Here is a list of settlement %'s from various CC

[tinfoilhat]

Sorry, I still don't get it, I think I misunderstood the original question(no offense). We were talking about my lawyer, when you asked " Can you walk into the office and pay in cash". So again are you asking "Can you walk into the creditors office and pay in cash or Can you walk into the lawyers and pay in cash.

I think you mean the former(creditors). If so, I am not sure, as the collections department is probably set up differently than regular business operations. They usually specify a spefic address to send you money to. Some places might allow you to walk in. I hope this helps.

I read this forum and get very depressed, my situation has me depressed.

I asked if you could walk into a CC's office and hand them the settlement payment, I know you can't, it was an attempt at humor.

That obviously gets ruined when you have to explain it twice.
Sorry for trying. I'll go back to depressed mode, thanks.

[Goodgrief]

Ya, no doubt great work. Thanks a Lot!!

[Surviver]

Great information and research, thanks for the info very helpful!

[Brighterdays]

The thread title is Here is a list of settlement %'s from various CC

Sorry, I still don't get it, I think I misunderstood the original question(no offense). We were talking about my lawyer, when you asked " Can you walk into the office and pay in cash". So again are you asking "Can you walk into the creditors office and pay in cash or Can you walk into the lawyers and pay in cash.

I think you mean the former(creditors). If so, I am not sure, as the collections department is probably set up differently than regular business operations. They usually specify a spefic address to send you money to. Some places might allow you to walk in. I hope this helps.

[tinfoilhat]

Sorry, I am not sure if you mean my creditors or my lawyers.

The thread title is Here is a list of settlement %'s from various CC

[Brighterdays]

Can you walk into the office and pay in cash

Sorry, I am not sure if you mean my creditors or my lawyers. I guess the answer is yet to both. She(lawyer) is a referal from a friend of mine(lawyer). She is only charging me $695 for my Ch7. She only charges $900 normaly. I told her I want to retain her to handle the onslaught of calls i am sure to get. She did agree to that.

[tinfoilhat]

Can you walk into the office and pay in cash

[Brighterdays]

great sites, its good you are doing lots of research, best of luck to you

Thanks, I try to have all my ducks in a row. I am just waiting to talk to my lawyer in 2 days to see what all she can help with. She has been fantastic, I have had 4 free consultations with her. I have offered her money, but she just said wait till you are ready(twilight zone strange). I'm having a huge problem trying to stop paying my bills. I have been programmed for 20+ yrs to always pay my bills on time. A ch 7 isn't out of the question, but I might have to wait a year to dispose of 30k of inheritence. I am trying to use the inheritence (which is no way near enough to pay full amount) to settle my accounts. But If I can stomach being a dead beat for a year I will just file ch 7.

[bk4sky]

great sites, its good you are doing lots of research, best of luck to you

[Brighterdays]

I found this site also from the Irs about what is insolvent when you do a debt settlement.

http://www.irs.gov/individuals/article/0,,id=179414,00.html

[Brighterdays]

Here is a good link on the subject:

http://www.creditcards.com/credit-card-news/forgiven-debt-1099C-income-tax-3513.php

Here is the form from the Irs you need to file

http://www.irs.gov/pub/irs-pdf/f982.pdf

From the Irs:
Example. You were released from your obligation to pay
your credit card debt in the amount of $5,000. The FMV of
your total assets immediately before the discharge was
$7,000 and your liabilities were $10,000. You were insolvent
to the extent of $3,000 ($10,000 of total liabilities minus
$7,000 of total assets). Check the box on line 1b and include
$3,000 on line 2.
Line 1c
Certain individuals may need to complete only a
few lines on Form 982. For example, if you are
completing this form because of a discharge of
indebtedness on a personal loan (such as a car loan
or credit card debt) or a loan for the purchase of your principal
residence, follow the chart on page 2 to see which lines you
need to complete. Also, see Pub. 4681, Canceled Debts,
Foreclosures, Repossessions, and Abandonments, for
additional information including many examples and
completed forms.
TIP
If you made an election under section 108(i) to
defer income from the discharge of business debt
arising from the reacquisition of a debt instrument,
you cannot exclude on lines 1a through 1d the
income from the discharge of such indebtedness for the
taxable year of the election or any subsequent taxable year.


So in a nut shell if your total liabilities (before settlement) outweigh your total assets your in the clear. Sounds like a no brainer to me.

[Brighterdays]

What do you have to show to be insolvent?? Just curious. If I can save enough money to pay off creditors(say in a year - maybe too long). This might be an option for us or maybe not...I'm new to all of this and just researching.

Thanks for posting!

I will try to find an exact quote on the subject. My lawyer also concurred with the subject. The major thing to remember is that all the settlements may look real appealing, but they are on the inflated balances the cc companies have tacked on every legal fee they can. Ie you owe 5k and stop paying, your new balance 8 months later could be 7k or more. so 35% off 7k is $2450 while 35% off 5k is 1750 paback. It is still a nice deal, but the larger the % the less appealing it is. Make sure you read this site. You need to protect yourself against future suits if your debt is sold off. JBA"s are notorious for doing this. The original CC holder is so much easier to work with. You usually have between 120 and 180 days with your original CC holder before its sold off to JBA's. And get every offer in Writing.

BK is the cheapest and easiest option(if you qualify). Your credit will get screwed up either way you go. And for God's sake, get every offer in writing.

http://www.creditinfocenter.com/debt/settle_debts.shtml

Here is some info on insolvency. There is an irs form that must be checked insolvent.

http://www.debtconsolidationcare.com/forums/about10687.html

[peacesoon]

Hi...

You can get around the tax liability. You just need to prove yourself insolvent.

Hey If I could I would file ch7. I have nothing against it, I just can't do it. My Bk attorney does debt settlement and she says I can get a no deficiency judgment clause.

Some of us here cant' file bk, so we have to look at other options.

What do you have to show to be insolvent?? Just curious. If I can save enough money to pay off creditors(say in a year - maybe too long). This might be an option for us or maybe not...I'm new to all of this and just researching.

Thanks for posting!

[Brighterdays]

I find the debt settlement process risky, time consuming, and the 1099s will increase your tax liability into the thousands. If you can file a BK, you should do that instead.

You can get around the tax liability. You just need to prove yourself insolvent.

Hey If I could I would file ch7. I have nothing against it, I just can't do it. My Bk attorney does debt settlement and she says I can get a no deficiency judgment clause to avoid further legal actions after debt is settled. It is better to deal with the original creditor before it goes to jba's.

Some of us here cant' file bk, so we have to look at other options.

[peacesoon]

Thank you!

Good site!