Here is a great opportunity for you to ask any debt relief or credit related question and receive input from an experienced expert! Ask a question about settling credit card and other types of debt with your bank, a debt collector, or a debt collection attorney. Are you dealing with a debt buyer? Not sure what you are dealing with? Submit your question and CRN will help you with detailed and useful feedback.
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You can ask just about any debt and credit related question here and get a dedicated reply by email. This is not published anywhere on the site. Sometimes I reply with questions of my own before I can offer actionable feedback.
Hi,
I have a debt being held by a debt buyer (Mediation Recovery Center ) for about $1500. I suspect this debt may be past the 4 year SOL in Calif.
It is past the 30 day initial limit to send a verification of debt letter. Some have said that sensing V of Debt letter may single me out for a lawsuit
Should I send this to the debt buyer or are there other ways to determine the age of the debt ?
If this debt is under the SOL , I’m willing to make an offer of settlement and have $ set aside
I just want to determine my next steps
Thank you !
Who was the original creditor, and do they show on any of your credit reports currently?
It’s been a few months since I’ve received a letter from the debt buyer I Dont know who the original creditor was. The debt buyer has begun to start calling me again
I’m wary of talking to them but should I at least call them to determine the original creditor ? Will they give me the date the debt is stemming from ?
I’m sorry if these are silly questions but I’m just dipping my feet into the water on this
There are very few silly questions when it comes to debt collections.
I would call them, or send the debt validation request letter, and determine who the original creditor is, and if the debt is even yours (it may not be), before doing anything else. They should provide you with the information you need.
Does Mediation Recovery Services appear on your credit reports?
I’ve just placed an order for copies of my most current credit reports. I will call them when I have a chance to look at them
I’m a bit wary of calling them but I expect it to be a fairly short conversation . Basically, just getting the debtor information. Of course, we all fear being strongarmed
I know that fairly few accounts go to litigation. I just don’t want to do anything that will accelerate that process even though I suspect the debt, if valid, may be beyond the SOL.
We have all heard the horror stories of unscrupulous companies suing for old debts without much documentation
Well, I received all 3 of my current Credit reports.
Only acct currently in collections is Comcast for $183 placed in collecctions in Oct 2013
And currently with a collection co which is not MRC
One credit card acct in Good Standing but closed in 2007 from Capitol One which I remember paying off
so…. I’m thinking this is an old debt
The Experian report showed MRC with a review request from 6/2013 and then 08/2014.
Thoughts ?
Thank you !
Brian
Based on what you shared, it is probably something from years back that is too old to show on your credit reports, which would mean it is way passed the SOL to sue in California.
You can ignore there collection efforts, or send a cease communication letter when certain they cannot sue. Use certified mail return receipt when sending letters to a collection agency. Keep a copy of your letter and the green return card you get back in a file.
Hi Michael,
I am looking for some advice about debt I have accumulated in the US before I return to my home country. I am not making enough money to stay any longer, there just isn’t enough work within my narrow visa field.
I currently have credit card debt of the following –
Capital One $1300
Citibank $2500
GE $1500
Chase $1500
I have been working to pay off all these cards and have reduced the debt by around half. All accounts are in good standing, although Capital One is overdue by a few weeks. I spoke with Capital One to try and organise a settlement, explaining that I will not make enough money between now and when I leave to pay the full amount and wanted to leave with it being all sorted out. Because the account is not delinquent, they can not offer a settlement. I haven’t called any of the other credit companies because I assume the same applies. I can continue to chip away at these bills but by the time I close my US bank accounts in December, they just won’t be fully paid off.
I also have student loans, some of which are actively being paid off (to Citibank & Discover aprox $22,000) and one which has been sold a few times and which I lost track of at some point and then it went to the debt collection agency NCO, that is for $50,000.
