BofA along with other debt.....what to do??!!

Date: Sat, 06/27/2009 - 11:11

Submitted by anonymous
on Sat, 06/27/2009 - 11:11

Posts: 202330 Credits: [Donate]

Total Replies: 1

Ok....I've got a line of credit with BofA for about $11,500. I was recently in the hardship program (as of the beginning of the year) as the only way I would be able to reduce my finance charges and actually see my balance go down. I had been paying them monthly until last month. They've called and I just basically told them that there is only one income coming into the house right now due to a lay off. And that I may be considering bankruptcy. They said that they will document my current situation and contact me with "courtesy calls" to see if the situation in my house has changed.

When will they offer a settlement or should I be the one to offer?

I also have three other credit cards (2 chases, 1 citi) that I current with due to my autopays......will BofA see that I am current on those and question it?

Any info greatly appreciated. Thanks.

jclowe1, it's very likely that B of A will not offer a settlemen

jclowe1, it's very likely that B of A will not offer a settlement unless you are several months behind on ALL your cards. If you are still current with other creditors, then your credit rating should be in decent shape. B of A will assume you want to keep it that way.

You can certainly call and ask about a settlement. But usually settlements are offered to cardholders whose credit is already trashed. In a sense, those cardholders have nothing left to lose.

As the months pass with no payment, the account nears charge-off status. The bank is more likely to offer a settlement if they think they'll have to charge off the account at 5 cents per dollar.

I think you're stuck in the hardship program unless your situation worsens and you can't pay most of your creditors.

By the way, most people now have to file Chapter 13 bankruptcy. Please be aware that the process is VERY invasive and unpleasant. I attended a close friend's Chapter 13 hearings as moral support. They will essentially put you on the most strict debt management plan that you can imagine. Getting a tax refund? Goes to the trustee. Need to buy a car? Beg the trustee for permission. And this goes on for five years.

If you are in such bad shape, that you're considering bankruptcy, then you should already be behind on most of your bills. And if you are behind on most of your bills, then you will get a settlement offer.

I know that you're probably thinking - Hey, I'm trying to prevent falling behind on my bills! I understand. I was in the same situation. But no one dealt with me until the worst had happened and I had missed three months' of payments. That's when the offers came in.

Good luck.

lrhall41

Submitted by on Sat, 06/27/2009 - 13:16

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