debt settlement help

i am trying to sell everything i own, put the money in the bank, and use my 401k to try to settle the debt in at around 50%

danfinance2003,

First, let me tell you that I am very proud to see a consumer like you. All the members of this board are willing to pay their debts. But the spirit you have shown to repay your debts despite of your health problem worth appreciation.

I would suggest you to avail the free consultation offered by this site. The counselor will review all your obligations, your debt amount, the sources of income and then will help you to decide how to utilize all the resource you have. The counselor can suggest you if you should spend your 401K to pay your debts or not. Or, how much of your savings can be used towards your outstanding bills so that you never face any problem in future.

Consolidation seems to be a good option. As it offers you affordable monthly installments, you can do some savings as well. All the best and keep us informed.

Hi Dan----I feel really bad for you. My daughter has bipolar disorder and it is really off the charts. I can't work or have much of a life outside of taking care of her. Unless you have it or have a loved one that has it, you wouldn't totally understand.
Unfortuately, the credit card company won't be so understanding. They don't care why you did what you did with their card, its that you did it and you are responsible for it. I don't mean to sound cold, I'm telling you how they think. Medically, I feel that you should consult a lawyer. Take your medical records and maybe your lawyer can help you make an arrangement with the credit card company with your condition in consideration. Are you currently working now? are you not able to hold down a job due to your condition? are you taking your meds? Please don't sell everything or cash in our 401k. I don't think its that drastic. But I would really really advice you to see a lawyer, considering your condition--you not being able to hold down a job because of your condition, and the results of this shopping spree with no means to pay the debt, I feel the lawyer can help you. I really do. Also, if you can't work, have you put in for any type of SS or disability? You should check into it, if you can't hold down a job because of your bipolar, you could possibly rate some type of disability.
Please Dan, I am begging you, keep us posted on your situation. You have tugged at my heart strings--since I have a daughter with your condition. shirley

Also Stan made a very very good point. That is a good option for you. So see, you have a couple of different options. Maybe check into the debt consolidation program first and see what they can do for you. If it works out, great, if it doesn't pan out then you might consider seeing a lawyer. I'm usually not one to advice seeing a lawyer as I have things I should go see a lawyer about but can't afford it, so usually the first thing out of my mouth isn't to go see a lawyer. But with your situation, I think it would be a good thing. As I said, check into the debt consolidation first---if you are currently working, then that should work out great for you. If it doesn't pan out, then I think you should consider the other. shirley

You are right Shirley. Credit card companies are not so much considerate. If they come to know about your 401K, they will definitely come behind you. On the other hand you will need this money for your treatment and other expenses.

That was a good suggestion by Shirley to consult a lawyer. Keep us posted.

I got a settlement offer from Midland for 50% off the original balance. I want to take this offer, but need to know what steps to take to make sure that the balance that they do not collect is not sold to another company. The offer says the account will be reported as "Paid","and all recovery activity on this account will stop". Is there anything that I should do befor I send the payment.

Where do i get a nice template like yours?

There are several templates for various letters at the link below Charles. :)
http://community.debtcc.com/letters/index.html

mudskipper3 , we don`t allow solicitations on this forum. Especially conspiracy theory web sites.

Wow , that was fast . Moderator already erased it. We must have Ninja Moderators. sweet!!! :D