I plan to pay Citibank and Discover from home, via paypal. NCO is another matter. I have tried talking to them about what is the best course to take and they have basically been pretty awful. They said they couldn’t help me unless I proved to them that I had applied for a loan through my bank to pay off the debt in full. That was an absurd prospect, and I would in no way have been approved. My credit is bad because of the NCO delinquency and no one would loan me any more. At some point I spoke to someone there who agreed to take $100/month in payment. I received advice from a lawyer that it was a bad idea to take that deal because it would never be enough to pay off the loan and it would reset the statute of limitations on student loan debt. The debt was originally from a private student loan company whose name I can no longer remember, it was sold to IDAPP before I even completed my degree and then off to someone else before ending up at NCO.
I really don’t want to just abandon all this debt, and I am afraid NCO will pursue me in another country also. Any advice you have would be greatly appreciated.
Thank you.
MD.
You generally need to have missed a few monthly payments before a legitimate settlement negotiation can occur. And in with most major creditors like you list, your best opportunities will come between 150 and 180 days late.Read more about settling with original creditors in that section of my guide starting here: https://consumerrecoverynetwork.com/settling-credit-card-debt-is-a-race/.
How much money can you pull together by December in a last effort to settle your credit card debts before you leave?
What state are you living in?
What is the likelihood you will return to the US at a later date?
Thanks for your speedy response.
I believe I would only be able to pull together around $2000 before I leave, things are hard and the costs of moving exacerbate the situation. It doesn’t seem like that would be anywhere near enough to settle the debts. Possibly I could try for more.
I am living in New York city. I am honestly not sure what the likelihood is that I will return to the states. At the moment it seems unlikely although closing the door forever is a bleak prospect, especially if its because of debt I should have been able to pay back in the first place.
It is not that you close the door. If you had said you plan on coming back in 2 years, my feedback would be different is all.
If you have 2k to work with right before you leave, you can perhaps settle a debt or three before leaving. The issue will be that you are only 4 months late, and not closer to 180 days when the better deals are likeliest to be negotiated. I cover settlement targets for all but one of your creditors that still apply right now here: https://consumerrecoverynetwork.com/review-top-7-credit-card-lenders-best-offering-debt-relief/
GE Capital target is 40% to 50% more commonly, but depending on the age of debt, and agency you deal with, there are instances of settling for a bit better savings.
You may be able to settle with GE Capital early if they place your account with a debt collector early. If not, you can settle with the debt collector later, and from wherever it is you land. Do you plan on using a mail service or friend in New York to communicate mail to you? You can also use one of those mail drop services where they scan and email anything that comes to you. It would help you stay organized while you try to save up for the last couple settlements that the 2k won’t cover (I estimate you will need roughly 3200 to cover all of them.
You may come back to the private student loan waiting for you, or there may be developments with unpaid private loans that develop in the future that will benefit you. Keep saving up money in order to be prepared for any beneficial options that come up,or for when you would return to the US.
Thanks again.
Perhaps I can keep an account open for a while and do the negotiations at the optimal time abroad.
Do you know if NCO is likely to seek legal action against me overseas?
Highly unlikely to be sued abroad for debt originated in the USA.
Hi Michael,
I put myself in a position of a serious shopping addiction. I’m stressed out & unemployed. I have many store credits that have closed & debt collectors calling me hour by hour during 9 am – 6 pm.
Any advice on how bills should be payed? Should I focus on larger bill amounts first or pay the ones I am able to work on first?
-Timmy
Please post the name of the creditor, the balance owed, and when last paid. With that information I can offer the kind of feedback you are asking for.
Also include what amount of money you are confident you will be able to dedicate to your debts each month.
Hi Michael,
I’m debating if I should pay my balance from Bill Me Later. Long story short, because of some tough time in my life, the last time I made any payments to them was last year sometimes mid-summer. I recently gotten a letter from a collection agency (SIMM Associates, Inc) in which stating that they are representing BML in regards to my outstanding balance of $2,400. Now I also found out that BML does not report to the 3 credit bureaus so they don’t affect my credit score. Now with it being in a collection agency, will it affect my credit score/report? If it does affect my credit, it would be wise for me to pay it off correct? If it doesn’t, what should I do with the debt? Thanks.
