just settled for 11%

[debee]

I settled two accounts. One of the agreements indicated that the settlement amount would be accepted as "payment in full" and the other one (different lender) that the unpaid balance would be charged off and a 1099-C issued for the forgiven amount. I'm okay with that language.

[keepsmiling]

I wish I could settle my debts for 11%--that would be approximately what it would cost to file for bankruptcy, with the added benefit that I wouldn't have to wait 8 years to file again if something happened. Unfortunately, I don't have that much money, and the JDB's who bought my debts have only offered settlements in the 80% to 90% range, and that's after adding on tons of interest and fees from the date of original default! The tax consequences of settling would not be a problem, as I am legally and actually insolvent.

We just got an offer from Chase for 12.5 %. I don't know why they make such low offers to some and not others... I figure they know the chances of getting anything are slim since we are self employed. Not doing it, but just wanted to mention it. If they'd all agree, and there wouldn't be insane tax consequences, I'd be all over that. Since that isn't going to happen, we just continue to wait.