My Debt Settlement Progression

Kaylee,
Sorry, Life got to me and I haven't been on here in a while.
Ok, here is how it works.
Liabilities $362,000
Assets $330,000

So basically, when you get a CC discharged then you will do this calculation. Let's say you get your BofA card settled out for 10,000. Then you are insolvent before the settlement to the tune of 32,000. Therefore, if BofA sends you a 1099c for the $30,000 it forgave then you fill out the form 982 and you can exclude that 30,000 from your income.

Now this is where it gets tricky because now your calculation is different on the next one you settle out. Because you will have only $322,000 in Debts and $320,000 in assets. So if you settle one of the Citi cards out for $5,000 and you get a 1099c for $13,000 you can only exclude $2,000 of that 1099c income and you will have to pay taxes on the $11,000.

But I would parrot dantheman and tell you to take a good look at the value of the 3 homes because you don't want to over value them. I would get an appraisal to make sure you aren't saying they are worth more than what they would actually sell for today. I imagine that it is actually less than what you listed. And this would let you deduct more from your coming 1099c's.

Good luck. If you go to a CPA and he says something different that what I wrote, then go find a new CPA. Because I'm pretty sure on this. I just got done reading publication 4681 (http://www.irs.gov/pub/irs-pdf/p4681.pdf) to make sure that I am correct on this.

best to you!


Part 1 check box 1b
Box 2 enter the amount that you got a 1099-c for

Thank you so much Debt Free to Be! I am going to print this out and take it to my CPA cause he did not know much about it but promised to read up on it.

I can see it is quite complicated and I am sure I will have questions later but meantime I wanted to tell you I appreciate it very much.

Kaylee

I had a similar experience with the creditors calling me 20 times a day.

Here's a solution that worked for me:

• Get a cell phone....cheapest one with a cheap plan.
  
• Activate it and then turn it off.
  
• The next time the bank calls tell them they are reaching you at your work and you are not supposed to receive calls here.
  
• Give them your new mobile number as your new "home phone"
  
• When you call the bank, ONLY call from the new mobile phone
  

If this is their offer at 39 days, you will likely get a better one if you wait another 30-45 days. Call and thank them for their offer, but state that you can't afford to meet that offer. Counter-offer with a low number - something around $3000.

Remember to stay in touch with them. Don't let them think you are on the lamb!

They will come down even lower. Probably to $5500 or so if you play your cards right.

good luck!

Quote:

Thanks everyone for the advice. The phone thing is really good and I might try that. I work from home and so I can just ignore the calls but they still upset me greatly.

Debt Free, I took the print out to my CPA and I thank you again, hope you stay on the forum cause I imagine I will have questions when tax time comes around.
Kaylee

Hi Guys,

I have been off forum for nearly 2 weeks so lots to read but wanted to give an update.

Not much to tell and depressing actually. Citi had offered me 40% at 39 days and I was thrilled but sent them a counter of 20% to pay in 3 payments. Did not hear from them other than the usual calls and finally hooked up with someone who said she thought she could get her manager to sign off on 25%. We talked back and forth for about 3 days and she was pretty certain it would happen. All of a sudden I did not hear from her and when I called her it always went to voicemail. Finally about 2 weeks later I talked to another person who said he could see on the computer that it was denied. No reason and now they were wanting 60%.
Guess I made them mad but not sure how since I followed all advice, never lost my temper, answered a call about once a week, stuck to same hardship story.
So Friday I just kept repeating NO, I can't do it, I have $1500 a month to put towards a settlement and that is all, whoever takes that is first. He said he would put in to his manager 27% (my limit) and will call me tomorrow but he is not hopeful. We are now at 70+ days with Citi.
MY QUESTION: Usually it is same old conversation but this guy threw something new at me. He said if I could pay $500 it would 'stabilize' my account and not show as so many days past due. I said 'for what purpose" and he said to give me time. I said 'I am insolvent and time is not going to fix it'....he said some more but I don't remember and told him I would have to research that. Does anyone know what it means? It seems to me that it just prolongs the inevitable and would take money away from what I am trying to gather up for settlements.
Meantime, they are still calling 10-15 times per day and Chase started on Friday when I was 13 days late and they are calling 15-20 times per day. I have not answered yet and no messages but I googled the #.
B of A has not started calling yet but I am now 7 days late so expect them anytime.
I am kind of bummed, it really just makes me sick, all of it and I want it to be over but I guess we all feel that.
Thanks for listening.
Kaylee

Kaylee, absolutely do not do it. You are getting closer to your terms by the day and the clock is in your favor. If you give them even a dollar, you will become less delinquent and therefore less able to reach a settlement. The ONLY time I ever gave a dime prior to the settlement is when I reached a settlement deal with one card and they told me that they would apply the payment towards the settlement. That is way different. This is another trick they use to mess with you.