Sarah – The debt could end up on your credit reports by a debt collection agency, or a debt buyer, even if Bill Me Later is not reporting it now. Is your number one priority your credit scores? If so, negotiating a settlement with SIMM Associates will make good sense. You get them to agree to settle the Bill Me Later account for less than what you owe on it, and potentially avoid the negative showing up on your credit reports.
Hi Michael,
–So are you familiar with United Recovery Systems collection agency? Are they pretty difficult to deal with, meaning they are likely to sue if I don’t choose to take the settlement offer with them at this point in time?
–Do you have any thoughts/assistance you can provide regarding issue 2 I addressed in my initial post above?
Thanks so much!
DMG
I am indeed. You have no risk of United Recovery Systems trying to collect from you in the courts. The settlement offer you got from URS is about as good as it gets.
Both the Citibank, and the account with your current bank, are extremely unlikely to remove any negative reporting they are making. There are folks that encourage sending a “good will” letter where you politely request negative items be removed, or adjusted to reflect less poorly, but banks are not going to respond well to these (Citibank anyway). What is the name of the other bank?
Negative credit reporting, like resolved accounts that reported negatively briefly, are factored more heavily into your credit scores in the first year and two from the occurrence.
Thanks for your help, Michael
Hi Michael,
I actually have 2 different issues I wanted to ask you about….
Issue 1: I have a charged off Chase credit card in the amount of $4,846.52. It’s been sold to collection agencies and is now with a collection agency named United Recovery Systems. I got a settlement offer letter from them last week offering a settlement of $969.30 (total) in 3 payments over 3 months. While this is significantly lower than the amount of the debt I owe, I’m not sure if I should take the settlement.
-Is it worse for your credit report/credit score to settle for a lower amount than to pay the full amount that you owe?
-I’ve read/heard that you have to pay taxes on the leftover amount you don’t pay in the settlement. Is this a good or bad thing?
Issue 2: I had a Citibank credit card that was charged off, and instead of settling, I paid the full amount of $2,042. I finished making the monthly payments back in November 2013. I wanted to know if it’s possible to get this negative mark deleted from my credit report? I’ve read about some success stories in getting negative marks deleted, although I know many people are unsuccessful in getting such a thing done. Would I have to reach out to Citibank about getting the mark deleted, or the collection agency I paid the full amount to? I also had a credit card with my bank in the amount of $2,194 that was closed due to me not making payments on it, but was never charged off (thankfully!). It stayed with the bank and I paid that card off in full by making monthly payments, of which the final payment was made in March 2014. While it shows “pays account as agreed” on my credit report, it’s still showing as a negative account. Is it possible to get this deleted as well?
I appreciate your help with this matter!
Best,
DMG
There is not much of a difference between settle for less, and paid in full, as far as credit reporting goes. This late in the game, and with United Recovery Systems collecting, getting your credit reports to show zero balance owed is the main goal. If you can save money when doing that, it makes sense to save as much as possible.
Paying taxes on forgiven debt can be a good and bad thing… it depends on your perspective. It means you saved money on the debt, so good in my opinion. But you may not even owe a tax on the debt if you are deemed technically insolvent. Read this report for more on that: https://consumerrecoverynetwork.com/debt-forgiveness-taxes-settled-credit-card/.
You can learn more about these collections on your credit reports, and how long they will stick around, or even impact you after a couple years here: https://consumerrecoverynetwork.com/question/collection-accounts-age-off-credit-reports/
Michael, just wanted to add a note to the last reply to you asking how much is owed on the
judgement? I’ve done some checking on court’s terminology in attempts to understand
the response I got from the court (about ten months not elapsing since the filing of the
original pleading) – I understood this as meaning if their was a response from either party
concerning the case within ten months ( the time limit in these types of civil cases) – if there
was NO response in ten months (in this case from the Plaintiff) to my Answer filed, then
the case would be dismissed. I DID NOT receive any response during this period, instead 1
year later from the court for: “Order Vacating Notice Of Lack Of Prosecution” telling me that
ten months had NOT elapsed since the filing of a pleading in this case. – – – Do I need to
address the court in this matter Michael? I appreciate your time! I don’t know if you can
answer this but I’m asking.
