GoCardinals Posted September 6, 2019 Share Posted September 6, 2019 Back from the dead here. They say with great power, comes great responsibility. Several years back I built great power with my available credit, but failed on the responsibility part. Fast forward to now, and I have $160k in delinquent cc debt all aged over a year since payment(I think). I need to review exact dates. Rainbow of creditors. Basically everyone you can think of except amex and capital one. I have a lump sum to settle with, but it is limited. Anyhow, I've compiled a spreadsheet of all settlement the offers I've received by mail, and am close to 35% on average for about $120k of the debt(offers range from 15% to 80%). I want to get this down near 20-25% if possible, because it is still unknown how much the last $40k would cost me since I have no offers. Some are owned by JDB some are still oc, and two I had to hire a lawyer to settle in court because I let them go too long and was sued. I'll be looking for advice as I go along. I don't mind sharing more detailed info but don't want to give away my identity in case there are lurkers from these businesses in the forum. Quote Link to comment Share on other sites More sharing options...
hegemony Posted September 6, 2019 Share Posted September 6, 2019 from what you post, it sounds like BK is in order and will protect you in ways settling will not Quote Link to comment Share on other sites More sharing options...
GoCardinals Posted September 6, 2019 Author Share Posted September 6, 2019 (edited) BK will put me at paying ~90% over 5 years. And leave me with the discharge and credit ding 10 years after. Edited September 6, 2019 by GoCardinals Quote Link to comment Share on other sites More sharing options...
GoCardinals Posted September 6, 2019 Author Share Posted September 6, 2019 It's also much more complicated, because of my large student loan debt I'm over the chapter 13 debt limit. The IDR provides a reasonable payment for that though which I can manage. Quote Link to comment Share on other sites More sharing options...
hegemony Posted September 6, 2019 Share Posted September 6, 2019 when you settle, what becomes of the remainder? and will you get a 1099 for it? depending on what you owe any individual issuer, getting a settlement for 25% on a within SOL debt may be difficult. Quote Link to comment Share on other sites More sharing options...
GoCardinals Posted September 6, 2019 Author Share Posted September 6, 2019 (edited) 23 minutes ago, hegemony said: when you settle, what becomes of the remainder? and will you get a 1099 for it? depending on what you owe any individual issuer, getting a settlement for 25% on a within SOL debt may be difficult. I am insolvent for the debt according to the IRS worksheet in Publication 4681, it will be excepted from income. Based on the existing offers in hand, it is definitely possible. NFCU and Chase specifically are both below 25% and I haven't communicated at all with them. Most others are already at 35 or so without any communication. There are really only a few that are sitting between 50-80%. I'd be willing to share the summary sheet privately if you are interested. Edited September 6, 2019 by GoCardinals Quote Link to comment Share on other sites More sharing options...
centex Posted September 6, 2019 Share Posted September 6, 2019 Nothing precludes the debtor who defaults from contacting the current holder of the walked debt and making an offer to resolve the matter. Being proactive is actually an adult thing to do... Kat58 1 Quote Link to comment Share on other sites More sharing options...
IndyPoolPlayer Posted September 6, 2019 Share Posted September 6, 2019 Just remember, with some lenders - Chase included - settling is viewed as badly as IIB and leave you blacklisted. If you're willing to accept the consequences of settling, then by all means do so. hegemony 1 Quote Link to comment Share on other sites More sharing options...
GoCardinals Posted September 6, 2019 Author Share Posted September 6, 2019 1 hour ago, IndyPoolPlayer said: Just remember, with some lenders - Chase included - settling is viewed as badly as IIB and leave you blacklisted. If you're willing to accept the consequences of settling, then by all means do so. Hey thanks for the advice! Definitely aware of that. But after living under this dark cloud for a couple years, absolutely can live the rest of my life without the lenders I'm settling with. I'm maintaining my amex cards without any AA so far surprisingly, and one credit union card. Quote Link to comment Share on other sites More sharing options...
