Chosen by Asker

go to annualcreditreport.com,,, find out what accounts are in collections, send them each a letter and ask for 30% of amount owed for settlement, when they agree , get arrangement in writing , then pay. once settled make sure you get a paid letter from them, keep all records and you will do just fine, good luck!

by jeffinerg123

4 weeks ago

Asker's Rating: 

Per your update...a settlement is a big negative on your credit report....but if taking the settlement prevents the debt from getting charged-off, then it's the lesser evil. - Offer 50%. Get all terms of any settlement deal you reach with debt collectors IN WRITING BEFORE you give them your money. This letter should state the settlement amount and that the account will be settled/paid in full upon receipt of this amount from you. Never accept settlement deals over the phone that are not backed up in written terms. If you don’t, the debt collectors will deny that any settlement was ever made once they get your “settlement” money and will come back demanding more money from you. - Watch out for the same day settlement offers from debt collectors that aren't back up in writing....If you do this they'll take your money and come back demanding more money. Remember, all terms IN WRITING FIRST...then you pay them. - NEVER give out your checking account/bank routing numbers to debt collectors for making electronic debit payments. Pay only via USPS money order. Photocopy and keep in your permanent records along with the settlement letter. ------------------------------------------ Credit card companies don't settle on current accounts....You usually have to be at least 3 months behind on payments before they start to offer settlements....some don't settle until you've completely defaulted. Not all creditors will settle...they'll take you to court instead. Some people deliberately default on their cards to try to settle for 50%...This is a dangerous game to play. If it works....you can cut your debt in half...if it doesn't....say hello to court judgements and wage garnishment. Check out any book from Suze Orman on this topic...she has good advise. I think that Chapter 7 should be reserved for a financial emergency...it's up you to decide if this applies in your case. You can only file for Chapter 7 once every 8 years....not every time you get into financial trouble/debt. Some people here seem to get off on slamming people for filing for Chapter 7....I think that sometimes this can be the best move to make....I have zero sympathy for credit card companies. If you file and find yourself in another financial bind in a couple of years....you'll have to pay it all back because you've already filed for Chapter 7...

by CatDad- 4 weeks ago

starting your marriage in bankruptcy court? Not a good idea. Settling for less than the full amount? You will have to be behind at least 90 days on all debts. They may or may not settle. Your credit will be ruined and you will not be able to get a loan for a couple of years. After that you will have a higher interest rate until this rolls off your credit report in 7+ years. Not a good idea either. I recommend the Dave Ramsey book. Money makeover or something like that. It has some very helpful advice for people in your situation.

by timothy p- 4 weeks ago

And in the event they do settle, the money you don't pay is taxable income to you. Some firms will wait several years before reporting the income to the IRS. As for bankruptcy, no one here would have enough facts. You don't indicate what the debts are (student loans are not dischargeable) or what your income is (if you make $50,000, you wont' get a bankruptcy).

by the tax lady- 4 weeks ago