I'm trying to figure out if trying to negotiate a partial payoff of my
credit card debt would be a reasonable avenue to pursue, rather than
going with bankruptcy. Bankruptcy doesn't look good to me at this
point because 1)not all of the value of my home is exempt under state
or federal house equity limits, and 2) hopefully I *should* be able to
pay off about 40-50% of the credit card debt within the next year,
from income I'm pretty sure will be coming.

I'm wondering if there is anyone who has had actual experience with
trying to negotiate with credit card companies, and if they could tell
me how low they were able to get the percentage down to (with what
company/companies). Or... if anyone knows of any good source of
information on this subject.

Thanks in advance for any help with this.

Bob

It is difficult to negotiate an average settlement on a number of cards less
than 50%. And if the debt is less than 6 months in arrears, you won't be
able to get that low.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@brettweiss.com *
* www.brettweiss.com *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only. It isn't
meant to be legal advice and you shouldn't treat it as such. If you want
legal advice, speak with a local lawyer familiar with your state's laws who
can review *all* of the facts and the law applicable to your situation.
************************************************** ***************

"Robert" <rluckey@tiac.net> wrote in message
news:bf61878f.0402181905.16435eaa@posting.google.c om... I'm trying to figure out if trying to negotiate a partial payoff of my credit card debt would be a reasonable avenue to pursue, rather than going with bankruptcy. Bankruptcy doesn't look good to me at this point because 1)not all of the value of my home is exempt under state or federal house equity limits, and 2) hopefully I *should* be able to pay off about 40-50% of the credit card debt within the next year, from income I'm pretty sure will be coming. I'm wondering if there is anyone who has had actual experience with trying to negotiate with credit card companies, and if they could tell me how low they were able to get the percentage down to (with what company/companies). Or... if anyone knows of any good source of information on this subject. Thanks in advance for any help with this. Bob

I think that 50% is a reasonable number. Generally you have to be pretty
far behind before they will talk to you. Make sure they fax you a letter
stating that your credit will show "paid as agreed"

Just what I have heard from others.


"Robert" <rluckey@tiac.net> wrote in message
news:bf61878f.0402181905.16435eaa@posting.google.c om... I'm trying to figure out if trying to negotiate a partial payoff of my credit card debt would be a reasonable avenue to pursue, rather than going with bankruptcy. Bankruptcy doesn't look good to me at this point because 1)not all of the value of my home is exempt under state or federal house equity limits, and 2) hopefully I *should* be able to pay off about 40-50% of the credit card debt within the next year, from income I'm pretty sure will be coming. I'm wondering if there is anyone who has had actual experience with trying to negotiate with credit card companies, and if they could tell me how low they were able to get the percentage down to (with what company/companies). Or... if anyone knows of any good source of information on this subject. Thanks in advance for any help with this. Bob

You have to default for many months (probably more than 6 months)
before your credit card companies even want to talk to you for
settlements. And during the months that you default, your interest
rates/late fees/over limit penalties will skyrocket and keep piling
up. So in the end, a 60% settment after 3 months default may be a
better deal than a 45% settlement after 9 months default. The %
settlement number can be very misleading and deceiving.

You can "try" to get the creditors to agree to have your account
reported as "Paid as Agreed" after the settlements. But in reality,
credit card companies rarely agree to report your settled account as
"Paid as Agree".







"Robert Cecil" <rlc1960@comcast.net> wrote in message news:<0EWYb.342383$I06.3597702@attbi_s01>... I think that 50% is a reasonable number. Generally you have to be pretty far behind before they will talk to you. Make sure they fax you a letter stating that your credit will show "paid as agreed" Just what I have heard from others. "Robert" <rluckey@tiac.net> wrote in message news:bf61878f.0402181905.16435eaa@posting.google.c om... I'm trying to figure out if trying to negotiate a partial payoff of my credit card debt would be a reasonable avenue to pursue, rather than going with bankruptcy. Bankruptcy doesn't look good to me at this point because 1)not all of the value of my home is exempt under state or federal house equity limits, and 2) hopefully I *should* be able to pay off about 40-50% of the credit card debt within the next year, from income I'm pretty sure will be coming. I'm wondering if there is anyone who has had actual experience with trying to negotiate with credit card companies, and if they could tell me how low they were able to get the percentage down to (with what company/companies). Or... if anyone knows of any good source of information on this subject. Thanks in advance for any help with this. Bob

Brett, Robert, K Kim:

Thanks for your input on this.

K Kim, I hadn't considered the fact that by the time they might be
willing to negotiate a settlement, the fees, penalties, etc would have
pushed the total balance substantially higher than where it is at this
point -- thanks for pointing that out.

I did snoop around on the net a bit and looked at various companies
offerring this service, and found some who posted (jpg.?) images of
various settlement letters they had received from creditors on behalf
of their clients, and there were many in the 45-60% discount range.
Of course, these companies would only present the "cream of the crop"
of their settlements, but it was interesting to see that the big boys
in the credit card industry *will* take substantial reductions in
payment if the circumstances are right.

I became aware of another factor to consider, which is that
apparently you have to report discharge of debt as *income* on your
tax return (unless you exempt some by offsetting it with corresponding
reductions in credit that might otherwise be due to you because of,
for instance, a net operating loss from your business, etc.). I
suppose that's fair in one way, but... yuck...

(This reporting as income apparently doesn't apply to bankruptcy, just
to "write-off" situations...)


Thanks again,

Bob

rluckey@tiac.net (Robert) wrote in message I became aware of another factor to consider, which is that apparently you have to report discharge of debt as *income* on your tax return

Very true.

Other fun surprises to be aware of...in my state,for example, where
IRA's are currently fair game under state filing guidelines, they can
seize (some) IRAs to pay your dischargeable debts, potentially causing
you considerable taxes AND early withdrawal penalties that are
non-dischargeable! Cute, huh?