Re: MBNA, Fleet, and Citi cards - can I settle?

Posted by Will (68.106.21.79) on November 23, 2003 at 17:26:25:

In Reply to: MBNA, Fleet, and Citi cards - can I settle? posted by sharpturn on November 23, 2003 at 14:27:16:

For anyone trying to get the best deal from original creditors on settlements prior to charge off, you have to act like you are going to do a bankruptcy. Bankruptcy attorney advice on prebunkruptcy is to stop paying all dischargeable accounts, stop using all these accounts, and don’t talk to anyone on the phone. The standard is to wait at least 90 days prior to actually filing. Any accounts where somebody stops paying, and stops talking will be red flagged as bankruptcy accounts. They are “bankruptcy out of the blue” accounts, never late, perfect accounts that just stop paying and don’t talk with the creditors. (Attorneys don’t want you talking, since you don’t have anything to say, and anything you say will only hurt you. It is far better to keep the creditor guessing, than to tell them of your intentions. They won’t know whether to sue you, sell the account, are you alive, dead, working, sick, insane, in jail, etc… Keeping them out of the loop helps you. So, if anyone is still talking or “threatening” a bankruptcy to creditors, they haven’t been to a bankruptcy attorney and made the decision yet. Actions such as not paying and not talking speak far louder than words) At this stage wait until the fifth month just prior to charge off. You will receive the absolute best offer of settlement then. At this point you should be able to get a lump sum payoff of 35% from the creditors. Get a bankruptcy attorney, they negotiate the best settlements with original creditors. Then you can also refer all calls to him so you don’t even have to hear the phone ring.

As to your questions.

Will the Credit Card company be understanding? No, the only currency they deal in is dollars and they don’t care why you don’t have the money, only how much they can collect. (Brain tumor, car accident, unemployment, save the excuses for church-the collectors aren’t interested.) You need to make them think your options include giving them nothing/BK.

Payment play,,? Not normally for less than 50%,, they want lump sums 35% minimum. If you want a payment plan, it will be for more than 50%

Best case scenario? 35% pre charge off. Anything less, they can charge it off, take the tax deduction, then sell the debt to debt buyers.

Collection Agencies? They’ll be on your accounts at 90 days. Most 90 day delinquent accounts don’t recover on their own.

What to discuss? What is there to discuss? They’re looking for money you don’t have. Plan what’s best for you, then move from that position. Take control of the situation. Make offers in writing. Best to have a BK attorney do it for you.

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