Has anyone had any luck settling with Bank of America Credit Cards?

[fishbjc]

There is a dark side to debt settlement. Many of these will appear on your credit report as a settled debt rather than paid in full. If you fail to get a written statement from the collector that you no longer owe anything on the debt, they may sell the remainder to another collection agency. In addition, any savings are reportable to the Internal Revenue Service (IRS) as forgiven debt, which is considered a form of income. Collection agencies are required to submit Form 1099 to the IRS to report any forgiven debt of $600 or greater. If you have negative net worth, you may be able to avoid taxation on forgiven debt. If this is the case, you should seek the advice of a professional tax preparer.

There is a dark side to debt settlement. Many of these will appear on your credit report as a settled debt rather than paid in full. If you fail to get a written statement from the collector that you no longer owe anything on the debt, they may sell the remainder to another collection agency. In addition, any savings are reportable to the Internal Revenue Service (IRS) as forgiven debt, which is considered a form of income. Collection agencies are required to submit Form 1099 to the IRS to report any forgiven debt of $600 or greater. If you have negative net worth, you may be able to avoid taxation on forgiven debt. If this is the case, you should seek the advice of a professional tax preparer.

[Anonymous]

I am aware of the 1099.

Although I am ok with paying the taxes, it seems that the amount of savings makes sense.

Plus, does it help if the company I am dealing with is a member of the BBB?

[Anonymous]

Just my opinion.

Possibly with a consolidation installment loan, maybe longer than 5-7 years. What ever you do, you need to remove all balances from credit cards in to 1 fixed installment. Whether a loan or DMP. Might as well include your car in to that too.

Your income does not support a $2000 mortgage payment. Have you thought about refinancing. It's double what your income supports.

Finding another roommate is very important after this one moves out. Or a second job or both. You need a total of $1500 a month more than you have to pull out and be safe imo.

Selling your condo is another option if the market price will get you out. Renting is less than half the cost of your condo. Talk to a DMP company to help you with options. Act quickly, don't wait.

I don't mean to make this all sound bad, not at all, I do believe you can get out, it's just going to be hard, but definitely you can do it.

May I ask what your mortgage payment was when you first got it before rates went up?

Message Edited by ilovepizza on 02-15-2008 04:48 PM

[Anonymous]

WOW-

I did not see your income it the other thread-

This is going to be tough and I appoligize.

I would have a hard time with those payments with my income-