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nkotb

Windfall, How to Proceed with Payoff?

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Hello Everyone,

 

Not to open the ball of wax, previous posts talk about situation.

 

I am looking for advice on how to proceed with a payoff plan. I am getting enough money to pay nearly everything off, but not everything. Most things at this point are closed so no use is permitted because I went into hardship plans. Most of my creditors are 30-60 days past due, but I want to pay EVERYTHING if I can.

 

Can I negotiate with any of them at all to get things reduced to fit everything into the amount I receive?

 

Thank you in advance.

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I'll assume the gifter is conforming to IRS rules on such matters.

 

Are any of these accounts charged-off?

 

Are the closed account still incurring interest?

 

In general I'd suggest paying the highest APY OPEN accounts first and then as many of the closed accounts as possible assuming you are paying the original creditor not a collection agency.

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7 hours ago, hegemony said:

I'll assume the gifter is conforming to IRS rules on such matters.

 

Are any of these accounts charged-off?

 

Are the closed account still incurring interest?

 

In general I'd suggest paying the highest APY OPEN accounts first and then as many of the closed accounts as possible assuming you are paying the original creditor not a collection agency.

All of the accounts are still with the original creditors, so I guess that answers my question as far as negotiation. I guess no wiggle room when they are with them.

 

 

 

 

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Be prepared to use the phone with original creditors and don't wait on them to provide anything in writing.  If they give a lump-sum pay-off number, then be prepared to do a payment there on the spot. 

 

Preference should be given to the accounts with the highest APR%.  You ALWAYS want to pay off the accounts first that are costing you the most money.

 

Where an account might be able to be salvaged, inquire about a Rule 5000 adjustment.  This is a legal re-aging of the account that would see derogatory information removed.  The FDIC rule allows this to be a win-win for all involved...bank gets paid and shows the consumer some quid for the pro quo through the demonstration of the consumer to make things right.  Account remains open and the bank gets paid.  These Agreements require payment in no more than three payments, but banks will accept it as a single payment.  CrapOne is one of the most notable at entertaining these Agreements right now. 

 

Where an account is closed and won't be re-opened, then many things MAY be negotiated that lower the amount you will pay, to include the removal of late fees.  Again, it is quid for the pro quo precisely because you are offering lump sum.  Be prepared for any settlement for less than the full amount of the underlying balance to generate a 1099-C since you have created a taxable event. 

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6 hours ago, centex said:

Be prepared to use the phone with original creditors and don't wait on them to provide anything in writing.  If they give a lump-sum pay-off number, then be prepared to do a payment there on the spot. 

 

Preference should be given to the accounts with the highest APR%.  You ALWAYS want to pay off the accounts first that are costing you the most money.

 

Where an account might be able to be salvaged, inquire about a Rule 5000 adjustment.  This is a legal re-aging of the account that would see derogatory information removed.  The FDIC rule allows this to be a win-win for all involved...bank gets paid and shows the consumer some quid for the pro quo through the demonstration of the consumer to make things right.  Account remains open and the bank gets paid.  These Agreements require payment in no more than three payments, but banks will accept it as a single payment.  CrapOne is one of the most notable at entertaining these Agreements right now. 

 

Where an account is closed and won't be re-opened, then many things MAY be negotiated that lower the amount you will pay, to include the removal of late fees.  Again, it is quid for the pro quo precisely because you are offering lump sum.  Be prepared for any settlement for less than the full amount of the underlying balance to generate a 1099-C since you have created a taxable event. 

So asking for them to re-age the account in agreement to pay in full? I would assume I would be asking if they can do this before I pay it. 

 

I can see the amount of shuffling around on the phone that's gonna happen asking for a re-age on my account. Lol

 

Some of these call centers are absurd. Most can't even handle the basic of tasks.

Edited by nkotb

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1) if the front-line cannot do it or has no clue, then you ask for a transfer. 

2) if an off-shorian answers, then you immediately ask to be transferred Stateside

3) when all else fails, hang up and call again.

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