IndyPoolPlayer Posted September 7, 2019 Share Posted September 7, 2019 20 hours ago, GoCardinals said: Hey thanks for the advice! Definitely aware of that. But after living under this dark cloud for a couple years, absolutely can live the rest of my life without the lenders I'm settling with. I'm maintaining my amex cards without any AA so far surprisingly, and one credit union card. I wouldn't count on Amex being there once these settlements hit your CRA reports. hegemony 1 Quote Link to comment Share on other sites More sharing options...
maudie Posted January 9, 2020 Share Posted January 9, 2020 On 9/7/2019 at 11:49 AM, IndyPoolPlayer said: I wouldn't count on Amex being there once these settlements hit your CRA reports. Hi IndyPoolPlayer! What do do you mean by this? Does AmEx have a history of dropping folks for settling with other cardholders, even if the AmEx accounts are unblemished? Thanks! m Quote Link to comment Share on other sites More sharing options...
centex Posted January 9, 2020 Share Posted January 9, 2020 6 hours ago, maudie said: Hi IndyPoolPlayer! What do do you mean by this? Does AmEx have a history of dropping folks for settling with other cardholders, even if the AmEx accounts are unblemished? A number of lenders get skittish when a cardholder is walking debts with other entities. And, at times, AXP is one of them. That being said, if you have survived this long without them taking adverse action, then you may have lived a charmed life. Or, alternately, you may find they simply don't renew the card when it comes time for the new one to ordinarily be sent... Wit6hout a doubt, they are looking at your report at least once a month and likely two or three times per month. Given that you have referenced charge-off events and even junk purchasers in your life, then those are presumably staining your reports worse than a rat turd in the potato salad during a Sunday picnic... Quote Link to comment Share on other sites More sharing options...
IndyPoolPlayer Posted January 9, 2020 Share Posted January 9, 2020 6 hours ago, maudie said: Hi IndyPoolPlayer! What do do you mean by this? Does AmEx have a history of dropping folks for settling with other cardholders, even if the AmEx accounts are unblemished? Thanks! m Not just AmEx but yes. Quote Link to comment Share on other sites More sharing options...
maudie Posted January 10, 2020 Share Posted January 10, 2020 Interesting. Okay, thanks to both centex and IndyPoolPlayer. AmEx did recently lower the limit a little on the Blue, referencing my less than stellar credit as the reason, and my Gold charge is up for renewal next month. We shall see, eh? Which is the death blow: the original default or is it the settling for less than owed? Quote Link to comment Share on other sites More sharing options...
IndyPoolPlayer Posted January 10, 2020 Share Posted January 10, 2020 1 hour ago, maudie said: Which is the death blow: the original default or is it the settling for less than owed? If you default but eventually pay it back that's not so bad. If you settle for less that's almost as bad as a BK with some lenders. Chase and Barclays being two examples. Quote Link to comment Share on other sites More sharing options...
TheDeansClub Posted February 20, 2021 Share Posted February 20, 2021 On 9/6/2019 at 10:29 PM, GoCardinals said: Hey thanks for the advice! Definitely aware of that. But after living under this dark cloud for a couple years, absolutely can live the rest of my life without the lenders I'm settling with. I'm maintaining my amex cards without any AA so far surprisingly, and one credit union card. GoCards: Care to give an update on how things went? How has the dust settled for you and do you have any regrets? Quote Link to comment Share on other sites More sharing options...
GordonnotRamsay Posted February 26, 2021 Share Posted February 26, 2021 I am also curious about what happened. I hope all has been settled and that this never happens to you again. Once you settle this, I just hope that you will start to learn how to invest your money more properly. Try to learn about cryptocurrencies, make a small invesment perhaps? maybe It'll grow in time. I think Learncrypto provides the basic knowledge base and keeps track of the current market and what you'll be expecting. Source : https://learncrypto.com/ Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.