Debt Settlement Advice please!!

I am considering debt settlement. I have been reading a lot about it and have stopped payment on all cc. I have 13 cards with a total of 127k of debt. I have been current on everything. I am retired on social security and military disability. For the past few years my kids have been paying my cc bills and they are unable to do it anymore. So that is why I am looking into settlement. I own my home outright and recently took a reverse mortgage on it, so I have a chunk to settle with. Basically I have enough to settle 50% with everyone. My concerns are being sued of course. Does a reverse mortgage change anything. Could I lose my house in a judgement? Answers, advice, or experiences would be appreciated.

Break down of debt

Bofa - 5 cards - 48k
chase - 1 card - 10k
citi - 2 cards - 11k
hsbc- 1 card - 5k
us bank - 1card - 10k
cap 1 - 3 cards - 43k

I am most worried about the cap 1 cards as I have read some horror stories regarding them.

Thanks

personally, if you can afford to settle at 50% i would get on the phone and try to or send out settlement letters to creditors..keep in mind you may have to let the accounts become delinquent many months to make any progress...as being sued well the creditor always has the option to do that at anytime when you are in charge of status or delinquent..have you tried debt settlement options? have you looked into hardship programs w/card co? Or if you could settle with some like the bigger ones and keep paying the smaller ones? cap 1 is a difficult one, but i did settle one of mine at 50% three years after i quit paying on it...i also have another cap1 that i haven't paid on for 4 year and haven't got sued yet...but i'm sure they will at some point...but you do have some time definately before they sue you...

as for being sued...look up the term judgement proof and see if it applies to you...

What State do you live in?

Thanks for the replies. I live in Arizona. As for the settlements I do intend to settle and I know that I have to let my accounts get more behind in order for them to make offers. I am planning on doing the settlements myself.

i dont believe you are collectable i could be wrong(dont hold me to that) but im thinking that they cannot garnish your income of disability or your social security. It would be foolish for them to take you to court a waste of money not to say that they wont, but it would be awaste of everyones time be clear and make a hardship letter how you got yourself into this situation make it as sad and heart breaking as possible tell them your only income is as such (without the amounts dont tell them what your getting) it would be foolish on thier part to take you to court because they cannot garnish you. your home is protected as long as you havent used them as collatoral (mortage, whatever) credit cards are unsecured debt meaning that they cannot take your home, car whatever. Now someone like me i was sued by citibank i had no income and live in a no garnish state. the worst they could do was put a lein on my home stating i could not sell my home unless the debt was paid. but you, frankly it would be foolish of them to take you to court.

Nobody is judgement proof. He has a bank account and a home

i know they can put a lien on the home, but i ment they could not ganish the wages i opologize i had to much going on in my head i should have clarified that.

Should I send out letters now or wait until my accounts get 120+ days behind? Would I try and ask for a settlement in these letters? thanks again for the help

I received a letter from allied interstate on one of my capital one cards (balance 20000) which I missed the first payment about 20 days ago, so I guess that would be 20 days late or 50 days late? Letter says that the account has been placed in their office for collections and to obtain payment in full. Letter goes on to say contact them within 30 days to make arrangements. That seems pretty fast for the account to go to collections. What should I do? Offer a settlement deal now? Need help.

just made a profile. again any advice or someone has delt with allied interstate

Not judgment proof, execution proof. They can't garnish your wages obviously, but it is important that you not co-mingle both exempt and non-exempt funds in your bank account. If you wish to protect your exempt funds you should deposit your non-exempt funds on a “Load Card” or in another special place and keep your exempt funds in a regular bank. A debt collector will more than likely search for your bank accounts in regular banks by using your social security number and it would be difficult for the collector to find your non exempt funds on a Load Card, or in another special place. Even putting a dollar found on the ground in your bank account will allow a post-judgment bank garnishment! I can't stress that enough.

There are some types of funds that are considered "exempt" from debt collection under state or federal law. Exempt funds remain exempt when deposited in checking, savings or CD accounts, so long as they are readily available for the day to day needs of the recipient and have not been converted into a "permanent investment."
Although it varies by state, exempt funds would typically include:
• Most government benefits, including Social Security, unemployment insurance, veterans' benefits and public assistance
• A percentage of your earned wages, which varies by state
• Alimony or child support payments, and other payments for the support of a dependent
• Proceeds of the sale of property which is exempt from collection, such as a homestead exemption
• Disability or unemployment benefits from your employer
• Workers' compensation
• Retirement benefits, such as pension or annuity payments
• Life insurance benefits due to the death of an insured or for wrongful death claims
• Payments due to personal bodily injury, in an amount that varies by state
• Proceeds of guaranteed student loans

You can find Prepaid or load cards at www.creditcards.com/prepaid.php

(I disabled HTML, why is it still posting an actiuve link?)

I have 13 credit card accounts.

chase 6 cards - 130k
amx 1 card - 30k
boa 1 card - 20k
discover 1 card - 20k
some others

I'm trying to settle as much as possible. Recently 2 chase accounts (formerly wamu) were accepted to settle at 50% (total 25k) but the rest of 4 accounts were rejected and counter-offered at 85%. They said I need to show my true intention for settlement by paying for 2 accounts first and then I can insist on 50% again. However, I have fixed amount of money to clean my credit card debt. I have not even started settlement process with other banks yet. Should I pay first and deal with remaining accounts or I should do this for all account simultaneous way? If you have settling experience with AMX or Discover, please give me some feedback. Thank you in advance.

Thats a bunch of BS, don't believe that, they are just trying to get you to pay more. Don't budge from 50% and they will take it eventually.

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Chase and Bofa are creditors you can tradionally get good settlements with. AMEX and Discover are tuff but don't give up. Rstimson is right. Don't budge and get everything in writing. If it is not in writing, it doesn't exist. Black and White are your best friends in the settlement process.