It would appear that the court made an error, and then attempted to correct it. From that… and/or from there, the attorney for Capital One would have filed additional entries with the court, and failed to provide you with notice.
What is the name of the collection law firm?
You would generally contact the firm to settle this, if they no longer have the file, contact Capital One. But you may have a shot at vacating the judgment even though this amount of time has passed. You will want to consult with an experienced debt defense attorney about your options in this regard. Your initial consult is normally no cost, but the cost to retain the attorney to attempt to vacate the judgment is a concern. And you will want to compare that to what would be roughly 50 to 60 percent of the judgment balance today (what you may be able to realistically settle for).
What is the name of a large city near the court where the judgment was entered?
Michael, you asked: What is the name of the collection law firm?
The law firm for Capital One was Bray & Lunsford, P.A.
Copy of the “Order Vacating Notice” I received went to Roland Kaiser of the law firm.
What is the name of a large city near the court where the judgment was entered?
The firm was apparently out of Jacksonville, FL. according to all the paperwork.
I see the same error Michael. In any case, I see that the time limits for responding/serving notice were not met on the attorney’s end which I should support my case in having the judgement vacated.
I could file a Motion and Declaration to vacate Judgement. I then have to cite reasons to support the motion.
It’s what I understand basically from recent research. Do you agree? As far as retaining an attorney, that’s out.
Don’t have the funds for that. I would do it on my own based on the merits of my case.
“If” the court granted a vacating of judgement, would this mean I would not owe anything?
Vacating a judgment that is part of the court record a few years is not a gimme. And may be a waste of time in some state courts, more than others. The reason to talk about the process with an attorney whose practice involves consumer debt defense is to get feedback and assess how your courts have ruled on similar circumstances in the past. You may learn something that is greatly encouraging, or may learn that you can save yourself a lot of time. Your initial consult (fact finding effort) is typically no cost.
Was the court in Jacksonville? It is best to talk with an attorney who is likelier to work in the same court as where the judgment is entered.
Thank you Michael for your reply! The copy of the Final Judgement I pulled from Florida’s
county court records was dated May of 2009. Principal sum of 4456.03, incl costs of 276.50 and
atty fees of 540.00 + pathetic pre-judgement interest of 2563. This was in 2009. Can imagine
what’s been added to it. We have some funds but not much. My question: Do we contact the
banks’s attorney or the bank itself to offer a settlement? Also Michael, please if you can “decode”
what the court’s reply meant that I posted. Again, this was the ONLY reply I got a year later after
filing my Answer to the court. Can’t I have this case thrown out? Re:
ORDER VACATING NOTICE OF LACK OF PROSECUTION – This cause
having come before the court and the court finsing that ten months had not elapsed since the
filing of a pleading in this case and therefore the notice of Prosecution was entered in error, it is thereupon…Ordered and adjudged t6hat the notice of Lack Of Prosecution entered herein
on Oct 20, 2008 is hereby vacated of record and shall be of no further force or effect.
Thank you!
Sued by Cap One back in 2007! Sent ANSWER accordingly on time to the courts in Oct of
2007. Received 1 (ONE) reply from the clerk of the court more than one year later in Oct of
2008, letter entitled ORDER VACATING NOTICE OF LACK OF PROSECUTION – This cause
having come before the court and the court finsing that ten months had not elapsed since the
filing of a pleading in this case and therefore the notice of Prosecution was entered in error, it is thereupon…Ordered and adjudged t6hat the notice of Lack Of Prosecution entered herein
on Oct 20, 2008 is hereby vacated of record and shall be of no further force or effect.
