One Final try before BK. Need wise advice on my settlement letter plz.

[crzywizdom]

One Final try before BK. Need wise advice on my settlement letter plz.

 

Have an offer of 30% from this bank 1 (30K T) and 40% from the other. bank 2 (16K T)

Both OC

They are both about to be charged off. And say this is my last chance.

 

My intended result is to make one last offer before i may have to BK7.

 

This is my counter offer of $2000 to bank 1

I have researched and done my best. But I am scared I have left something crucial out.

and I dont know what happens next.

 

all constructive comments, tips, suggestions, welcome. Crzy : )

 

-------------------------------------------------------------------------------------

 

Attn: XXX BANK Customer Service Name(s) on account: Account number:

 

To Whom It May Concern:

 

I am undergoing unbearable medical and financial hardship.

 

For over a year I have been caring for a loved one on feeding tubes, and another in excrusiating chronic pain.

 

I have no assets

 

· I am self-employed

 

· I am out of work and business is terrible

 

· I don’t have anything left to sell or anyone to borrow from

 

· I am undergoing multiple serious medical and financial traumas.

 

· I am broke - and trying my best to stay out of bankruptcy.

 

 

 

You will note from my credit history I had perfect credit for 17 years. Never missed a payment. I worked so hard for that. Now that is all gone.

 

You may think it can't happen to you, that's what I thought too.

 

If you have ever experienced series of unexpected events that takes away everything you worked for,

 

or a season of multiple, serious loss, almost beyond words - I am sure you know what I mean. I am doing my best to take care of my family as you would too.

 

As you informed me, If we settle, I understand you may have to send me an IRS 1099C for forgiven debt and I may have to pay taxes on the amount forgiven as income.

 

that of course makes this even tougher.

 

I appreciate your offer to settle of 30%. = ($9,000) However, If I could pay anything close to that much, I would not be in this position.

 

 

 

Here is my reasonable, realistic, respectful, settlement offer:

 

1.1 I agree to pay XXX Bank $2000.00 dollars in total. XXX Bank agrees to accept that payment as settlement in full for all claims and demands associated with these chase accounts, known or unknown. The balance of the Total is forever discharged and CRZYWIZDOM is no longer liable for this balance or any charges, penalties, interest or fees associated with these accounts.

 

 

 

2.1 Any remaining balance will not be sold or transferred to another party and $2000.00 is settlement in full for all claims and demands XXX Bank has against CRZYWIZDOM arising out of XXX bank Accounts #1,#2, 3. XXX agrees to forever waive all claims, will not sell the balance off, and agrees that CRZYWIZDOM is not liable to them for this debt, and the $2000.00 is full and final payment.

 

 

 

3.1 The amounts will be marked in one of the following ways in order of prefference:

 

A) " Paid as agreed"

 

OR

 

All negatives will be removed from the trade line.

 

OR

 

C) Trade line will be deleted entirely. You will submit a Universal Data Form or similar document to Experian, Equifax, Transunion, and any other credit-reporting agency to which you reported this account, deleting the entire account/trade line.

 

4.1 If I am sent a 1099-C. The forgiven debt IRS 1099-C will be mailed after Jan 1st 2013 so that all 1099-C’s are in the same calendar year.

 

5.1. CRAZYWIZDOM agrees to pay the $2000 in payments as stated. They will be paid over 90 days as follows.

 

 

 

1/1/13: 33% of payment of $667.00 Made out to XXX Bank.

 

2/1/13 33% of payment of $667.00 Made out to XXX Bank.

 

3/1/13 33% of payment of $667.00 Made out to XXX Bank. ( FINAL PAYMENT IN FULL.)

 

 

If my offer is acceptable to you, please initial the accepted proposal, sign the acceptance below, and return this letter to me in the enclosed envelope.

 


Agreed to and accepted on this 25th day of Oct 2012

 

Sincerely,

 

Signature: ________________________

 


Name: CRZYWIZDOM

 

Address: FREEDOM TOWN USA

 

Phone: I -800- OFF THE GRID

 

Date: October 25, 2012

 

_______________________________________________________________

 

AGREED TO AND ACCEPTED ON THS -___ DAY OF _________, 2012

 

 

 

BY: _________________________________________________________

 

 

 

NAME: (PRINT) ______________________________________________

 

 

 

TITLE: ______________________________________________

[crzywizdom]

IS this the correct post to post this in please?

