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Bankruptcy or settlement

Date: Mon, 12/07/2009 - 20:44

Submitted by anonymous
on Mon, 12/07/2009 - 20:44

Posts: 202330 Credits: [Donate]

Total Replies: 4


We are scheduled to file on Friday. Our creditors have the attorney's name. We are starting to get cold feet about being tied up with the legal system and not have much control. Thinking of trying to settle instead. Had an offer from Chase over a month ago for 30%. Citi had only come down to about 50-60%.

If we decided to go back to the settlement route, are there any implications now that they know we have a lawyer and the creditors have possibly contacted the lawyer. Can we go back to the creditors and start negotiating again?

FYI - The money to settle would come from a loan from our 401K. This money is currently protected by bankruptcy law until we pull it out.

Any thoughts? Concerns?


Quote:

If we decided to go back to the settlement route, are there any implications now that they know we have a lawyer and the creditors have possibly contacted the lawyer. Can we go back to the creditors and start negotiating again?


Yes, you can do that. It was discussed several times in the forums. You may try the search box.


lrhall41

Submitted by SC on Tue, 12/08/2009 - 03:34

( Posts: 3937 | Credits: )


I would say call your creditors and tell them exactly what you just said- you are filing bankruptcy with your atty this friday, and give them the name and # if they don't already have it. Let them know that you'd rather work out a settlement with them though if you can to avoid actually filing for bankruptcy and see what they can do for you. You can only do what you can do- see if you can afford the settlements they offer.


lrhall41

Submitted by neveragain09 on Tue, 12/08/2009 - 08:49

( Posts: 39 | Credits: )


Something to think about if you settle then anything that is over $600 off the amount you will get a 1099-c for the difference from those creditors and you will have to file on your income tax. Everyone has their own opinions and this is just my opinion, I filed chapter 7 bk in 2002, it was the best thing that I ever did and would do it again in a heartbeat. I might not have felt the same way if it had been a chapter 13, I know its different. You have to do whats right for you. Good Luck, I hope all goes well for you, its hard being in these situations.


lrhall41

Submitted by on Tue, 12/08/2009 - 09:56

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