Advanta Bank is not willing for debt settlement - what to do?

Yes, They filed for BK, but the case is still going on. Here is a interesting read on Advanta:

http://insurancenewsnet.com/article.aspx?id=226936&type=newswires

Anyone working with Allied Int'l Credit Corp? Are they affililated with Advanta or a real 3rd party collector? Will they settle? If so, what %?

[Advanta is NO M

Allied International is real: http://www.aiccorp.com/ I doubt they bought the debt.

Years back there was an outfit called Allied Interstate, and it may have been a sister company under the same umbrella ... it went BK. Very bad reputation.

Who ever has a case go to court in the Tampa Bay area, please post the date/time. I am not above showing up to make a statement about the character and business practices of Advanta.

Too many of these JDB Attny's hope a pray for for a debtor who will make thier life easy and roll over and die. Someone needs to let the Judges know what kind of crook operation was taking advantage of citizens of Hillsborough County.

There's no point in showing up in court and making waves. It will do nothing but waste the court's time. All the judge will look is the "four corners of the contract", period, and you breached it, period. There's no point in hiring counsel to fight it. Why? If you're smart, you would have been judgment-proof well before the suit against you. Then you just let them pound sand and get NOTHING. If they get a default judgment (you a no-show), so what. If you really are inclined to settle, then do at the most opportune time, when they sue and see you have nothing to lien or garnish. Give them 5% at most. Not 20-30% like some of these poor people are doing out of fear and ignorance. Best way is to be silent and low key, like a ghost. The best revenge against these turds is to render yourself invisible - like you never existed. Just an account number with no face. Just like them. And you have no assets - just like them! Play them at their own game.

If TampaLawyer offers to file a friend of the court ("amicus") brief on your behalf or what-have-you, I would take him up on it. Judges are on the point of ceasing to be rubber stamps for the banks, as they are increasingly exposed to the seamy side of the financial services industry.

While some at the top of the judicial food chain may be sympathetic to the banks (one high-level judge wrote of being buttonholed by a banker at a conference and begged "what can we do to get these cases moving?"), others with friends and neighbors who are suffering are seeing things a little differently.

I'm in a neighboring county and he'll hear from me if I need a little help.

All quiet on my end...The phone calls have stopped and no mail. Have not paid in aprox 10 months?

I am also curious how much people have settled with advanta;

I received a letter a few weeks ago that my account is about to be charged off, and I decided to answer the 877 number. I asked to settle for 30% and it got approved. The lady I talked to was very nice and pleasant; I am just waiting for the settlement letter in the mail so I can just pay them the lump sum;

Has anyone here settled for less than that?? I am just curious..

30% is the lowest I have heard of.....Did you offer 30% or did you offer less and then agree to settle 30%

I settled my advanta card 3 weeks ago through cardworks servicing llc for 30% I just wanted them off my back and they would not budge for any thing lower. From my 11 accounts which I have settled 8 of them this people are a nightmare. My other accounts have all settled for under 30% but not advanta. GOOD LUCK:p

Smart creditors (and Advanta/Deutschebank can hardly be counted among them) are settling south of 20%, all the way down to 5%.

Of course, with lawsuits as vanishingly sparse as they are, there may be little harm in omitting to settle.

YMMV

I asked at first how much I can settle it for.. She said 40%; then I told her, I dont have 40% and can only do 30%, so she submit it for approval, got approved in 1 day; just got my settlement offer letter 2 days ago. ( FYI, they can also let you pay in installments like 5 months.) I decided to just pay lump sum..

I think, 30% is a good deal; at least my account did not get charged off..

Yes, i am in the same boat. I want advanta off my back that's why i just settled for 30%. Do you know by chance if Chase settles less than 30%. That's a big one I need to settle in the near future.. am now on my 5th month delinquent.

:p

I know of someone who got 25% out of Chase. But also be warned, Chase is a frequent-flyer litigation-wise.

i've heard nothing else since receiving the charge off letter...no statements, nothing...i could really care less at this point! Lost my job due to illness now fighting for disability. just glad to wake up each day !!! sure beats the alternative!

I am working with chase right now and all they have offer is a 40% on $8,800.00, but that is high I will wait for 30% or less. :p

Phantom Debtor - can you substantiate for us that Advanta has been willing to settle for as low as 5%?

