Should I Settle with Discover?
Date: Thu, 11/06/2008 - 08:32
I'm being sued by Discover Card and will go to court in a couple of weeks (I've posted about this on another thread) and I'm thinking about settling. I can't take the stress any more. I've spent the last two weeks doing legal research and my whole life has been put on hold. If they win a judgment, they can collect for 10 years in Missouri and renew the judgment for 10 more years. That's a scary thought. Plus, I'm a self-employed graphic designer. My puny income comes through Paypal. I fear that if they win, they could garnish or levy my income and effectively destroy my small business. Other than that, I'm pretty much judgment proof as most of my assets, which are few, are jointly owned by my husband.
They're claiming I owe about $9300 (which includes court and attorney's fees and interest). They said they'd come down to $7300 and would come down no more. My question is, do you think their offer is reasonable? Do you think it's possible that they'll come down more? I've called them 3 times, and they say that's the lowest they'll go.
My husband thinks I should call them again and request that they come down to $5000.
I would have to get a $4000 loan from a relative in order to settle and agree to installment payments for the balance. That's really going to put a pinch on the family budget for the next few months, but I think we can handle it.
What would you do in this case?
Also, I have about $30,000 in other credit card debts, including one for $18000 that was originally to MBNA but was sold to CACV of Colorado--I know they're a despicable bottom feeder. And I have a Providian debt for about $5,000 and a debt to Chase for about $5,000.
If I do settle this debt, more court cases are bound to come soon--and I won't have the money to settle with them. No, bankruptcy is not an option. I've already checked into that. I don't fit the guidelines for a chapter 7 due to household income, and my other non credit card debts are too high for a Chapter 13 in MO. Plus, if we filed a chapter 7, we'd lose our house. Unfortunately, MO has a 5 year SOL.
So I'm trying to weigh whether settling with this one is a good idea or just a lost cause. I don't know what to do.
They're claiming I owe about $9300 (which includes court and attorney's fees and interest). They said they'd come down to $7300 and would come down no more. My question is, do you think their offer is reasonable? Do you think it's possible that they'll come down more? I've called them 3 times, and they say that's the lowest they'll go.
My husband thinks I should call them again and request that they come down to $5000.
I would have to get a $4000 loan from a relative in order to settle and agree to installment payments for the balance. That's really going to put a pinch on the family budget for the next few months, but I think we can handle it.
What would you do in this case?
Also, I have about $30,000 in other credit card debts, including one for $18000 that was originally to MBNA but was sold to CACV of Colorado--I know they're a despicable bottom feeder. And I have a Providian debt for about $5,000 and a debt to Chase for about $5,000.
If I do settle this debt, more court cases are bound to come soon--and I won't have the money to settle with them. No, bankruptcy is not an option. I've already checked into that. I don't fit the guidelines for a chapter 7 due to household income, and my other non credit card debts are too high for a Chapter 13 in MO. Plus, if we filed a chapter 7, we'd lose our house. Unfortunately, MO has a 5 year SOL.
So I'm trying to weigh whether settling with this one is a good idea or just a lost cause. I don't know what to do.
The following threads may help you to get some idea on Discover
The following threads may help you to get some idea on Discover and the ways of tackling with them: -
My husband was sued by Discover card
How easy to negotiate with Discover by myself?
Has anyone had any luck settling with Discover - I want to offer them 40% of what I owe them
I finally settled with Discover!!! Is this settlement offer legit?
Discover Card in debt settlement
