Just received a settlement offer

[aa06a47]

One of my credit card companies just called (and I answered the phone because I wanted to give them the name of my attorney). When I told them I had an attorney, they asked if I had gave them any money yet. (I haven't and cannot until first of month). They offered to settle for about 50 cents on the dollar. Then they said for me to think about it, and if I could come up with some money from somewhere, to call back and make an offer.

The other thing they said, I should settle the account because it will show that I tried to work with them. The lady really didn't elaborate on it.

As I am writing this, I just got a second call from another cc company. They didn't make any offers. Just took my attorney information down.

Well, should I write each credit card company now and give them my attorney's name? At least they won't bug me.

[edwards2]

I believe if you settle for so many cents on the dollar it will reflect that on your credit report...at least I know it does when you work out a settlement with doctor bills. I would tell the cc companies your attorney's name and #via telephone. If you write them a letter make sure it is certified. I would probably call them and tell them.

[SinkingFast]

If you settle, on your own, outside the BK, a couple of very important things take place.

#1,............ You cannot discharge the debt later. At all. Period. If something happens and you are unable to pay, you're stuck. You'd have to file BK again to get rid of the debt.

#2,............ The difference between what you actually owe, and what you pay now becomes taxable income to you.

For example, you owe that CC $20,000 and you agree to settle for $10,000. Now you are going to be tax liable for an additional $10,000 in income this year.

It's your call, but,............ This close to filing, I'd personally rather have a complete fresh start and begin anew instead of dragging old debt from the past into your new future.

[aa06a47]

If you settle, on your own, outside the BK, a couple of very important things take place.

#1,............ You cannot discharge the debt later. At all. Period. If something happens and you are unable to pay, you're stuck. You'd have to file BK again to get rid of the debt.

#2,............ The difference between what you actually owe, and what you pay now becomes taxable income to you.

For example, you owe that CC $20,000 and you agree to settle for $10,000. Now you are going to be tax liable for an additional $10,000 in income this year.

It's your call, but,............ This close to filing, I'd personally rather have a complete fresh start and begin anew instead of dragging old debt from the past into your new future.

I don't have any plans on making a settlement at this point. Too late in the game to do that. #2 is a big reason for that as well.

She said that when we gave you these hugh credit limits, we expected you to pay them. I said I intended on paying them, but circumstances just got out of control. (That is when she talked about settlement and how that would look good if I tried to settle things outside of bk)

[SinkingFast]

I don't have any plans on making a settlement at this point. Too late in the game to do that. #2 is a big reason for that as well.

She said that when we gave you these hugh credit limits, we expected you to pay them. I said I intended on paying them, but circumstances just got out of control. (That is when she talked about settlement and how that would look good if I tried to settle things outside of bk)

I love that part!!

Only people it will look good to is the people who get money from you!! LOLOL

[aa06a47]

Yep, charge off's and bk are both black marks on your credit no matter how you slice and dice it.