 

 

 

One Final try before BK. Need wise advice on my settlement letter plz.

 

Have an offer of 30% from this bank 1 (30K T) and 40% from the other. bank 2 (16K T)

Both OC

They are both about to be charged off. And say this is my last chance.

 

My intended result is to make one last offer before i may have to BK7.

 

This is my counter offer of $2000 to bank 1

I have researched and done my best. But I am scared I have left something crucial out.

and I dont know what happens next.

 

all constructive comments, tips, suggestions, welcome. Crzy : )

 

-------------------------------------------------------------------------------------

 

Attn: XXX BANK Customer Service Name(s) on account: Account number:

 

To Whom It May Concern:

 

I am undergoing unbearable medical and financial hardship.

 

For over a year I have been caring for a loved one on feeding tubes, and another in excrusiating chronic pain.

 

I have no assets

 

· I am self-employed

 

· I am out of work and business is terrible

 

· I don’t have anything left to sell or anyone to borrow from

 

· I am undergoing multiple serious medical and financial traumas.

 

· I am broke - and trying my best to stay out of bankruptcy.

 

 

 

You will note from my credit history I had perfect credit for 17 years. Never missed a payment. I worked so hard for that. Now that is all gone.

 

You may think it can't happen to you, that's what I thought too.

 

If you have ever experienced series of unexpected events that takes away everything you worked for,

 

or a season of multiple, serious loss, almost beyond words - I am sure you know what I mean. I am doing my best to take care of my family as you would too.

 

As you informed me, If we settle, I understand you may have to send me an IRS 1099C for forgiven debt and I may have to pay taxes on the amount forgiven as income.

 

that of course makes this even tougher.

 

I appreciate your offer to settle of 30%. = ($9,000) However, If I could pay anything close to that much, I would not be in this position.

 

 

 

Here is my reasonable, realistic, respectful, settlement offer:

 

1.1 I agree to pay XXX Bank $2000.00 dollars in total. XXX Bank agrees to accept that payment as settlement in full for all claims and demands associated with these chase accounts, known or unknown. The balance of the Total is forever discharged and CRZYWIZDOM is no longer liable for this balance or any charges, penalties, interest or fees associated with these accounts.

 

 

 

2.1 Any remaining balance will not be sold or transferred to another party and $2000.00 is settlement in full for all claims and demands XXX Bank has against CRZYWIZDOM arising out of XXX bank Accounts #1,#2, 3. XXX agrees to forever waive all claims, will not sell the balance off, and agrees that CRZYWIZDOM is not liable to them for this debt, and the $2000.00 is full and final payment.

 

 

 

3.1 The amounts will be marked in one of the following ways in order of prefference:

 

A) " Paid as agreed"

 

OR

 

All negatives will be removed from the trade line.

 

OR

 

C) Trade line will be deleted entirely. You will submit a Universal Data Form or similar document to Experian, Equifax, Transunion, and any other credit-reporting agency to which you reported this account, deleting the entire account/trade line.

 

4.1 If I am sent a 1099-C. The forgiven debt IRS 1099-C will be mailed after Jan 1st 2013 so that all 1099-C’s are in the same calendar year.

 

5.1. CRAZYWIZDOM agrees to pay the $2000 in payments as stated. They will be paid over 90 days as follows.

 

 

 

1/1/13: 33% of payment of $667.00 Made out to XXX Bank.

 

2/1/13 33% of payment of $667.00 Made out to XXX Bank.

 

3/1/13 33% of payment of $667.00 Made out to XXX Bank. ( FINAL PAYMENT IN FULL.)

 

 

If my offer is acceptable to you, please initial the accepted proposal, sign the acceptance below, and return this letter to me in the enclosed envelope.

 


Agreed to and accepted on this 25th day of Oct 2012

 

Sincerely,

 

Signature: ________________________

 


Name: CRZYWIZDOM

 

Address: FREEDOM TOWN USA

 

Phone: I -800- OFF THE GRID

 

Date: October 25, 2012

 

_______________________________________________________________

 

AGREED TO AND ACCEPTED ON THS -___ DAY OF _________, 2012

 

 

 

BY: _________________________________________________________

 

 

 

NAME: (PRINT) ______________________________________________

 

 

 

TITLE: ______________________________________________

[crzywizdom]

I have not gotten any replays should i repost it in another forum? what can i do better please?