– When I read this years ago, I interpreted it then as being done. Not the case! It was only
when my wife and I tried to prequalify through quick & Loan to see if we could get financing
down the road to buy a house. They told us that we had a judgement in our credit records.
I since went to reserach this, went to the courts county records to pull a copy of the judgement
to be mailed to me. We since received the copy. It was a Final Judgement. Cap One
moved for summary final judgement and stated that the “court finding that the defendant, having
failed to appear” is indebted to the plaintiff. Again, I received ONE reply a year later from the
court after filing my Answer to the courts. I never received any summons to appear for a
“show cause” hearing (which I researched would have been the next step after filing my
Answer, correct?) Instead, a default judgement was issued against me! To discover this years
later is monumentally disturbing! My wife and I just don’t know what to do at this juncture?
Can we try to settle? Incidentally, we originally received notice of Cap One’s suit through
their their reprentatative law firm. This all occurred while we lived in Florida. We now
reside in MA. – I learned that default judgements occur more often than one would think,
for any number of reasons.
Please help. Your reply and assistance is greatly appreciated.
What is the amount owed on the judgment today? How much money can you raise to settle in a single lump sum?
Hi, I’m in very bad situation because of lot of issues financially & personally. Now i’ve huge CC debt on my head which i’m currently not making payments due to my circumstances. I’m being called, harassed with collections. I’m being sued by several companies for not making payments. What are my options? Do i need to respond to the summons or ignore? Currently my finance position is very bad that i lost everything because of severe financial problems. Even if i respond, i’ll probably get a default judgement. No savings or property on my name. If i ignore the summons, i heard that the collectors will get default judgement against me. What happens if they get default judgement as i’m unemployed without a property. Can they garnish my wages in future when i get an employment or put lien when i purchase property in the future? How long is the judgement valid? For lifelong or limited time? What about 401k? Can they go after that? Please advice. Thanks for your help.
Joanne – Review the reader Q and A, and the many comments that are informative, on this page: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
If you have questions after reading through that page, post them in the comments and lets go from there.
Hello, I have three items listed on my credit report that have been there since 2007. They are credit cards that had an original limit of 300 dollars. These accounts have apparently been sold and resold to debt collectors and the amounts have increased dramatically. The opening dates for each of these accounts on my report show this year and last year. Which the orginal date for opening these cards was in 2007. I understand that a debt can be sold to a collection agency; my question is after 7 years does that automatically go away on your report? If so how to I correct this problem on my credit report? Also, I was married and my spouse added my name to her credit cards, I was issued a card. The cards where issued with her credit. We have been divorced for a few years and the balances of her accounts still show on my credit report, How do I correct this so her balances do not show on my credit report?
dg – Your ex wife will need to speak to her creditors and remove you as an authorized user on her accounts.
Are those original creditors from 2007 still showing on your credit reports, along with the collection agencies reporting them? If not, do you have a copy of an older credit report with them showing?
The debt collectors that buy up those unpaid debts do not get to report for their own 7 years. The credit report entries should fall off as each collection entry coincides with each original creditors reporting (an exception would be if you were sued and a judgment entered in court against you).
Given the time frames you have shared, if the original creditors are no linger on your reports, the collection agencies should not be either. You can dispute them as passed the time allowed to appear on your reports.
Hi Micheal
I am being sued by Capital One, via Hyatt, Hyatt & Landau of Miami for ~$1500. The last payment made on the card was in Sept 2009. The case was filed in 2012, but I was not served until 2014. I went to a mediation session in May which did not go very well to negociate a lessor amount and a payment plan. I think the case is dismissable due to the statue of limitations within FL (my residence) having been reached,which is 4 years from date the demand for payment was made (last ‘bill’). The amount is so small that I am on the fence if i should just pay the $1,500 and get the case done and over with or run my luck at trail (July 22, 2014) and present the statue, bill from 2009 and case precedence showing similar circumstance. The other option that I have is to contract a lawyer to represent me in court, but because of the small amount, an attorney may cost me that is not more with the possiblity of lossing and then having to pay the suit plus their attorney fees. HELP!! I don’t know what to do.
