What TL do you ask for?

[Close2zero]

Hello!

 

When negotiating with a JDB or OC, what do you ask for the tradeline to be when you are trying to settle? We don't have the money to pay the full amount owed but are trying to settle for 20%-30% on the dollar. I read something about getting them to agree to not answer any CR challenges. Is that an added request in the negotiation?

 

Thanks!

[funkiehouse]

If you settle for less they will almost never completely delete the TL unless maybe you're past SOL. The TL should read something like "Settled for less than full amount" or "Settled. Paid in full" or something like that. You should also request they put in writing that they will not sell the remaining debt and that that the account is considered closed. They may issue a 1099 for the remaining debt forgiven. OC are hard to get to delete. If the OC no longer owns it then you'll need a technicality in the reporting to have a chance to get it removed.

You need to verify the SOL on these debts, who actually owns them and do everything in writing.

[funkiehouse]

I saw your other post as well. If you have several of these I would suggest that you start with just one of the and let us help you step by step with the first one. Paying a debt without doing a PFD correctly can hurt your score by making the activity more recent.

[Close2zero]

funkiehouse,

You are a GEM! Thank you, thank you!

The lawyer is meeting with Discover Attys today (they filed suit) and I need to instruct him what we can offer right now and what I want in return. As of today, I can only offer $2K on ~$10900 balance (which I don't think they'll take.) We went to the atty b/c we thought we were going to file CH7 but we have too much equity in our house (about $80-$100K with a state limit of $15/$30K) to do it and keep the house.

http://creditboards.com/forums/index.php?showtopic=525244

If I tell our atty that we can offer $2K, what do I ask for them to agree to do for the CR- not respond to any challenges? I want to be realistic but do this right.

I also was served by Portfolio Recovery and told our atty to send a DV letter to them for starters. I am doing the rest myself. Do I start by sending DV's to everyone (including medical bills), CMRRR as a blanket starting place?

[funkiehouse]

 

funkiehouse,

You are a GEM! Thank you, thank you!

The lawyer is meeting with Discover Attys today (they filed suit) and I need to instruct him what we can offer right now and what I want in return. As of today, I can only offer $2K on ~$10900 balance (which I don't think they'll take.) We went to the atty b/c we thought we were going to file CH7 but we have too much equity in our house (about $80-$100K with a state limit of $15/$30K) to do it and keep the house.

http://creditboards.com/forums/index.php?showtopic=525244

If I tell our atty that we can offer $2K, what do I ask for them to agree to do for the CR- not respond to any challenges? I want to be realistic but do this right.

I also was served by Portfolio Recovery and told our atty to send a DV letter to them for starters. I am doing the rest myself. Do I start by sending DV's to everyone (including medical bills), CMRRR as a blanket starting place?

 

 

I'm willing to bet that the Discover attys have done their homework and probably know about all of your assets, which is probably why they got involved anyway. I would hold off on doing anything else until this gets settled. I think the DV to Portfolio from your atty is okay to do but at this point I would consider and take the advice of the atty your working with because they have a better picture of your overall situation. I would make sure that you ask your atty to try to get as much removed as possible from your CR and see if you can keep a judgement off of your reports.

 

It's hard to say what they will accept. I don't know if this is best or wise but if they won't settle for 2k but will for half the amount, then maybe consider a line of credit from your home's equity to settle if that's what it takes to keep you from going to court for the whole amount. Again, I don't know if this is a good idea or wise to do for you but just start thinking about situations like this, if it will help your case. I'm not an atty or financial pro so I would get pro advice before doing something like this. Also, remember settling will/may have tax implications for you next year and raise your collection score.

[Close2zero]

Thanks. I don't think we could get a loan from equity right now b/c my husband is looking for a job. He will be doing substitute teaching while he looks but I am not sure a bank will give us a loan because our income is too low right now. Our income/debt is also too high given that we refinanced our mortgage to a 15 year loan before my husband lost his job the first time (out of work almost 2 years.) Then again, if we get a 'high risk' home equity, with a steep interest rate, it may be better than or equal to taking a huge hit on the withdrawal of 401K funds. I'll start looking into it.

 

It may also have the benefit of paying debt (clearing that up) and getting our scores going the right direction.