I agree - don't pay them anything unless it is a settlement. I think once they see that you can make payments they will be harder to settle with. They will get the idea that your hardship is not that "hard" and can muscle you into paying payments.

Thanks guys! That was actaully my thought but I had never heard of stabilization so it feels good to have the reinforcement, I will keep hanging in with my story and keep you posted.

Kaylee

Hi Kaylee,

I actually got the same letter as you did with Citi at around 35 days but was offered 45% of current balance. I try to get them to 31% which the rep was really sure that she can get it approved. I like you was declined and try to call her back but my call also went straight to voice mail.

I was told that if I did not accept the 45% it would go up to 60% so I took the offered because it was early and I wanted one less CC to deal with. I might have gotten a lower offer if I waited but did not want the balance to go up anymore and the risk of being sue.

Quote "Thanks guys! That was actaully my thought but I had never heard of stabilization so it feels good to have the reinforcement, I will keep hanging in with my story and keep you posted."

Greetings,

The scurvy dogs will try everything in the book!
They used the term "update" payment on me.

"Stabilize", well you've gotta give them credit for trying.

Don't do it it.
As the clock ticks down, you are gaining settlement strength.

Ciao,
King "Kash" Jabba Labba

gotta agree with the others. do not give them a dime. and don't let them pressure you into borrowing even $20 from friends or family to make a payment.

I am staying true to the course, makes my stomach sick but I am...will keep you guys posted.
Monkeyboy, my offer expired so that would not be an option, I had wondered if I made a mistake but for good or bad now I am glad I am going to wait them out.
Kaylee

hey Kaylee

I have been watching your progress for a long time now - wondered how things were going.

I too am beginning the process - I am over 1.5 months late on my Citbank CC - its about 42k -

this is one of the most scarey things I have done - but there is no way i can keep up with it.

Good Luck to you!

Quote:

And I quote "....but I received two of those UPS offers from Citi....we eventually were offered about 30% at 120 days or just a tad later....."

Greetings to all settlers,

Seems as if citi-whatever is following in the footsteps of chase-me down.
From what I have seen, citi-whatever was a semi-tough one to settle with.

Good Luck to All.
King "Kash" Jabba Labba

You guys are great.
I have the day off and was going to call Citi, Chase and BoA but I was dreading it, depressed over the 30 calls a day and procrastinating so I signed on here first and saw the posts, got cheered up and the gumption I need, will call now and then post and update.
thanks all!
Kaylee

Keep your spirits up! The calls are simply a symbol of getting closer to your goal. Each call is an opportunity to settle. Another way to look at it is to take the amount of money you will save by settling and divide it by the number of calls. I bet you are making big bucks per call. So everytime the phone rings, look at the phone and say "thanks citi for that $50".

Debt Free--that is a good one! Remember back when I started I was asking everyone how they came up with the money to settle since I had none and could only do $1500 a month towards a settlement, well, I already have 3000 and about to be $4500 so that will be one settlement, you are right it is great not to be paying!

So I called today--what a way to spend a day off.. :( but it was all good, no progress really other than keeping in the waiting game but I am 95 days late on Citi 1 and 78 days late on Citi 2. I have tried twice to present settlements to them other than their original offer that came at 39 days for 45% but so far declined. the person I spoke with today basically said wait until about 110-120 days. Sigh.

Chase(36 days) wants me to pay $500 a month for 5 years on 20k balance. I said 'well, my account will be closed whatever I do, correct' and they said yes so I said I will save all my money towards the first cc that offers me a settlement and no I cannot pay you today.

B of A has not even called me but I am only 24 days but that is highest balance, 40k.
I did get a letter from them saying if I had a hardship to call them but I have been on phone enough for today with my sad sack self!

Unregistered: Please register and join us, post your story, it really does help and we can do it together!

Nutshell, the toughest part is waiting the required number of days before they will discuss settlement but you can do it and pm me if I can help.

I do have another comment and I think it was blackbeasst who said to take all their calls but keep them short. That is just not realistic to me, maybe I get more calls than you but I get about 30 a day and that it just Citi and Chase, they have different units I think but the calls come from about 4 different numbers and even when I do take one they still call back 10 minutes later, I would get no work done if I took all their calls so I take one a week or call them. Any more thoughts on this?

thanks,
Kaylee

Hi Kayley:
I am anxiously watching your progress. I just received an offer from Citi of 45% at 41 days with payments. I was excited until I called and found out I had to settle in three payments, impossible! I tried to get longer payments, no way. I offered 35% and they denied it so I am waiting to see what happens with you since I am 2 months behind you!