I believe I was clear that Advanta (which is no more, you're now dealing with someone fronting for Deutsche Bank's trusts) was not among the smart ones potentially settling that low. Whatever people are reporting now is what people are getting.

My current recommendation is that if you don't see reports on this thread of people getting served with lawsuits in your area (and I don't even know who would be named as plaintiff at this juncture--which is key because you can't search dockets well without knowing that) keep your powder dry and your money in your pocket, unless you really, really don't have any bigger fish to fry.

If anyone has been served with a lawsuit over an Advanta debt very recently, please identify the plaintiff and let us know how the style of the case reads above the "v" (Your name goes below the "v"). It's probably something like "Deutsche Bank Trust Number somethingoruther as successor in interest to (or assignee from) Advanta Bank".

Here my 2cents

The lowest Advanta Settlement that I have seen since they where taken over by the FDIC is 30%. Anyone out there, please correct me if I am wrong?

I am a perfect target for a Law Suite, because I am paying all my other debits as agreed. The thing is Advanta pissed my off (37%) and I am not going to fork over any money easily ! Maybe 5%-10% max of my 25+K balance.

I was sued by a debt collection company in Aug. 2008 for an Advanta Account. I quit paying them when I found my original terms and asked them for documentation of change in terms. Within 1 month they charged the account off and sold it. I am counter suing for breach of contract and fraud. The nice thing is I was able to find my original contract and terms which Advanta didn't abide by.

"I am counter suing for breach of contract and fraud. The nice thing is I was able to find my original contract and terms which Advanta didn't abide by."

HBC - Can you give us more details as to your exact claims of fraud & breach? I think this is great. It's another way to fight back. Also - did you answer their summons in court or let it go to a default judgment and then countersue? How are you protecting your assets and wages against seizure/garnishment? Not for nothing - unless one finds an attorney to take the case pro bono or on a contingency, 99% of us cannot afford to retain counsel to fight these bastards nor would it make sense when we just can no longer afford payments. We then have no claim against the creditor - and we are the ones in breach. In those cases, I would say just let them get a judgment default and wait out the statute on collection:
http://www.cardreport.com/laws/judgement-sol.html

But, unless you're judgment-proof, that will not work.

Just a little words or wisdom: NEVER NEVER NEVER make payment arrangements with any creditor - it tolls (freezes) the SOL (statute of limitations):
http://www.fair-debt-collection.com/statue-limitations-explained.html

So, either season the debt (wait it out) & settle for pennies on the dollar or wait out the SOL.

I hired an attorney. In respect to Breach of Contract the interest rate they charged was higher than what was stated in card agreement, late fees and over limit fees were higher than what is spelled out in agreement. As far as Fraud demanding payment from these over charges. The collection company was made well aware of the terms of the contract.

It was kinda of amazing in 2007 I filed a complaint with FDIC. Advanta replied to the FDIC and myself stating that my card was based on the LIBOR rate. I replied to Advanta and quoted the section of my agreement that stated that the rate is variable PRIME +6.5% as printed in the Wall Street Journal and default rate was PRIME +10.65% as printed in the Wall Street Journal. I never received a response from that letter and a month later I was getting calls from the collection agency.

Tolling (and worse, re-starting) of the statute clock is subject to many quirks in many states. Some states may choose (Advanta's legal situs) Utah as the statute of limitations, and also to apply their tolling and re-starting law.

All I can say is you'd need to look up the details of Utah case law.

Florida's statutes are tolled if a payment of principal or interest comes in, but for how long? Presumably only for the prescribed periodicity of a single payment (say 30 days in most cases). There is no case law on this.

Advanta you should have taken the settlement I offered. Just met with my Attny and it looks like I will be debt free in 2011.

Spent three years and all of my savings fighting a loosing financial battle for my small business.

Hope you and all of your blood sucking collectors enjoy getting $0 now.

I have hired an attorney.Advanta can not validate the debt with cardworks. They were also autodialing me 3-4 times a day. Keep filing complaints against cardworks and they willl crack.

In what State does he/she practice? Some people on this forum could use the legal help.

Has anyone needed an Attny in Florida? If you are happy with the outcome, please post contact info.

My situation hasn't escalated to that point but should they serve me, I want to be ready.