 

 

 

 

 

 

IS this the correct post to post this in please?

 

 

 

One Final try before BK. Need wise advice on my settlement letter plz.

 

Have an offer of 30% from this bank 1 (30K T) and 40% from the other. bank 2 (16K T)

Both OC

They are both about to be charged off. And say this is my last chance.

 

My intended result is to make one last offer before i may have to BK7.

 

This is my counter offer of $2000 to bank 1

I have researched and done my best. But I am scared I have left something crucial out.

and I dont know what happens next.

 

all constructive comments, tips, suggestions, welcome. Crzy : )

 

-------------------------------------------------------------------------------------

 

Attn: XXX BANK Customer Service Name(s) on account: Account number:

 

To Whom It May Concern:

 

I am undergoing unbearable medical and financial hardship.

 

For over a year I have been caring for a loved one on feeding tubes, and another in excrusiating chronic pain.

 

I have no assets

 

· I am self-employed

 

· I am out of work and business is terrible

 

· I don’t have anything left to sell or anyone to borrow from

 

· I am undergoing multiple serious medical and financial traumas.

 

· I am broke - and trying my best to stay out of bankruptcy.

 

 

 

You will note from my credit history I had perfect credit for 17 years. Never missed a payment. I worked so hard for that. Now that is all gone.

 

You may think it can't happen to you, that's what I thought too.

 

If you have ever experienced series of unexpected events that takes away everything you worked for,

 

or a season of multiple, serious loss, almost beyond words - I am sure you know what I mean. I am doing my best to take care of my family as you would too.

 

As you informed me, If we settle, I understand you may have to send me an IRS 1099C for forgiven debt and I may have to pay taxes on the amount forgiven as income.

 

that of course makes this even tougher.

 

I appreciate your offer to settle of 30%. = ($9,000) However, If I could pay anything close to that much, I would not be in this position.

 

 

 

Here is my reasonable, realistic, respectful, settlement offer:

 

1.1 I agree to pay XXX Bank $2000.00 dollars in total. XXX Bank agrees to accept that payment as settlement in full for all claims and demands associated with these chase accounts, known or unknown. The balance of the Total is forever discharged and CRZYWIZDOM is no longer liable for this balance or any charges, penalties, interest or fees associated with these accounts.

 

 

 

2.1 Any remaining balance will not be sold or transferred to another party and $2000.00 is settlement in full for all claims and demands XXX Bank has against CRZYWIZDOM arising out of XXX bank Accounts #1,#2, 3. XXX agrees to forever waive all claims, will not sell the balance off, and agrees that CRZYWIZDOM is not liable to them for this debt, and the $2000.00 is full and final payment.

 

 

 

3.1 The amounts will be marked in one of the following ways in order of prefference:

 

A) " Paid as agreed"

 

OR

 

All negatives will be removed from the trade line.

 

OR

 

C) Trade line will be deleted entirely. You will submit a Universal Data Form or similar document to Experian, Equifax, Transunion, and any other credit-reporting agency to which you reported this account, deleting the entire account/trade line.

 

4.1 If I am sent a 1099-C. The forgiven debt IRS 1099-C will be mailed after Jan 1st 2013 so that all 1099-C’s are in the same calendar year.

 

5.1. CRAZYWIZDOM agrees to pay the $2000 in payments as stated. They will be paid over 90 days as follows.

 

 

 

1/1/13: 33% of payment of $667.00 Made out to XXX Bank.

 

2/1/13 33% of payment of $667.00 Made out to XXX Bank.

 

3/1/13 33% of payment of $667.00 Made out to XXX Bank. ( FINAL PAYMENT IN FULL.)

 

 

If my offer is acceptable to you, please initial the accepted proposal, sign the acceptance below, and return this letter to me in the enclosed envelope.

