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Here is our situation, any help greatly appreciated.
We are in the process of filing for Bankruptcy. Lawyer is working on all the paper work. In fact they called yesterday and said its all ready, I just need to come in and sign the paper work.
Well on Wed of this week, my Aunt had called and said that I will be receiving $17,000 from my Grandmother when she passed away in May.
I have a house with CHASE Mortg. that is scheduled to foreclose Sept. 24th. This is not my residency, it used to be, then we moved out of state and we rented it out. The insurance has risen so much, that after we rent it, we only wind up with $20 to save for repairs. So we decided to either let it go, or sell. Up till yesterday we have no luck selling it. But yesterday someone looked at it, and loved it and said they would have 40,000 to put down in two weeks, and hope they can get a loan for the remainder $20,000.
This will leave me with Maybe $5,000 after it sells.
But Chase just called and said for me to keep my house out of for-closer , I will now have to pay Attorney fees

My lawyer suggests that I still file bankruptcy and wait on filing and spend the $17,000 before I file.

But after coming across this website I am wondering if I might be able to settle with the credit card companies?
My last payments were made in Feb
I have only received ONE letter from OLD NAVY offering a settlement. Maybe because I told them we were filing for bankruptcy.

Here is what I have, a lot of small cards that all add up.

Old Navy $775
Maurices 795
JC Pennys 809
Chase 1,041
Chase 1,406
Chase 6,688
Capital One 2,315
Target 2,965 (When I went to the website this one said it was in collections)
Discover 3,310
Sears 3,695
Bank of America 4,635
Bank of America 7,993
Cabella's $700

These are all 180 days past due

I just really need some adivce. How would I even start this process? Do I just call the credit card companies and ask the first person I speak to, if they could offer a settlement?

Thank In Advance!!

And I'm not sure of when I'll have the $17,000 in hand.

My Aunt said it should be soon, so should I wait till I have cash in hand? Which may be too late since they are all at least 180 days past due.

And when I call the credit card companies, Do I tell them I received a lump sum from my Grandmother's death?

My husband and I no longer have our jobs. He is trying to start working on his own, so there is no cash to make monthly payments on these credit bills.

Sub: #1 posted on Sat, 08/24/2013 - 07:00


The 17k will effectively make you not bankrupt. I worry about the attorneys advise cause any payment made to a creditor 6 180 days before filing more than $600 will be taken back from the creditor. Where you looking at 13 or 7??

Sub: #2 posted on Sat, 08/24/2013 - 07:29

Moderators Cum Industry Expert
(Posts: 17319 | Credits: )

We were going to file chapter 7

The attorney was not saying to pay the credit cards, he was basically saying if we "spent" the 17,000 ( could give it away, vacation, or whatever) they wouldn't be able to take it in the bankruptcy.

But I just thought that the 17,000 might be able to give me something to work with to pay a settlement on the credit cards

Capital One just called and said my account is going to charge off on Monday unless i pay them $53. She didnt offer any kind of Settlement at all, is that normal? Should I have asked for some kind of settlement?

If I went this route, would paying $53 take away the chance to settle? Or do I just let it charge off?

Sub: #3 posted on Sat, 08/24/2013 - 07:42


Hello Kim, did you settle? or did you file?
If you haven't filed, please email me, you don't have to give them any money. This is not an advert or some sort of settling marketing, I am Serious.
Personal Email Removed

Sub: #4 posted on Fri, 01/31/2014 - 23:57

geraldcella geraldcella

(Posts: 4 | Credits: )

gerald is the ultimate scammer.the name cella is familiar here as that name was tied to FEDERAL DEBT RELIEF SYSTEM.a scam touting debt termination.there is no such is a lie,and again the ultimate scam.

Sub: #5 posted on Mon, 02/03/2014 - 06:11

paulmergel paulmergel
Moderators Cum Industry Expert
(Posts: 15514 | Credits: )

I would seriously talk to your attorney again - you have a lot of cards and each of them would be a seperate conversation -- certain ones sue earlier also -- like citibank, capital one -- you also would be getting a 1099 c on all the written off debt which would be claimed as income on your return -- which would be taxable to the irs -- I ended up receiving a tax bill after I had settled w my creditors -- its tricky and you have to see what your attorney believes is the best for you -- your credit is probably not great right now -- and you will need money to file for the bankruptcy -- good luck with whatever decision you make

Sub: #6 posted on Mon, 03/03/2014 - 13:33

chrissyhen1 chrissyhen1

(Posts: 152 | Credits: )

Hi Kim,
I am on this thread after 3 years because I am facing similar situation now. I had given $ 20,000 to one of my close friend ten years back just to help him in establishing his business. At that time my monetary condition was quite well. I received phone call from him that he is returning my amount and feeling very thankful to me. Now my condition is that I am under heavy credit card debt and my lawyer told me that I should declare myself as bankrupt. I told him (my lawyer) about the telephonic conversation, still he told me to file for bankruptcy. I discussed the matter with credit card specialist and they told me that bankruptcy will be the last resort, no doubt it will clear all my debts but it will make me handicapped for getting loan for more than 5 years. What ever amount I'll receive it will be used in clearing all my credit card debt, further if I'll take the help of debt negotiating companies they'll also negotiate on my behalf with my creditors and thus debt amount will become less.

Sub: #7 posted on Fri, 07/01/2016 - 02:38

elisa.gracedd elisa.gracedd

(Posts: 7 | Credits: )

Credit card specialist??? Your mean a debt consolidator.....they are only looking out for themselves, not your best interest. Listen to your lawyer. You can get a mortgage within 2 years. If your credit is already trashed, filed BK isnt going to make it any worse.

Sub: #8 posted on Sat, 07/02/2016 - 10:51

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