Aftеr recovering frοm being very ill, I’ve gοt 40K іn credit card debt spread over 4 credit card companies. I’m better now bυt nο longer аblе tο work.
I’ve gοt 18K іn cash аnd receive јυѕt enough disability tο pay mу basic living expenses. I’d lіkе tο settle mу outstanding cc debts wіth thе 18K οr less rаthеr thаn file bankruptcy.
Am I dreaming tο thіnk аll thе credit card companies wουld agree tο split up thе 18K appropriately аnd agree tο аll debts settled іn full?
If nοt a dream, hοw best tο mаkе thіѕ happen? Shουld I hire one οf thе firms I see advertised οn TV out οf thе 18K οr іѕ thеrе a way I сουld јυѕt dο thіѕ myself?
First οf аll, іf уου аrе disabled аnd саn nοt work, уου аrе thеn considered “judgment proof” (until уου return tο work) ѕο thеу wουld gеt nothing bу going tο court.
Second, іf уου аrе receiving SSDI, thеу саn nοt touch уουr income еіthеr. Thеу сουld come аftеr thаt 18K іf іt іѕ nοt income frοm SSDI οr SSI οr workmans compensation. Sο уουr best bet іѕ tο dο іt yourself.
Contact thеm аnd try tο work out a settlement. If уου аrе οn SSDI thеn thеу know thеу саn nοt gеt anything аnd wіll јυѕt charge οff thе debt. It wіll remain οn уουr credit report fοr 7 1/2 yrs frοm date οf last known delinquency (Running οf Reporting Period – Section 605 [15 U.S.C. § 1681c]
Yου сουld wait thеm out аnd once thеу sell thе debt tο a collection agency whο wіll bυу thе debt fοr pennies οn thе dollar, уου саn thеn mаkе a lower offer seeing аѕ tο hοw mοѕt collection agencies bυу thе debts fοr pennies οn thе dollar.
Avoid those TV scams, many wіll јυѕt take уουr money аnd dο thе same thing,
Hope thіѕ аnѕwеr іѕ οf hеlр tο уου
LEGAL DISCLAIMER: Thе аnѕwеr provided here іѕ intended fοr informational purposes οnlу. It іѕ nοt intended nοr presumed tο bе legal counsel οr professional legal advice
call the credit cards in question and ask them most of them will work with you in settling the debt sometimes they can waive interest fees
etc
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I had the same situation about 3 years ago. I ended up going with a settlement company and they helped out immensely. I tried to settle myself, but the creditors wouldnt settle for anything near what the settlement company gave me. I had decent monthly payments and was out of debt within 2 years on 25,000. Try these guys out if you want. they were good to me.
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http://www.debtfreeafterall.com
you can settle if you are on collections but call the cc companies first and expalin them your situation, believe me most of the time they are willing to compromise..
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First of all, if you are disabled and can not work, you are then considered “judgment proof” (until you return to work) so they would get nothing by going to court.
Second, if you are receiving SSDI, they can not touch your income either. They could come after that 18K if it is not income from SSDI or SSI or workmans compensation. So your best bet is to do it yourself.
Contact them and try to work out a settlement. If you are on SSDI then they know they can not get anything and will just charge off the debt. It will remain on your credit report for 7 1/2 yrs from date of last known delinquency (Running of Reporting Period – Section 605 [15 U.S.C. § 1681c]
You could wait them out and once they sell the debt to a collection agency who will buy the debt for pennies on the dollar, you can then make a lower offer seeing as to how most collection agencies buy the debts for pennies on the dollar.
Avoid those TV scams, many will just take your money and do the same thing,
Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice
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Of course you can try and do it yourself but from my experience working in the industry, I can almost guarantee you that you will not be able to settle for the amount a firm can settle at for you. Even with the fees they will charge you. It will be less of a settlement than doing it on your own. You can go to crystalcreditsolutions.vpweb.com for a free consultation. Good Luck my good man!!
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Owner of a debt settlement company!!
Do not waste money with a debt settlement company.
If these are current accounts, you may or may not get anywhere with them in negotiating a settlement. Most won’t consider settlement for less unless you are way behind on payments. You’re best bet would be to send letters explaining your disability situation and that you only have a 40% lump sum to settle the debt. Some may accept, some won’t.
Get a written agreement and keep it, along with your payment proof, forever. Do not give the creditor direct access to your bank account.
If the credit card won’t accept your settlement offer, you could just stop paying and hope they sell the account off to a collection agency where you would be able to work out a settlement deal. Of course, the credit card company might immediately sue you.
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First, if you are on SSDI, it's important to understand that this cannot be garnished for credit card debt….
What you need to know about debt settlement firms and settling debt:
Your credit card companies are not going to offer you settlements like 50%, for example, if you are current (not behind) on your payments. Basically, the only way you can get into a position to negotiate settlements is to deliberately let your accounts go into default. This is exactly what debt settlement firms do….They take a monthly amount from you and use that to build a “settlement” account, which will go towards paying the “settlement” at a certain date. Your creditors will deliberately not be paid. They will not be happy about this.
If you are current on your accounts, this process will ruin your credit rating as your accounts will all go into default. Your creditors are under no obligation whatsoever to accept settlements from any debt settlement firm you hire. Their response might be to serve you papers and take you to court.
Debt settlements "can" be a viable alternative to filing for BK….you just need to be aware that if you currently have good credit…the debt settlement firms will deliberately let all your accounts charge-off/default to put them into a position to negotiate settlements. It can be a stressful and unpredictable process….As your accounts all go into default…you will get increasingly aggressive collection calls from debt collectors. It is "typical" that creditors offer settlements for defaulted credit card debt….They often do this in lieu of loosing everything if you file for BK…..
HOWEVER, you can never predict how any one creditor will respond to defaulted debt. They might decide to take you to court and get a judgment against you. Debt settlement firms have no power whatsoever to stop creditors from taking this action and they have no power to force creditors to accept settlements.
****If you have already defaulted on your cards….make your own settlement offers…you can do this on your own and it puts you in control. If you do…get all settlement terms IN WRITING PRIOR to paying them.
If you are NOT in default on your credit cards, the debt settlement process will ruin your credit and there’s no guarantee that your creditors will accept settlements. It can be an unpredictable and risky process.
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Contact the Credit Card companies on your own and work out something with them, don’t fall for those thieves on TV. They take your money and don’t pay the credit card companies.
You made the debt, you clear it up on your own.
Good luck!
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Hi,
I used “Credit Solution” to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58%.It’s legitimate.I came across this company on NBC News Special Edition.Check it out here:
http://CreditSolution01.notlong.com
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