Threats of Collection Lawsuit =(
Date: Fri, 01/16/2009 - 13:29
My situation
I am currently in a debt settlement program with two business credit cards (California LLC).
Amex card $39k balance
Wamu card: $17k balance.
The Wamu card has offered to settle for about 40% of the balance. However since the Amex card had a higher balance (not to mention tacking on over 1k in late fees, etc. per month) I wanted to attack that first. I just found out from the debt negotiator yesterday that the account has been transferred from a collection agency to a lawfirm, and that the lawfirm is getting ready to file a lawsuit. The attorney also stated to the negotiator that they usually settle for 80% to 90% of the balance. The attorney laughed at the 10k offer I had previously instructed the negotiator to offer (when we thought it was still with the CA).
I am completely stressed as the California LLC I own does not have those kind of funds.
My questions
1. Should I take the Amex card out of the program and try to negotiate myself with the attorney?
2. As a California LLC with business credit cards (includes company name) and business related debts on these credit cards, can the lawfirm sue me personally? Is liability limited to the assets of the company, which is minimal.
If the lawfirm isn't willing to negotiate an amount that is affordable, I may have to face the real possibility of a lawsuit and gear up to defend it myself.
General Comments on Debt Settlement Services
1. Looking back I think I would have tried to negotiate settlements myself. I originally was set up on a 10 month plan whereby I was setting aside a certain amount every month to pay off the creditors. Well 3 months into the program Amex goes from a CA to a lawfirm who claims they settle for 80-90% of balances. I've already paid over $1500 in fees to the negotiation service and haven't seen anything for that.
Now I'm afraid that while I'm dealing with Amex, the WAMu account is going to go from a CA to a lawfirm too who might threaten suit.
I am currently in a debt settlement program with two business credit cards (California LLC).
Amex card $39k balance
Wamu card: $17k balance.
The Wamu card has offered to settle for about 40% of the balance. However since the Amex card had a higher balance (not to mention tacking on over 1k in late fees, etc. per month) I wanted to attack that first. I just found out from the debt negotiator yesterday that the account has been transferred from a collection agency to a lawfirm, and that the lawfirm is getting ready to file a lawsuit. The attorney also stated to the negotiator that they usually settle for 80% to 90% of the balance. The attorney laughed at the 10k offer I had previously instructed the negotiator to offer (when we thought it was still with the CA).
I am completely stressed as the California LLC I own does not have those kind of funds.
My questions
1. Should I take the Amex card out of the program and try to negotiate myself with the attorney?
2. As a California LLC with business credit cards (includes company name) and business related debts on these credit cards, can the lawfirm sue me personally? Is liability limited to the assets of the company, which is minimal.
If the lawfirm isn't willing to negotiate an amount that is affordable, I may have to face the real possibility of a lawsuit and gear up to defend it myself.
General Comments on Debt Settlement Services
1. Looking back I think I would have tried to negotiate settlements myself. I originally was set up on a 10 month plan whereby I was setting aside a certain amount every month to pay off the creditors. Well 3 months into the program Amex goes from a CA to a lawfirm who claims they settle for 80-90% of balances. I've already paid over $1500 in fees to the negotiation service and haven't seen anything for that.
Now I'm afraid that while I'm dealing with Amex, the WAMu account is going to go from a CA to a lawfirm too who might threaten suit.
hope
well it seems like at a minimum 55% is realistic and reasonable for Amex. I will most likely take the account of the debt settlement program and start dealing with the law firm myself if there's no movement in the next several days. The latest offer from the firm was $29,500 of the $39k balance or $3650 monthly payments of the full balance. Still not acceptable. Thoughts?
If you want to settle your debt by yourself then please follow t
If you want to settle your debt by yourself then please follow the steps as mentioned in the following page: -
Step by Step Guide for settling your debts