If you are certain that the SOL expired, fight it, and use an attorney with debt collection defense experience. You should at least consult with the type of attorney you need. Most offer a no cost initial consult. You may even learn that they will take your case free of any retainer if they see collections violations worth pursuing.
I can email you contacts info to some attorneys if you like?
That would be great! Please send me their contact information and I will contact them.
Hi. I am looking for advice. Just found out that Calvary SPVI I llc is suing me for $7200. I have not been served yet and only found out about it because an attorney sent me a letter saying he could represent me. I have no idea who this company is but have found numerous issues and complaints concerning them online. Are there certain things they have to prove or document that this is my account? I did have an identity theft issue several years back so that is a possibility, or it is an old account I had through my business, but was opened in my social because I did not have a tax ID yet. Account was updated with business ID when I got it. However, I fell victim to a scammer who worked with my business and was forced to dissolve and close. It has been over 4 years at least since I last paid on that card, and I just figured it was gone at this point, or uncollectable. Have you dealt with this company before and what are my options at this point? I do not have the money to pay it, and cannot borrow from anyone to pay it either. This is a Maryland civil case presided by I guess a collection attorney? Thanks!!
Michelle – Calvary LLC is not too hard to deal with when you want to resolve a debt they bought. If this is a result of identity theft, you should not have too much trouble either. That is the first thing you need to do… find out the nature of the debt. You can go to the court you are being sued in web site and search for your name in filed cases (if they allow this on the site), or go there in person and look up the case.
Post an update when you identify the debt as yours, or it resulting from the ID theft, and lets go from there.
Please advise! A credit card co got a judgement on me. I am disabled, do NOT collect disability, or work. I have a husband and 3 grown children. This week they levied our joint online bank account for $1600., put a hold on our local bank account for $45.00 AND at that same bank holding one of my sons accounts for $650. ($100 says legal fees)!!!!!
We have stopped my husbands direct deposit to the online account, and will close the local bank account if we can tomorrow. My questions are: can my husband open an account in his name only without them touching that? How can I get my sons account money unfroze? I have nothing to do with that account, although we are connected online so we can transfer monies between us… Also that same situation is with my mothers estate account which I am exec for, I am taking out that money tomorrow if it is still there.., I was told they can touch that.?
I want to settle this now. I can borrow the money from my sister, who do I settle it with and do I have to pay the entire amount!
Thanks so much
Eyelene
I am in nj
Who sued you (name of plaintiff), and what is the total amount owed today?
Just got the notice today from my online bank it is from unifundccr llc. It is only for me, not my husband. Including all the fees$8,614.85. They froze our balance of $1644. On another joint account they froze $45.00. On an account I was connected to for my son while in college they froze $266.00 + $100 attorney fee.
Today my husband opened his own account.
Thanks so much
Unifund CCR is not all that friendly to negotiate with. That is made more so when there is a judgment.
You may be able to settle this at 50%-ish, or lower due to the disability. But I would wait a few months before you approach negotiating with Unifund, or the attorney collecting. They just got paid some from the bank levy, and may not be all the eager to give a discount on the remainder. If you are in a hurry, you could probably settle for between 60 and 80 percent now (though not a gimme).
Thank you Very much.
I am scared because if I didnt have bad luck, I’d have none.
The order says to Glenn Mass, court officer is ORDERED to levy execution against goods and chattels, then it gives a list of all the things they can take like vehicles, bank accounts, jewelry, fur coats, instruments, electronics… Etc. to be sold. Local police are asked to assist in this writ, which expires 5/19/16. This does not authorize entry to the residence with force.
How likely is that to happen? And how soon could it happen?
Thank you
Eyelene
Eyelene – Would you mind taking this discussion over to this page: https://consumerrecoverynetwork.com/question/social-security-pension-state-exemption-debt-collector-garnishment/
I answered that reader question last week, and would like to see state collection exemptions be the focus. Your question,when posed in the comments over there, will help me address Massachusetts.
