I will have nothing left if I do--Thanks for any input

[doni49]

Why was it dismissed? The answer might affect responses.

[jbanks]

dimissed

I have posted before about the case. Really boils down to bad attorney who used wrong figures in her calculations for means test. Our attorney got her head handed to her in the 2004 meeting. She was just plain wrong. So we did not think a 13 would work for us as I travel and need expense money (not able in a chapter 13). Now we are faced with which way to handle the debt and what to expect from creditors. I know they will find us eventually--

[justbroke]

I travel for a living and was in a Chapter 13 for almost 2 years. You can travel and be in a Chapter 13. I used debit cards and everything was just fine. The reason I converted had nothing to do with business related travel.

Why would the creditors even want to settle? If they do, you will probably be talking in the 60-80% range. Additionally, they'll usually want lump sums for anything under 50%.

[GoingDown]

You filed bankruptcy because you CAN NOT afford to pay back your debts.

That has not changed.

I would not contact any creditors.

I would not pay any of them. Not one red cent.

I would start looking at a strategy you could come up with that would allow you to pass the means test, and then successfully file BK and get those debts discharged.

[lovemybugs10]

Discover settled with me for 40 of our original balance. Paid over 6 months. BOA just offered me 40% of our original balance. That was their first offer. I'm going to try to take it lower.

They do settle. The only advice that I give is go in with the lowest number you know they'll never accept. (Discovers response to my lowest number was no ) and move up a little at a time. but do not go above what you can afford. If you do not pay them on time they will sue.

Also, do not give them any financial info. Based on my credit report everything is still passed due. They have no idea my husband even has a job. I give them nothing. They do not know how much we make, what our bills our, etc. Nada. This is my offer, this is all I have. Take it or leave it. In my experience they take it.

But if you are going to refile bk, there really isn't a reason to contact them and waste money paying them.

[jbanks]

thank you so much!! for answering. I thought we were the only ones in this situation. No we will not refile --we just have to deal with what we have. We have made 2 offers of 40% and they took them. We have 13 more accounts to get through. The 3 highest are 15, 10, and 9 thousand. I just wish if there are coming that they would come on and get it over with, but your advise is to wait for them to reach us? The can't sue us without notifing us --can they?? I am dreading American Express-I thought they would be first to come back after us --so far nothing--almost scares me mre not to hear anything. I am sure they all the the letter of dismissal--but since it took 6months -I guess they are all with collection agencies? THanks so much --good to know someone else has been successful trying this--

[lovemybugs10]

You need to find how to access public records for whatever state you are in. I check mine every day to make sure no one has filed against me. (I am supposed to be notified, but things get "lost" and I don't want to be surprised. )

It wasn't until Discover filed suit against us that I tried to work with them.

Because all of our debt is in my husbands name we have just about everything in my name alone and whatever is in our names is cleared almost as soon as it hits the account.

Go cash as much as you can.

I am only dealing with one creditor at a time. In the end, if we have to file, we have to file. (if someone ends up not being willing to work with us) and if we do- just by paying Discover, we've knocked 10k off of what we would have had to pay back. So either way, we are good.

We were actually on the verge of filing but didn't feel good about it, so I called Dave Ramsey. Based on our income, he said we are far from bankrupt and just to work out arrangements with the creditors. So we did.

I will warn you, this is a bankruptcy site, this choice will not be popular if you go with it.

[jbanks]

I know--It's not a popular choice but some of us are just put there---anyway--how do you look up if someone has filed a lawsuit against you. I went to public records but I don't see how to obtain that information on me or my husband? We settled with Discover today for 40% which is good--but we have a LONG way to go---Are there any that don't find you or don't bother?

[lovemybugs10]

I called my county clerk and asked them where I would find that info online. She walked me through finding it online.

I've got a few under 500 that aren't doing much aside from sending me the same settlement letter over and over. (If THEY want to sue they can have at it, lol)

Right now I'm trying to decide between boa 10k and citi 20k

I've heard from boa more than I've heard from citi, so I'm inclined to go with them first, but citi is bigger, so I'm really torn. I'm trying to find out how to find out who has a local office. That will sway me one way or the other.

I actually don't talk to them at all until I'm ready to make an offer. I went 13ish months without talking to anyone before calling Discover and made them an offer. Stopped paying all of them May of 09- the only one I've talked to beyond that first month of missing payments is Discover.

[jbanks]

Have you had to deal with American Express? I will call county clerks office tommorow to find out also where to look. I don't want any suprises. After HFS-14,000--My next worse is Amex--$9,000I am suprised that they have not called. Then I have about 3 in the 5,000 range that I guess would sue-- the others are 3,000 to 1,000. I hope I see light at some point!!! I just hate the worry and stress. We have not moved in over 19 years so I think they would find us--but are they snicky about suing you?

[SobStory]

I ended up not filing and I have been settling with creditors. The older the debt, the lower the settlement. I have found American Express to be the toughest. However, it has been more than 18 months since I paid. I have been averaging 15 cents on the dollar. 20 cents to AmEx but I am not done with them. I tried real hard to get 10 cents on the dollar but no one was going for it.
I had many, many accounts. Only one has sued but it was postponed. They did offer a settlement for 50 cents on the dollar. I am settling everyone else instead for 15 cents.
It's a tough road but I'm on the downhill side now. It works for me.
Lovemybugs is right. Not a popular option on this site. However, there are sometimes reasons to go this way and I wanted you to know that it can be done. My only advice is to offer less e.g. 15 cents. If they demand more, tell them that is all that you have. If they don't want to accept that payment, you will go to the next creditor on the list instead. They will take it.
Also, don't make payments over time. If you miss one payment, the whole agreement can be voided. Make a single lump sum and then you are done. I demand a letter in advance confirming that they will accept this amount as settlement in full. They fax it to me. Then I make the payment over the phone. Done.

[lovemybugs10]

Ohhh, I almost forgot about getting it in writing! That is something that can not be compromised.

I have to offer payments- I do send them guaranteed, signature required, blah blah blah.