Quote:

How much are these litigation attorneys costing you guys? Most want a retainer of at least $1500-$2500. That's nearly the same as a 10% settlement for most of us. That being said, it doesn't make sense to spend the same amount of money you'd pay to settle with a guaranteed 100% clean slate and pay some attny who CANNOT guarantee results, not to mention charge you additional fees for filing more motions, etc. If you want to hire an attorney for advice and guidance for a few hundred bucks, that makes sense, but other than that, it's just another case of throwing good $ after bad.

I will restate my rules of the creditor road again:

1) Settle at the lowest possible % you can live with and be done with it.

2) Render yourself judgment proof and let them pound sand with their judgment.

3) Use bankruptcy as a tool down the road to flush all the liens and judgment anyway.

4) Unless you absolutely must, NEVER do a payment plan or start making payments again! It restarts the statute of limitations on suits. Let the SOL expire - it costs you NOTHING and the creditor can do NOTHING.

Phillips and Cohen seem to be calling on these accounts again. It's just not happening for them. Few people are willing to resume paying or settle these accounts. There aren't enough attorneys in the country to litigate all the defaulted accounts for whatever the Advanta successor is called this week.

Phillips and Cohen sent me a letter too. Guess Cardworks = Quitters.

Works out better anyways. Prior to handing me over to Cardworks PnC offered me 35%. We'll use that as the starting point but I'm not payig more than 5% or will wait out the next shmuck collector who comes along.

I have been paying a pittance every month but got a letter stating they were going to charge off my account and want me to call them. I get the calls twice a day, never answer and they leave a the message "please call Advanta bank..." Who is doing the calling? Is it the Cardworks people or Advanta bank? Also, since I got the letter they were going to charge off, is there any reason I should keep paying any amount? What happens after a charge off?

Advanta is dead, done and gone. Chances are Cardworks is the one calling you because Phillips & Cohen uses their own name. I'm getting P&C calls after telling Cardworks to stuff it. I also tell P&C to stuff it. It's all the same to me. They ask why I'm not paying, and I tell them I won't be providing any details. They ask whether I'm working and I tell them I won't provide any details. They ask to set up a payment arrangement and I tell them no. I ask them if they have it in a refusal state in the notes field on their screen and they tell me yes and I tell them fine, leave it there. They say they'll keep calling and I say I look forward to it.

As for what happens after charge off ... well, you have a charge off on your credit. Also the creditor may sue you. May not. All depends on a whole lot of factors. May send you a 1099-c. May still try to sue you even after that, though the law in some states (Connecticut being the signal example) regards the 1099-c as a signed writing under the UCC that extinguishes the debt. If you get a 1099-c then you may use a form 982 to blunt or even negate its effects. Depends on how bad off you are financially.

That is total BS i used a company that got me a settlement for less than 20 cents on the dollar. My debt was 22k and I settled for less than 5K. i would give them a call at 866-833-6398.

As I've said a million time, NEVER keep making payments on the debt! It restarts (tolls) the statute of limitation on them filing a suit against you!

Tolling and restarting are two very different things. Tolling is a temporary time out in the ballgame, Restarting is a whole new ballgame. It's VITAL to know the effect of a payment in your jurisdiction if you're considering making a payment. Also you need to know how long the toll will last if you make a payment, assuming your state tolls and doesn't restart. When the collector is out of state, it's even possible that making a tolling payment toward the end of the statute of limitations period could lull them into allowing the statute to run, assuming they're less savvy then you are in their understanding of the situation (typically they WON'T be less savvy, but this is one hypertechnical area of the law that they could screw up).

P&C Stopped calling and cardworks is back to calling. No biggie. Phillips & Cohen, cardworks, sentry or whoever else that they have make the calls, it is still nothing unless and until a court gets involved. And it seems that happens oh so seldom.

I was wondering if anyone out there has received a 1099 form from Advanta, P & C or Cardworks? My account was charged off by Advanta back in May and I have not received anything yet. I want to make sure with tax season coming up.

Last Thursday I was in the lobby of an Attorney's office waiting for my appointment. All this lawyer does is BK law. While waiting for my appointment the receptionist answered a call and here is what I heard...