I recently borrowed from my 401k to pay back debt. I have not spent the money and have now been advised to file Chapter 7. Can I just pay back the 401k loan before filling?
Have you talked about this with your bankruptcy attorney? Do you have one yet?
You can also ask your 401k provider about what your next step should be.
Hi Michael,
I need your help, I went to the collection agency to pay off all but one account I have with them. I ask for paid in full letters for each account. I was then told I could not receive a paid in full letter until all of the accounts I have with them are paid. Is this legal for them to do that and not give me a letter for the ones I did pay in full?
What state do you live in? What is the name of the collection company?
I owe $650 on a GE Capital credit card. They closed the account last August and I recently got a call from a debt collector. My question is should I pay the amount in full or should I try to negotiate a lower settlement?
This far along the damage to your credit score and reports from not paying is done. You can pay in full or settle for less. Both will result in your account being updated to paid and zero owed, which is what you need to start to heal your credit. If it were me, I would look for the additional benefit of saving money by settling for as little a pay off as possible.
Hello Michael
I just last week received a summons from Suttell & Hammer a law firm in WA where I live, on behalf of Cavalry Portfolio Services for a Union 76 gas card debt I owe. I know I owe the debt and I do have the money to pay it but I would like to settle it for a lower amout. The total amount owed right now with interest is about $3,000.
My question is will they be willing to still settle? If so.. how low will they go? and also am I better off calling them myself or having my lawyer call them? Who will get the better deal?
Corey – You can still settle with Suttell and Hammer. Negotiating an agreement to pay 60 to 80 percent in a lump sum, if you can convey a financial hardship, is a realistic expectation with debts you have just been sued for. There are also instances where you will not be able to get even a 20% reduction, but I mostly associate that with someone whose credit report shows they are able to pay all other debts on time (and some outlier stuff that is rare).
If your attorney is familiar with how to defend against debt buyer lawsuits, or would like to get familiar, you could let him/her handle the negotiations for you. Putting on an initial defense to the lawsuit tends to soften settlement targets with debt buyers (not always with creditors). If your attorney does not do any debt defense, or consumer law, you may fare better negotiating the debt yourself compared to paying someone else.
Thanks Michael. My attorney is good with this stuff. I had him settle another card debt for me in the same instance last year for about 40% of the amount. I just wasn’t sure afterwards if I could have done the same thing myself and not had to pay him. He didn’t charge me much only $100. It might be better to have him do it anyway because I tend to get angry with the bill collectors even if I call them to try to settle, they are always very rude and try to make u feel like a dead beat. Even when you are calling to pay them. I have called to pay off a debt before and gotten so mad at the way they were acting that I hung up without paying. Are they paid to act that way?
I have also been throwing around the idea of filling for bankruptcy instead of trying to pay off my credit card collections debt. I currently have several things in collections. probably totaling about 30,000. I have means now to pay off all of them hopefully by end of this year. My question is how will it affect my credit? If I pay it all off with my credit to back to being good? or will it take just as long to build it back up as filing bankruptcy?
Corey – What credit/financing goals do you have in the next 24 or so months?
Well I own a auto repair shop and I would really like to purchase the building I am renting. Also I got married a few months ago and we would like to buy a house in the near future, but the business comes first. Also now that we are married I have inherited her debt as well which is prob 20-30k. We both own our own businesses and both are doing well right now. We have a plan of paying off all of our debt by the end of this year. I have been doing well now for a few years, but all my debt has taken a back seat to building our businesses. I do have the option also to do a owner contract on the property where my shop is which I do not needed credit for a few years, but will. My credit score before the economy took a hit was a high 700, I would like to get it back there as soon as I can.
If you can qualify for chapter 7 (both of you), I like that option far better. You save many thousands of dollars. The shop the owner is willing to carry is great. You can look to typical FHA styled underwriting for a home loan 2 years after the chapter 7 discharge.
