AMEX/VISA debt quesiton for all....

[catleg]

I think it would be very messy. You might get Citi to go for 50-55%, then you'd get 1099'd, but I doubt Amex would budge so soon, and even so you'd get another 1099. Better to figure out a chapter 7 strategy. Settled isn't that much better than a BK, as long as you manage to put the unused cash into an exempt asset.

Bottom line, easy credit isn't coming back, better to have cash and hit the reset button on the debt.

[AngelinaCatHub]

It is my opinion only, but you might attempt to bargain but 20K with what you owe won't work. It would be better to get that mortgage adjusted, take the 20K and put it towards the household perhaps in payments ahead (make it clear they are advanced payments and not put it on principal only. Use the money for exempted expenses only. AND make sure your lawyer is in agreement with this suggestion. Remember, only my opinion. 'Hub

[I_Suck]

We have an old AMEX cc debt for around $13K that has gone through 4 or 5 collection agencies in the last almost 2 years now. I am pretty sure AMEX still owns the debt so I plan on sending their settlement department a certified letter this week with a settlement offer of 20% of the balance. If they take it, great (everything in writing of course). If they don't take it, I guess they can keep moving it around to different collection agencies. It's been almost 2 years since default so I am not sure what their strategy is.

[Skipper]

Has anyone been successful in settling an outstanding balance with American Express for less than the full amount?

I am currently 60 days late and have a balance of about $35k. I also have a Citi Visa with a $30k balance. My options are limited to a settlement or BK. I do not have the ability to pay the balances in full.

There is a possibility that I can come up with about 40-50% for settlement, I am just not sure if that amount would work.

I know I am going to take a credit hit, but after a job loss (unexpected 65% pay-cut, as I had to take a new job), housing crash here is the West and my IRA getting crushed in the stock market (only have about $20k left in it), it has been a perfect storm. On the bright side, I think I may get my mortgage modified, so the next step is my cc debt.

I would appreciate any and all advice, as I want to make an educated decision on how to deal with it.

Have a good weekend!

Skipper