"Sorry Sir, we are no longer interested in speaking with creditors once a bankruptcy is filed...."I don't care which credit card company you represent"..."Sir, the time to ask for a settlement was before Mr. Smith retained this office"...."well then perhaps that is something you should have thought about a long time ago"...He may have made you that offer a long time ago but that offer has expired and now you get nothing"

I just smirked and laugh to myself.

Those greedy dumba$$ collectors!

Yes, BK is a great tool to use depending on individual circumstances. Not all of us can or wish to file a petition for various reasons. For example, I would have to wait it out at least another year before I have the option to file because you must disclose and explain any and all transfers of assets in the LAST 2 YEARS. If I lie, I subject myself to a perjury charge. If I disclose, then the trustee has the power to go after those assets. Why invite that scrutiny in the first place. Right now, if one of these creditors like Advanta sues, they would first have to domesticate the judgment, then order a debtor's examination to find out if I'm hiding assets/income - a lot more steps to go through!

Actually, the charge would not be perjury, it would be bankruptcy fraud.

Just got a call from Cardworks it seems Sage capital recovery in NJ has given up. I tried to settle with Sage with offers in the 25% range 3 times and got no answer. I know that Cardworks won a contract with Deutchebank to service the trust portfolio and will try again. We all know the story 34% when Advanta filed BK.

I am a victim of both Advanta's 6% to 35% interest rate hike as well as the $hitty economy. Never late on a loan in my life. Milked all savings to not close shop and layoff dream employee's.

We all know Advanta is a non-secured debt. The most any collector can/will do is harrass you on the phone, or file a lawsuit which they hope and pray for a default by our lack of appearance or defense.

The real debts to prioritize are those that are secured. Especially mortgages. Well get this...after almost two years of foreclosure defense the lender on my shortsale just came back with terms I can accept.

My point to all of you is: If a mortgage company with teams of lawyers calls it quits, let's me settle with no out of pocket $ and no unsecured Note, then a corrupt bk'd credit card company is an even easier adversary.

Do not give up!
Do not agree to payments!
Do not send a partial payment!
Answer a summons and demand verification!
Kick their asses!

I recently received a 1099-C from Advanta for the "amount of debt cancelled". Interestingly, they sent two separate mailings. One to me personally with my social security number, and one to my incorporated business without the EIN number.

I settled with Advanta (Phillips & Cohen) a while back for about 40%. The settlement is reported on Experian as "legally paid in full for less than the full balance... election of remedy - reported by subscriber", Equifax as "bad debt & placed for collection & skip... settlement accepted on this account", TransUnion as "payment after charge off/collection... Settled; less than full balance". Didn't really ding my credit, still scoring in the 720s. Checked to see if this shows up on my business credit - nothing reported on my Dun & Bradstreet report....

The bad news is that it's income unless you do a form 982 worksheet and are able to reduce it for that reason.

The good news is that in some states (notably connecticut) it's a signed writing under the ucc that means the debt is no longer suable in state court. Other state courts should be urged to follow the case ... [URL="http://www.jud.ct.gov/external/supapp/Cases/AROap/AP73/73ap59.pdf"]Franklin Credit Management Corp. v. Nicholas [/URL]



Keep in mind that in states that have not recognized the 1099-c as a state-law forgiveness of the debt, the case law is sometimes in the major commercial context, and not the consumer context, nor was the UCC invoked ... distinctions that could make a difference in your own court case even if there is existing case law against your position.

You only have to worry about reporting 1099-C CODI (cancellation of debt income) if you're solvent (assets in excess of liabilities). If you are INsolvent (liablities exceed assets) then you're in luck, as CODI is not includable as income on your return! Talk with a tax pro that knows his sh*t.

I actually don't mind paying taxes on the 1099-C amount. What I objected to was paying Advanta any more after their illegal rate-jacking. Did not end up hurting my credit score that much.

I encourage others in battle with Advanta to just quick paying and wait for what you consider is an acceptable amount to settle the account. They dug their own grave. I hope Dennis Alter and the other Advanta mucky-mucks get some type of karmic return.

Joseph A Banks,

You had me at hello with that one! I couldn't have said it better.

BTW folks now that PnC has my account back from Cardworks the new offer is 45% of the alleged balance.

What are your thoughts if I mail them a letter from my BK Attny offering 5% or Chapter 7 (aka nothing)?