What can we expect now?
Date: Tue, 05/24/2011 - 20:20
BoA - $9,740
Citi - $6,057
HSBC - $9,689
What are the chances that these creditors offer a settlement at some point? We have been current on our payments for years but we have just ran out of money to continue paying all of our bills. We make too much for chapter 7, does this affect a companies willingness to settle? Knowing I cant file chapter 7 what incentive do they have to settle? I think by tapping into our retirement I could pay 60% of these 3 accounts. I really don't want to touch our retirement but I see no other option at this point. Thanks for all the help so far and I'm sure I'll be back with more questions as this progresses.
Hi! Welcome to the forums! I would not advice you to file bankr
Hi!
Welcome to the forums!
I would not advice you to file bankruptcy. Neither would I suggest you to tap your retirement savings. First of all, contact the 3 credit card companies and explain your financial situation to them. They may agree to arrange an alternative repayment plan with you. If this option does not work out, then you can go to a reputable credit counseling agency. They may help you to handle your debts efficiently. The credit counselors will suggest you effective tips and strategies to manage your debts.
Montezumasdaddy, I am/was in your exact position. I made the cho
Montezumasdaddy, I am/was in your exact position. I made the choice to stop paying on all my unsecured debts in Feb. in hopes of settling the accounts before charge off. It was a tough decision, as I like you struggled for years to stay "current".
I am about 90 days in and have already settled 2 of 5 accounts at 30%. Still working on the others, but they are currently offering 50% settlements at 90 days.
My credit score is in the toilet (went from over 700 to below 600), but at this point I don't care.
Don't ever tell them how much you make or how much you can borrow, just keep mentioning hardship. They will settle eventually. The hardest part is avoiding all the calls. Since you're dealing with several creditors, expect to get robo-called 5-7 times a day. Have a plan in place for that before you start or the calls will drive you mad. (hint: before you stop paying go online and change all your numbers to a google voice number).
Most of all, keep the end game in mind and know that your family will be in a better place when it's all over.
Just my $.02