 


Agreed to and accepted on this 25th day of Oct 2012

 

Sincerely,

 

Signature: ________________________

 


Name: CRZYWIZDOM

 

Address: FREEDOM TOWN USA

 

Phone: I -800- OFF THE GRID

 

Date: October 25, 2012

 

_______________________________________________________________

 

AGREED TO AND ACCEPTED ON THS -___ DAY OF _________, 2012

 

 

 

BY: _________________________________________________________

 

 

 

NAME: (PRINT) ______________________________________________

 

 

 

TITLE: ______________________________________________

[bostonte]

So you want them to accept about 6%, in payments (not at once), plus clean the reporting to all positive, and structure the 1099-C to your preference?

 

Sure, I guess you can try -- but I don't think that's realistic. Hopefully I'm wrong, I'm sure that would help your situation a lot.

 

If you're not a lawyer, strip out the attempt at legalese. Use plain language. Many of the terms you used have very specific legal meanings, using them without fulling understanding them can backfire. If something were to happen where your agreement were to come in front of a judge (I.e, they didn't honor it) you will likely find the judge interprets plain language in your favor and gives you the benefit of the doubt about what the agreement was meant to say, playing lawyer tends to upset them and they decide to stay very strict to the specific words you chose.

 

Pushing that you're teetering on the edge of bankruptcy may not have the effect you want, it could turn them away from accepting a settlement. They may legitimately fear you will begin paying them and end up filing bankruptcy anyways. If your payments to them are within the right time frame, the trustee can sue to recover them to distribute to all creditors. The risk of having this happen (and the expense to process and handle it) might be too high for the upside of a 6% settlement offer. Mention it, but don't press it too hard.

 

Shorten the letter. Whomever is reading the mail will get bored after the first few lines and stop paying attention. Unfortunately they don't really care about your story. They're just looking for the buzzwords their masters have told them need to be present to move your request on to the next level of review. Bury the important words, and they will be missed.

 

Quick short bullet points. Something like I have a documented medical hardship. My business has failed. I have no assets or savings remaining. This offer is the highest I can offer. If you do not accept this offer, I am prepared to explore alternatives including a bankruptcy filing.

 

Good luck! I hope your circumstances can begin to improve.

[EarnIt]

I wish I had been able to get the generous terms you are requesting. If you can, well done indeed. IMO, realistically the OC will only annotate your CR as settled for less than the full amount and charged off. That is damaging to your credit but not as bad as an unpaid CO.

 

What's your primary goal, to remove the liability? If so, worry about the credit report after the debt is cleaned up.

 

Post Charge Off, a 20% settlement (sometimes less but not often) is possible. Pre CO, the settlement offers will be higher. Additionally, I agree with the above poster, keep the letter simple. Simple geneterally plays to your advanatage.

 

Good Luck,

EarnIt

[crzywizdom]

Thank you so much for all the replys. I really appreciate all your help. I will shorten the letter.

 

I have one other question, I have heard it you get a 1009c for the forgiven debt and then declare legal insolvency, (that dismisses the taxes on forgiven debt). you are very likely to be audited expecially if self employed. any one know if that is true?

 

 

 

 

 

 

I wish I had been able to get the generous terms you are requesting. If you can, well done indeed. IMO, realistically the OC will only annotate your CR as settled for less than the full amount and charged off. That is damaging to your credit but not as bad as an unpaid CO.

 

What's your primary goal, to remove the liability? If so, worry about the credit report after the debt is cleaned up.

 

Post Charge Off, a 20% settlement (sometimes less but not often) is possible. Pre CO, the settlement offers will be higher. Additionally, I agree with the above poster, keep the letter simple. Simple geneterally plays to your advanatage.

 

Good Luck,

EarnIt

[EarnIt]

Can't speak to the likelihood of being audited. I did get a 1099c for each and every settlement. I did have to submit forms declaring insolvency. It was a pain in the flowers as Trubotax does not handle it cleanly and you have to manually turn on the documents that need completing. The first time through took a bit of reading and asking, but it was manageable.

 

Good Luck,

EarnIt

[crzywizdom]

Can't speak to the likelihood of being audited. I did get a 1099c for each and every settlement. I did have to submit forms declaring insolvency. It was a pain in the flowers as Trubotax does not handle it cleanly and you have to manually turn on the documents that need completing. The first time through took a bit of reading and asking, but it was manageable.

 

Good Luck,

EarnIt

 

 

Thanks I wasnt afraid of an audit but my accountant of 20 years just died with no relatives and they shredded all his old papers including my tax forms.