Thank Kaylee

I have gotten 2 Text Messages (Ya - that's right a text message) on my cell (*i dont have a home phone - thank god).

I am going on too my second second month of non-payment - so i am sure I will be getting calls shortly -

you are an inspriration - as is everyone here - I would have never even thought of trying this if I didnt see all of the stories here -


as for the calls - I read on some other post that they were taking maybe 1 call a day-they were always polite to the rep , always with the same story -
personally - I couldnt take 30 calls a day and still do my job.

Thanks Nutshell and if we support one another we can all do it!

with calls at work there is also the privacy issue but I think if I took 30 calls a day even when I was off work I would not get anything done.

I get the text messages also, about once a week but I am surprised you haven't gotten calls yet.

I did just take one from Citi (a new #) and it was brief, she tried to say they could set me up with a payment plan to bring my account current in 3 months but I said 'how does that help me because I will then be back in the same boat, no thanks, I want to keep all my money for a settlement' and after I said that and she saw she would not get any money she just said 'keep in mind your timeline and we can only keep it inhouse for 180 days and thank you for taking time to talk to me today." Very nice.

Kaylee

Greetings Kaylee,

I am repeating my advice from another post......but it is a great thing for them to be calling you. If they were silent, then I would be worried.

And as "Debt Free to Be" stated "I bet you are making big bucks per call. So everytime the phone rings, look at the phone and say "thanks citi for that $50".

I concur 1000%.
Carry On!
King "Kash" Jabba Labba

I settled with Chase for 20%, chase kept saying I don???t qualify for settlement, after 180 days they passed it onto NCB to collect for them. I offered chase 5,000 for 17k they turned it down so I paid 3,800 for 17k with NCB.
I only talked to them 2-3 a month, I had all calls go to my cell O??? they did try others numbers but they was always told they had the wrong number. This was a month ago.
I am not insolvent, I will be getting a 1099c from Chase I???ll have to pay about 15% tax
Good Luck, waiting is on your side

Greetings Sunkist!

Congrats on your settlement.
Way to go!

Regards,
King "Kash" Jabba Labba

Kaylee, If you are still around to read this....the way I did it was that I told them that family was willing to help me, but that they would only give me so much money.....that it was up to my family and it was very tenuous (sp?) how much they would help me......I only had so much help .....I wonder how you are doing now...Hang in there.....you can do this!!! debtor in CA ...still not signed in~~

Hi All,

Sorry I have not been on the forums, I got crazy busy with summer family fun and also trying to forget about my CC mess, just hanging in, waiting to be late enough.

But I had some news so thought I would update.

B of A, I am still not at 60 days late yet. I am about 45 I think. They have never once called me. I thought they had because I get so many calls a day from Citi and Chase and suddenly a new one popped up on caller ID and I thought it was them but it was just a survey. Anyway, they sent me one letter saying I might have overlooked my payment and giving me a number so I called it and told them my hardship. They were the best, said my card would not even close until 60 days and my interest was still the same. This shocked me since it is my highest balance at 40k. That was the good news. Now for the rest:

Chase, I am at 90 days or more and they call several times a day. I talk to them once a week and tell them the same thing and they listen but say they will still call. And I was only recently eligible for settlement but it was 80%. I think we both understand each other in that I will wait for better offer of settlement.

