should i ask for BOA settlement?

As far as I know, the creditors mostly reduces the outstanding balance to 40 to 60% under debt settlement. I don't think that they will agree to 15% of the outstanding debt as settlement.

oh gawd. 40% is impossible for me. and signing up to a payment plan is also impossible right now.

bankrupcy?

There are posters here who say they have received settlements below 20% from B of A. I would not count on it. Those kinds of settlements are probably for people who are facing chapter 7 bankruptcy due to things like disability and medical issues. If you are young and are in debt merely because you got overextended because it was easy to do, you are probably not going to get one of those low settlements.

I know you can get 35% over 4 months because they did that for me at 10 days before charge off. The total balance was 25k.....they were very nice to deal with.

I received a 17% settlement with BofA, and I am NOT facing chapter 7, nor do I have disability or medical issues. I believe my success with BofA is largely due to keeping in constant contact with them from day 1 and letting them know of my financial situation: reduced income. Did they have a fear that I may file chapter 13 bankruptcy? Maybe. But the only info they had from me as to why I could not pay on my account was that my income was reduced due to cut backs at work.

So many people that try to settle debt underestimate the importance of communicating with your creditors. Yes your creditors have to believe that there is a threat of you walking away from the debt. But believe me you are more likely to get a better settlement deal if you explain why you can't pay and keep them updated throughout the months that you are past due. I now have 3 major accounts settled. AmEx 55% at 90 days past due, BofA 17% at 120 days past due, and Chase 35% at just over 120 days past due. I applied the same strategy to all! Really it is common sense! Look at it this way - If you had 2 people owing you money, who would you "let off the hook" or give a break to:

a. The person who avoids your calls and who actually forces you to prove that they owe you the debt.

b. The person that communicates with you and says "hey I want to pay you but I just can't right now due to yadda yadda yadda...... please bear with me I am trying to work things out."

Perhaps I should have worded my response differently, but the fact remains that the only reason a bank will accept a low settlement is if they are absolutely positive they can't do better either through collection or legal action. They will not do it just to be fair or because they think the creditor is a decent person. They must be convinced that it is the best they can get.

The previous post is from me....not sure why it did that. It said I was logged in, then when I submitted the response, it showed up as a "guest" post.

Hi clovisca1949;
I do understand what you are saying. Yes I agree - I think creditors must be convinced that you truly do not have the ability to pay, and that your situation is more of a long term financial problem. This is why in my opinion communication is key.

Thanks for all your input! I called BOA's hardship dept today, but no one answered (despite them being open). Hopefully they will call me next week. Our situation seems to be spirialling downwards with only rockbottom in sight (funny how rockbottom is always lower than you thought possible). I hope BOA doesn't think we are pulling their leg or anything. We truly are in financial trouble with more most likely in our future. I just hope settlement is an option, if not...I have no idea when we will have money again to pay them. *sigh*
Thanks again!

what if the account is already with a CA? Can I still go back to BOA and try to settle with them?

ive seen fia(b of a) settle for 15% ON 40K w/4 payments 1500/mo you do the math!

I settled with BofA last night for 25% on 26k over 3 months.?? Because they accepted TARP funds, they have to write off settlements within 93 days so they won't offer any more than 3 months to pay.

just hang in there you may get a better offer from when it goes into collections.