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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Im working on settling debt. The last credit card company

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I'm working on settling debt. The last credit card company is real work. I sent in several settlement offers last month. All rejected, highest was 55%. They had me send in income info and a hardship letter last month. One of the collectors talked me into sending one month payment so it would not hit 100 days late. Big mistake, and they would not settle for under 90%. So I waited a month. I sent in an offer letter last week for 50%. They sent me an email with a phone number to call. When I called they said they want a new hardship letter and new income documents. I got a small raise for about $150 a month, that will be reflected in my pay stub document. Last time I blacked out the deductions and bank acct info. They will likely argue with me to give them the extra $150.

I think I should just refuse and say I'm through playing games. I gave you the info once. Then wait another month. Advice please. ...


Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on


At this point it would be better to not pay them anything for atleast two to three months, once they know you cannot afford any payments, they will work with you,


another option is to threaten a bankruptcy filing,


and see if they will accept a payment plan for less than 50%


They still have to sue you and obtain a judgment, so you will have time,


sometimes it is best to wait for them to sue you, and settle the debt in court,

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Customer: replied 3 years ago.

Thanks. One of the collectors was chatty and told me that they charge off after 180 days. I'm assuming that would mean they send it to a collection agency before they sue.


I had a hard time with Citi so I stopped talking to them for a while. I called back finally, and they sent it to a collection subdivision and the collection agency instantly said, "Oh, you will settle, great, and offered me 40%" which I jumped on. Glad I'm almost done.


This last one is Key Bank. Guess they all have different policies.


Also, why are people afraid of being taxed on forgiven debt when they don't think twice about entering a sweepstakes drawing or gambling. Both are taxed as income, right?


Right both are taxed as income, also you may have a better chance at a settlement with a collection agency, I would not settle for more than 50 percent
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