threatening lien for unsecured CC

[Anonymous]

I'm negotiating with several companies to settle unsecured CC debt.  Most are willing to consider something in the range of 30-65 cents on the dollar, but Advanta seems intent on threatening to escalate with lawsuit, in an attempt to place lien against property for unsecured debt.  I don't doubt they are within their rights to try, but what is the experience of others as to whether this is more bark or a likely bite if I call their bluff?  They are offering 75% settlement now, which is not bad but not enough for my limited funds compared to other debts I am negotiating.  Any thoughts?  Thanks.

[Uborrow-Upay]

Just to clarify, is this business debt or personal?  If business, is it PG'd?

[Anonymous]

Yes, Platinum Business card, personally guaranteed.  Thanks for response.

[2wheel]

Are you filing bankruptcy? ch 13 ch 7

[Uborrow-Upay]

I think this could be better addressed over in the business credit section.  One of the mods should be here shortly to possibly move this for you.

I'm sure there's quite a few folks here with Advanta account experience, but I am not one of them.  Sorry.

By the way, welcome to the forum.  And, here's a link to the business credit section, too.

Message Edited by Uborrow-Upay on 08-11-2009 08:17 PM

[Anonymous]

not expecting bankruptcy at this point, no.  As for the forum sections, it is a personal debt on my SSN, so I'm not sure about the business debt section, but whatever the mods think is fine.

[Uborrow-Upay]

I'm only suggesting that because business credit is handled a bit differently when it comes to collections.  Consumers have more protections than business debtors, and I think some of the folks in the other section could assist more.

But then again, a lot of us are all over the place on these boards, so pick 'em, choose 'em...or post in both.

That'll cover the bases!

[Anonymous]

OK.  I understand.  Many thanks for your suggestions.

[creditwherecreditisdue]

You better take out and read the cardholder agreement and see exactly what kind of guarantee you agreed to and what their remedies are in default. You make have a serious problem. Also, do not forget that the amount of debt you negotiate away may be consider taxable income to you and you may receive a 1099 for it. This is a complicated issue. Best to make sure you understand the full implications before you trade a debt problem for an IRS problem.

[Anonymous]

Thanks for your ideas.  I actually have no problem with settlements or 1099s-- I have huge loss carryovers.  I also don't dispute their legal ability, re:cardholder agreement-- and my FICO is completely shot already at 460-- what I was wondering was how likely they are to proceed with litigation, and how fast that process works, as opposed to using just the threat of litigation as a negotiating tool.  I'm liquidating assets as fast as I can to settle these unsecured debts-- I guess they are betting I won't be bankrupt before they get a lien on my last piece of property.  Seems more risky for them than coming down another 10-20% on the settlement, but that's just my perspective I guess...