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BLL

Is settling for 50% a good deal. You are looking at settling 50,000 for 25,000. This is after less than 3 months or should I wait 120 days. What is the best way for them to word the settlement on my credit report? Thanks for any advice.

Posted: Sun Jul 27, 2008 6:38 am Subject:

I'm not sure about the credit report outcome, but, in my opinion, a 50% settlement, HECK YEAH!!

Posted: Sun Jul 27, 2008 7:28 am Subject: I'd do it

If you are really in a debt settlement situation, I would do it. Get a nice clean slate and start rebuilding your finances now. I've talked to several of the top d/s companies and I feel the best I will get is about 50% on an average and that's not adding in their fees.

I'm not sure about your credit report, but I hear you can send in a letter later on and hope the companies don't respond to it.

Posted: Sun Jul 27, 2008 7:57 am Subject:

50% is good. Do you have the money to settle? Do you feel like this is the best option for you? I myself am not a gambler so I would take the settlement. But if you feel like gambling and can take the stress, you could always wait.

Also, make sure you get this settlement in writing before you pay them a dime. If you don't they may come back later looking for the rest of their money. collection agencies seem to have very short memories and change their minds alot. Everything in writing please!!!!!

Posted: Sun Jul 27, 2008 8:43 am Subject:

You would need to stipulate that they not sell the remaining balance and there will be no way around the 1099c they would issue for the forgiven $25k.

Posted: Sun Jul 27, 2008 10:21 am Subject:

You could try to get them to note your CR as "Paid" or "paid as agreed." The best you might be able to get is "settled" or "settled for less than full balance." Start out by asking for what you want and negotiate if you have to.

BLL · Posted: Sun Jul 27, 2008 10:32 am Subject:

After reported as income - on the 1099 - how do you prove you are insulvent? I heard if you can prove this the IRS will waive this as income? So paid is better than settled on the credit report? I have to borrow the $ off my dad and slowly repay. I have 90,000 worth of unsecured debt but 1 creditor is 60,000 of it so this is a good start.

Posted: Sun Jul 27, 2008 10:34 am Subject:

Filing BK is about the best way to show insolvency and based on $90k may be your best course of action. If you can't pay them $25k in one lump sum, I doubt very seriously they will work with you. Are you dealing with CA's(JDB) or OC's?

BLL · Posted: Sun Jul 27, 2008 4:04 pm Subject:

I am dealing with original creditors as of now. When will they sell it off?

Posted: Sun Jul 27, 2008 4:53 pm Subject:

No telling. For that much, they would likely sue. If they don't, then whomever they sell it to would if they sold it before SOL expires.

Posted: Sun Jul 27, 2008 4:58 pm Subject: more info for you

Bill, I was asking a similar question the other day about the 1099 Form in regards to debt settlement. I was told you will need to do a Form 982 because you end up getting a 1099 because of your debt settlement. I haven't read up on the Form 982 yet, but you can ask your tax person or do a google.

BLL · Posted: Sun Jul 27, 2008 6:06 pm Subject:

My tax guy said if your debts are more than assetts you will not be required to pay taxes on the money. If you have a ton on equity in the house or cars or stocks you will have to pay on the forgiven amount. It is there to punish rich people who settle when they can pay. What do you think of a 50% settlement? I can borrow 20,000 but not 30,000 so that will be my offer and if they do not accept in a few months I will go a small ch. 13.

Posted: Mon Jul 28, 2008 7:01 am Subject:

BLL · Posted: Fri Aug 29, 2008 2:33 pm Subject:

Should you never give checking info for a payment? What could they do if you have a settlement letter?

Posted: Fri Aug 29, 2008 2:49 pm Subject:

Never give them access to your account.

jedi · Posted: Fri Aug 29, 2008 4:22 pm Subject:

That is a sweet deal Bill. Most OC´s do not offer that much of a savings under three months delinquency, as mobile says do not give them access to your account. Make payment with a cashiers check or money transfer only after you receive and have an attorney review the settlement letter. you are talking about too much money here to fool around with.

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