Post Charge-Off Experience and avoiding Judgments

Advanta and Bank of America quickly sold off the accounts to junk debt buyers after charge-off. Chase and Cap One still own the accounts but are using collection agencies. Discover still owns the account and has not used a collection agency (all now at 14 months after date of first delinquency.) I don't have accounts with the others listed.

I had two chase accounts. Both went to CA's but Chase was still the creditor. One was settled in Oct and the other will have the final of three settlement payments made this Friday.

Bank of America- Had two accounts. Seemed to go to FIA Card Services before charge off. As far as I can tell FIA Card Services is the same as BoA but I'm not 100% sure.

Both went to CA's with FIA still as creditor. I am settling one account with 6 payments to a CA that went into effect last month. 50% on almost $13,000 balance. Though I received a dunning letter from a local debt collecting law firm this month on the same account! DV'd them and heard nothing back. But looks like FIA Card Services was getting ready to sue me.

The other BoA was sent to a couple CA's, most recently Brachfeld and Associates ($3,000 balance). They have not responded yet to my DV they received March 2nd so that one is still up in the air. The first CA I had offered 50% settlement over 3 months but they told me the account had been "recalled". This was at the end of Jan. They had it for 2 months I think then it went to Brachfeld. So now I'm waiting for FIA's next move.

Juniper (Barclays)- I had two accounts. These were my best settlements. Both went to CA's. One account was sold to a JDB but the other they kept. They actually sent me a letter and offered me 40% on almost $14,000 balance. I was able to get that over two payments.

The one sold to the JDB was almost $12,000 balance. I offered $4,000 lump sum and it was accepted.

I stopped paying in May 08.

Others I did not have. And FWIW..Citibank sued me in Oct and Target sued me in Dec!

Discover still has mine, it will be 3 years this June 09'....the SOL in my state is 3 years...so I'm curious to see what's going to happen....

Don't have any of the other accounts you mentioned.

i have experience with capital one, it seems they waited awhile but finally sold to collections (though to be honest, they used nelson watson and i still do not know if capital one owns them or not). i had it validated, not as validated as i would liked but captial one is pretty quick to sue so i settled with the agreed amount. to be real honest, it was not that nice of a settlement. :(

Thanks for the input. Cap one and Discover are both about 155 days late for me and seem to be the toughest to settle with (personally and it seems with those posted to be same experience). Even this close to charge off they still are offering no more than waiving 3k in fees (both have 17k balances) and both are offering 5yr 1% repayment programs. It seems like they have taken the same page out of the rule book.

My problem is I'm not cash flowing enough monthly to barely pay mortgage so what good does it do to take a 5yr. repay plan. I've got family who will help me out if I can settle but I'm afraid telling them that has caused them to think they can get family $ and monthly payments. Arrggh. Trying to level with them does no good.

It is probably heading towards write-off. I was hoping to hear that after write-off at least the settlement offers got better or something. It does not appear to be so.

If anyone has better info or worse info let me know. Thanks. I'll keep others apprised of my situation too to see if it helps anyone.

I had RBS and something called Upfront Rewards. Chase bought Upfront Rewards after I was already charged off. I think Chase must have assumed the entire company and I went along for the ride but I am not sure. The original balance on both was approximately 5,000 each. They balance they claim I owe now on both is in the 9,000 to 10,000 range. I have received a number of settlement offers from RBS and they are always 2,800 or so. If I were to actually accept an offer I probably would not go over 1,500 or so do to the ridiculous taxes I would have to pay on money I never received. My tax rate is 15-20% which means I would pay at least 1500 in taxes.

I am almost 2 years delinquent with on both cards. I have people representing RBS mail and or call about once ever 3 months or so. If they get my phone number I send them a cease and desist. The CA has changed hands at least 6 times. Neither company has sued. I don???t know what would happen if they sued since my case is a bit unusual. My wife opened the accounts in my name before we were married and without my knowledge. I never signed anything including a contract or any credit card receipt. Anytime I talk to someone on the phone I claim no knowledge of the accounts and demand they send me a signed contract and at least one signed credit slip which they have never produced of course. I also send them a DV letter along with the cease and desist. The best I have received is some random account bills.

Since my wife did open these accounts and I probably did benefit from them I will probably eventually settle them if they never sue. They are on my list to pay off under a couple other things. I have paid off all of my unsecured debt except these. I intend on paying off a car loan I have before I pay these. After that loan all I have left is these cards and the mortgage.

Dollars&Since,

Just for fyi I'm an accountant. You won't pay tax on the charge offs if you are insolvent (more debt than assets after the settlement).

Personally since my house is easily documented worth hundreds of thousands less than my debt I'd love to unload all my $125k in CC debt. Give me that 1099-c baby! I won't have to pay a dime in tax. (Unfortunately that is because I'm worth less than nothing!)

You can confirm with your own accountant but that is the way I understand it.