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Helping to settle parents debt

Date: Mon, 06/20/2011 - 16:51

Submitted by anonymous
on Mon, 06/20/2011 - 16:51

Posts: 202330 Credits: [Donate]

Total Replies: 5


Hi. Am wondering if anyone can offer some help. I am trying to help my mom write a debt negociation letter to BOA. She is retired and has incurred some medical bills. Her debt is over $20,000. She can barely make the monthly payments but does make them and has no money left over. Will banks like BOA settle on a reduced total debt amount if she is still making payments? She is considering contacting a company like Freedom Debt but they will advise her to stop making payments and put up with being hounded by creditors. They make you open an account with them and pay off the debt after all the scheduled payments have been made. In the meantime, it makes a mess of your credit I am guessing. Any advice would be appreciated. :-PThank you!!!


Hi!
Welcome to the Forums!

Your mother is lucky to have a son like you :D. Usually, creditors refuse to settle the debts unless you get delinquent on them. Why don't you ask your mother to explain her financial condition to BOA? They may agree to arrange an alternative repayment plan with your mother after hearing her case.


lrhall41

Submitted by Good Nelly on Mon, 06/20/2011 - 21:22

( Posts: 2846 | Credits: )


BOA is also very good about putting you on a hardship plan. They will reduce or eliminate your interest (depending) which will lower your monthly payment and help you start chipping away at the principal balance. I would start with requesting a hardship plan. If that doesn't work, then she can stop making the payments and try to settle a few months down the road or, as SoapLady suggested, file bankruptcy and get rid of the credit cards AND the medical bills altogether.


lrhall41

Submitted by OhioGal1 on Tue, 06/21/2011 - 05:24

( Posts: 5253 | Credits: )


Thank you to all for the advice. I'll try that hardship plan first. That's a great idea. I guess it never hurts to ask. They should appreciate a smaller payment rather than nothing at all. If that doesn't work then will try the other suggestions. Thanks again.:lol:


lrhall41

Submitted by on Mon, 06/27/2011 - 18:24

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