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What settlement percentage do I try for?

Date: Thu, 03/26/2009 - 12:35

Submitted by anonymous
on Thu, 03/26/2009 - 12:35

Posts: 202330 Credits: [Donate]

Total Replies: 2


I am disabled and my lawyer has advised me that I am judgment-proof. Thanks to information from this site, my lawyer has also said that I'm well-informed enough not to get into any traps so that bankruptcy is not really needed. However, I would still like to settle my credit cards if possible.

I have 6 debts that are all about three years dillenquent. Two have resulted in uncontested judgments, but again, I have no assests to pull and no pay to garnish. I want to send settlement offers to these companies making it clear that they have nothing to gain unless they accept my terms.

So, question 1: how do I insure that this will only effect my credit report positively?

Question 2: what is the lowest percent of each debt that will realistically be accepted as a full payoff?

P.S. The nature of my disabilty is definitely permanent and also has a negative impact on my mortality, so these offers are made on a "act now" kind of basis.


Hi Singe,

1: Pay them off in full. Anything less is a negative mark. But with 3 years delinquency, your credit report is already torn to shreds. So any settlement would help it improve, even bankruptcy would help it improve.

2. It depends on the individual creditor, and more specifically, *who* is assigned to your account. Some may settle as low as 20%, some may not budge over 60%. But of course you would make your initial settlement offer ridiculously low, while they will make theirs unmanageably high. Somewhere along the line, your percentages will come closer together.

Honestly speaking, though - considering your tragic situation, I would just let them go.

I wish you the best,

chrys


lrhall41

Submitted by Chrys Henderson on Thu, 03/26/2009 - 22:09

( Posts: 2538 | Credits: )


Thanks for the feedback, Chrys. With having kept up with several secured loans, most of which are now fully repaid, my credit is already doing a nice rebound. The last CA even let slip that the debt he was calling on was what was keeping my score down to "nearly 700", a far cry better than a year ago when I was barely over 500. A couple of CA's and even one attorney are already offering me 60-50%. With the number of accounts and the limited funds I have to work with I'll try a 10% offer and settle with whoever gets to at least 20% first.


lrhall41

Submitted by on Mon, 03/30/2009 - 20:18

( Posts: | Credits: )