If you do take the settlement path to debt relief, and given what you know about yourself, let the attorney handle the negotiations etc. He sounds affordable.
My last payments to these accounts was in 2009. I wish 5 years ago when all of this started I would have filed bankruptcy. I would have not had to pay a few of the debts i already have and my credit would already be good again. Is it still 10 years a bankruptcy stays on your credit? Is it true after seven years all of these accounts will be erased from my credit? With the letters my wife and I have received over the last year offering settlements of these accounts it looks like we can pay it all off for 15 to 20k. if after 7 years it would be wiped clean and its been 5 already. I’m going to sit down tonight and go over everything I know is in collections and the amounts and see truly how much it all is. How do you find out what all you debt is and who you owe it to? What is the best way? I get my Experian credit report monthly but it doesn’t seem like everything is on there. and i keep getting new things especially for my wife which we didn’t even know were in collections and don’t shop up on credit report. I need to know everything if we file for bankruptcy right?
No use focusing on the lost time, which I agree with your assessment. Focus on the goals you have and the time in front of you.
Read over this report that gets right to the point of comparing debt relief options and the impacts to your credit score and access to credit timelines: https://consumerrecoverynetwork.com/credit-report-score-rating-debt-relief-programs/ – the 10 year thing is true for chapter 7, but the wrong thing to focus on for many people.
What state are you in?
I live in WA.
I checked my credit report last night thru Equifax and my current credit score is 650. Which is higher than I thought it was right now. I checked my report and it only shows 2 accounts in collections, the cavalry account and also one with midland credit management. There are several others I know are in collections, is it normal for them to not show up? I receive letters from them almost monthly. I tried to sit down last night and figure out exactly how much I own and to who, but I’m not even sure who some of the accounts are with or how to find out. After 7 years what happens if they are unpaid? And is it 7 years since they were charged off?
Hi Michael,
Thank you for your site, very informative…I have fallen to Financial hardship, I owe to Discover $9,218.28 I stop making payments in Dec,2013. I received a letter from them stating in big bold letters
(Attorney Placement Pending). They said, they been authorized to forward my account to an Attorney to secure the current balance I owe on the above account… It also, states it can be resolve by me calling making payment arrangements.. If they do not here from me by May 30,2014 my account will be forward to an Attorney to obtain a Judgement against me. My Question is Michael is to late to settle with them???.. I live in California they are in OH.. Can I settle with them 3,000?? Is that too little to settle with them??
I forgot to ask you one more thing Michael, if they let me settle do most of the cc do it in 90 day term or 180 day term???
Discover would prefer the settlement to be in a lump sum, where other banks will settle with 90 day terms when you negotiate and make the first payment toward the settlement prior to charge off. 180 day, and even longer terms for settlement arrangements, are possible, but mostly after the accounts hit the outside collections agency pipelines (at least currently).
ivette – It is not too late to settle your Discover card directly with the them. What is your hardship? How long has your Discover card been open? How much of that 9k balance was due to charges in the 6 to 12 months prior to missing payments? The answers to those questions may change your approach to settling, or timing your negotiations.
Settling with Discover for 1/3-ish is a bit over optimistic. I would be looking at between 40 and 60 percent as a more realistic expectation. Discover settles lower, but not consistently.
Went thru cancer Insurance thru cobra ran out and new insurance was too much from July 20 until now I had no insurance bills are about 30 thousands and getting ready to go to collections I’ll have to sell my house to pay this but I’m willing to do that However want to settle for less Who would be the best to deal with the hospital or the collections people and what percentage should I shoot for?
Settlement amounts can be a moving target. What to aim for can vary from one account to the next. I tend to aim at 50% of medical debts as my negotiation target, but some accounts can be a bit under, while others much higher. When you are settling balances that total this much, I would encourage you to get coaching through the process. If you want to consult with a specialist about this, fill in the consultation form here.