Citi, they are the worst but maybe it is cause I am the latest. I have 2 accounts for 18k each and one is 90 days late, the other is 120.
They also call a lot and are mostly nice. Although one of their numbers is a 520 area code and it is an auto dialer, I cannot call them back as it won’t accept calls. They mostly acted like Chase, just listen and tell me to watch my 180 days date so it doesn’t charge-off.
I usually talk to them once a week but I got busy and did not talk to Citi for 2 weeks so Monday I got a phone call of a different sort and they left a message to call on urgent matter so I called and found out my Citi of 120 days went to UCB collection agency. First off it shocked me because they led me to believe they would keep it in house until 180 days but maybe cause I did not answer for 2 weeks, not sure.
But these guys are much more aggressive and sleazy. He was very patronizing (probably cause I am female) and said the best he could do is 45%. I told him best I can do is 25% and that I have others coming up to settle. I made the mistake of telling him that I have $1500 put aside and hope to sell something this weekend worth 4k. I told him I wanted to try for a lump sum then because I knew that you get a better deal. He agreed with me on that then kept trying to get me to postdate a check. I told him NO Way because I was not sure I would make the sell. Then he pushed for payment settlement. He told me the best he could do was $8000 and he needed to call his supervisor to get that. And that he would call back in 10 minutes. So the supervisor himself called back and he was nicer and tried to make me think I was getting something by saying he got it for 40% so down to $7700. Meantime, I had had time to think about it and remembered that they had offered me 45% at 39 days so really it was not much progress. I said NO and that especially I would not give him my last $1500 when I did not know if I could come up with the rest next week. He gave me all this stuff about end of month and the offer would be gone and I said I know people get 25% settlements and he said not on this card, it is tied to primer or some doublespeak like that…But he accepted my NO and that I would call him next week, Meantime, the first guy has called back 3 times since noon yesterday and he leaves these messages like I did all that for you and you did not accept it, what is going on, etc.. Even tho I told him I probably could not accept it.
So I guess I will call them back next week and see what I can do. I was pretty bummed about it.
Can I ask them to only communicate in writing? Any advice?
I should have about $4500 or more after this weekend and that is close to one settlement –not B of A but all the rest are at 18k, should I just call Chase and see if they take it or am I getting myself in deeper since Citi is the oldest? Maybe I should try to do it just to get the first one done with but then again I can’t afford it, I only can put $1500 per month and they only do 3 months.
Thanks and sorry to be so long,
Kaylee

Quote:

hang in there and keep strong

you were my inspiration :)

Nut

Quote:

Yep : http://www.debtconsolidationcare.com/forums/showthread.php?t=76606

:)

Yes, just what I thought, you are a bit behind me. Will keep you posted.

To update you:

Today I called Citi and the number I finally got somewhere on was 888-309-7367. But they did transfer me somewhere else but I was very brief since I had to step out of work to call. I said 'you have been calling me on a 520 # and I can't answer at work and when I call back it is auto dialer and does not take calls' but I am not avoiding or ignoring you, I am trying to reach a settlement. They wanted to talk about my second Citi that is 90 days late and the other has been transferred to collections at UCB, I told them I was upset about the transfer when they told me they wouldn't do that, basically they wanted 45% on the 90 day one and weren't going to do anything on the UCB one. I told them that I would give them $9000 lump sum for both cards (total balance is 36k). I got someone who is interested and says she thinks she can get it back in house and get the settlement, they will call me Monday. (I will be out of pocket this weekend). But I felt positive about them taking it! Will let you know.
To raise the cash I have $3000 now that I have saved since beginning this journey and stopping pymt. of cards and am selling my classic car this weekend for $6000.
I also have a plan to raise the amount to pay Chase and Bof A but I need to check on some things to make sure it will work and will post on Monday the details.
Meantime, before I could call Citi that sleazy guy from UCB called me back and this time I gave it back to him in his own condescending way. He has a habit of interrupting and then saying "I don't mean to talk over you but..." so I would just wait patiently and do the same in the nicest tone I could. Finally called him on his contradictory statements, like saying a lump sum will get me a better deal and then wanting me to put money down today.
Kaylee

wow - great stuff Kaylee - sorry you are having to sell your car.

one day this will be all done - and we will be able to breath again.!

I have gotten 3 calls today from Citi - couldnt take any of them due to work, perhaps tonight at Dinner i will get one :)

I have an account that I got through Rooms to Go. The return address on the bill is CITI, PO Box 22060, Tempe AZ. The bill says "This account is issued by Citicorp Trust Bank, fsb". Is this the same "Citi" as many refer to in their posts, or is there another "Citi"?

Please let me know as I am trying to settle with them and am looking for others who have had some luck doing so.

I'm not sure but probably a subsidiary. You could ask them though...just say are you part of CitiCards?
Good luck.

Boom boom boom, 3 accounts settled today, one to go!

Good news!
Citi 1 that had gone to UCB was the nastiest and toughest and I had to settle it at 35%. We have talked about the no rhyme and reason thing so I probably should not try to guess but I can???t help it. As I said I talked to them once a week and kept letting them know I was trying to come up with a solution. Then this guy called me from the High Balance Recovery and he was a little rude, my boss walked in and I asked him to call me back in 15 minutes. Well, then I got busy and did not take the call so did not talk to them for 2 weeks. I think this was my mistake because they had told me they would not send it out until 180 days. But I think I made that guy mad and he sent it out at 120. Much harder to settle for me being in collections. This may not be the case with everyone but I get very upset with nasty people and probably cave sooner.
But I did get him from 45% to 35%.

Next I called Citi 2 (still in house). I offered $4500 on 18k balance, they called MAU and got it!!! So I think that is 25%. Woohoo.

Chase was next and the same balance and offer. Got it for $5000.

B of A is all I have left and it is highest balance but I am not late enough, still under 60 days.

But what a relief.

As to the way I got the money???it is a gamble but I had an IRA (you can???t take loans on them like 401k) but there is a loophole where you can take the money out once a year for 60 days. You must put it back in the 60 days but I think I can do it.
I sold my classic car and I have been saving my $1500 per month ever since I stopped paying the cards. I am selling one house and I won???t make much but maybe 5 to 10k and if I can sell it before the 2 months then even tho I won???t have closed on it, that would be enough to get a family loan on it.
That is the gamble part so wish me luck.
But it feels great to be getting this behind me!
Thanks for all your support.
Kaylee:p:p:p

Congrats Kaylee,

Three in one day is a grand feeling.:D:D:D

You won't return to terra firma for weeks!

And you've got the snake-boa for your last one!:cool:

Yahoo Regards,
King "Kash" Jabba Labba

Congrats Kaylee!!!!!!!!!!!!

I am so happy for you! i bet this is a super sigh of relief!

<3

Thanks Nutshell.
Yes, King Jabba is correct, my feet won't hit the ground for weeks, at least in spirit.
But physically I feel like I could sleep for a week. I woke up so much worrying about all this and all day yesterday I was just floating but now so exhausted....
I still have one to go however, B of A but so far no calls. I will keep updating you on that one, meantime will keep you in my thoughts and follow your progression so keep posting.
Kaylee

I would handle your boa/fia for you just because they are SO easy-it is almost fun! If that is what you have left, let it go to about 160 days and just do it. 30% is what you can expect, but you are a good negotiator so maybe you will get it done for 10% lol. I am all done with mine....final payment is Friday except my HELOC is a monthly settlement for 10 months. It has been such an unbelievable experience. First the RE Market knocks me on my @ss and then I found a way to knock it all right back.

congrats kaylee!!! i've done 1 and have 3 to go, but i am hopefull that it will all get done! good luck on your last one!

Thanks everyone and I really like it when we are all riding high!
This forum kept me going in some tough times!
I hope to pay it forward.
Dan, the market kicked me in the teeth too!
Will keep you guys posted!
Good luck all!

hey fantastic!! It happened that way for many of us... nothing and then they all settle on the same day. Kind of like settlement karma was in the air

Really really try to settle B of A before the other settlements hit your credit report. I think that is one of the reasons I had so much trouble with Cap One. they kept saying that I had paid off the others and not them. They seemed to have felt that because those big ones were all gone that I was no longer a bk risk. B of A was rather easy for me so maybe you could get them to settle in the next week or so.

Great job!

Kaylee, been following your story even thro I don't post much.
I just settle with citibank @ 180 days for 25% through the recovery dept..
Before they send it to the recovery dept Citibank wanted 45% PERIOD!!!
Then at 120 day my account was send to their recovery dept, found out when I received a call a few weeks later. I offer 25%, it was all I had since the balance kept going up due to the fees.
He said he would get back to me in 2 weeks. Never heard a thing for another month and right at 180 days he called and said my 25% offer was excepted. He never even counter?
I talked to this guy twice; that's all!
Set tight PLEASE!
It's a waiting game! Patience!

Debt Free, thanks for info. I have really learned a lot and if I had it all to do over I would default on all on the same month but I tried to stagger it because my thinking was I did not have the funds and would need to juggle my payments for settlement. Didn't end up that way and I can see it has hurt me to stagger them, worried about BA since I am only coming up on 60 days with that one and they don't even call but the biggest worry or thing I did backwards is that I save BofA til last cause it is the biggest at a whopping 40k!! The rest were around 18k each.
Keep that settlement karma in the air!
Kaylee

Quote:

Kaylee, so how long was your account with UCB before you settled? My account is about to hit Chargeoff date in 3 days and Citi wont budge from 45% It is a citibusiness card.
I am 99% certain it will go to UCB.

About 2-3 weeks.
I would keep trying to call them back before charge-off, you have 2 days, work the phone. LOL.
My other citi that was not even as late just settled easily at 25%.
No idea what the difference was.

Hi Kaylee,
I settled at 40% I really didn't want to deal with UCB or an attorney or drag it on any longer. TBH I changed my phone number after a month. Did nothing for five months and finally started calling them a week back for settlement and got it over with today.
This was my one and only credit card account that was delinquent and I'm sure UCB/attorney wouldn't not have been shy to sue.
Thanks for your help. :)