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Actually started settling

jeffm4688
Frequent Contributor

Actually started settling

Alright,

It's been a few years since I've posted here probably because I pretty much got out of the credit game almost all together when I had my business fail and I racked up probably 200-250k in debt. I defaulted on everything at pretty much the same time(late 2019, very early 2020) and had initially planned on filing chapter 7. Things ended up changing, I went from 1099 to W2 (**bleep** stimulus money) and found myself unable to qualify so continued doing pretty much nothing up until last week.

I have known for awhile I was going to eventually have to start the process of repairing this and have been attempting to build up some cash reserves in order to do so, of course it's not enough but what can you do.

 

This is going to be the first time I've actually started listing everything out, and it's going to be a hard one. I still don't want to see the number but what can I do.

Navyfed $65K -> Settled 16K lump sum
Chase $33K -> Settled 12K in 8 installments
Capital One -> 9500 settled $2400 lump sum

Discover -> $9100 settled $3600 lump sum

 

I plan on calling citi tomorrow, I don't think I have heard a single thing from this card since it charged off to be honest, I owe $10k am hoping to settle for $3k maybe 4k.


I am apparently being sued (I have not been served) for BoA ($6700) and synchrony ($8400) so will have to fight those when they decide to come in. I only know about them because some law firm sent me a letter telling me about a 'lawsuit filed against me' and knew about them, but I can't find any record of these in the online system in my state.

My big cards left are still USAA ($25K) and a Penfed ($21K but C/O & sold, no idea who it's even with at this point as it's not reporting). USAA is only offering me 50% regardless of if I do lump sum or 12 installments and doesn't seem to want to budge so I may end up having to take this offer. I then have one item between 10-20k which is a repo from penfed and a couple smaller items less than 10k. If they had waited to repo the **bleep** thing it's probably worth even more now!


I guess my main questions aside from airing out my story would be:

Has anyone dealt with penfed? I have not spoken to them since they took the car sometime early 2020 but am not sure what to expect, I assume they won't settle for anything decent and will want almost all the money if not all of it, wich has ultimately put them last on the list. Even my local CU has started offering 20% off, which is more than I expected from them but because it's less money for my dollar they will also be up later on.


My scores before all this settling and whatnot are actually about 590/600, fico 8 anyway. 2/3/5 are low/mid 5's currently, i bet because of the repo. I did finance a vehicle at 9% recently with $0 down so maybe those will go back up, especially as I attempt to figure out the repo.

I should also mention, I never defaulted on any of my amex stuff, mainly because they provide credit cards for my main business, and if I paid anything personal late they would stop charging across the board. I originally had a card with 8000 or 8500 limit which was reduced to 1500, and the others were like 1000 so they kept my limits small, but i've been thankful for them all this time as they have perfect payment history. They're all reporting maxed, I actually almost think I could wind up around a 650 if I paid them all off and let them report, but I have no intention of doing that just yet.


FICO 12/2015 - EX 692 TU 685
Amex Plat - NPSL | NavyFed Flagship - $22K | Penfed Plat RW - $21K | NavyFed Cash Rewards - $16K | Freedom - $22.7K | USAA Visa - $22K | BoA Cash Rewards - $11K | Marvel MC - $8K | Cap 1 QS - $8K | Amex Delta Gold - $8K | DCU Rewards - $7.5K | Amazon - $6K | Walmart MC - $6K | Discover IT - $5.5K | Jared - $4K | Besybuy Visa - $3K | IHG - $2.5K | Amex ED - $1K
Message 1 of 22
21 REPLIES 21
FireMedic1
Super Contributor

Re: Actually started settling

Credit unions dont go cheap. Make sure what the amount is after the auction. Thats only what you owe. Nice to see your clawing yourself out of the debt. Years from now it will be in the past and off your reports. Keep hammering the settlements until its all done. With most credit unions. You PIF they let you back in. Others may know about PENFED. NFCU will. Good luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 2 of 22
SoonerSoldier33
Frequent Contributor

Re: Actually started settling

Sure looks like you've made excellent progress so far. I have no experience with PenFed, so I can't help there. Hopefully they will agree to a decent settlement of the leftover balance after the repo was sold at auction. USAA is notoriously tough. 50% may be the best you get there. Your scores would probably not see much increase from optimizing utilization on your current AMEX cards, bc any revolving CO balances are affecting your revolving utilization as well. You're on the right track using your cash to settle the baddies. Hopefully others will have some PenFed advice. I know it's tough sledding, but keep up the grind to set yourself up for the future. I didn't have your level of debt, but FICO only cares about percentages, and I got my scores to high 600s low 700s once everything was settled. You can too. Good luck!






Team Garden Club as of Oct 2021
Message 3 of 22
jmw1
Regular Contributor

Re: Actually started settling


@jeffm4688 wrote:

I am apparently being sued (I have not been served) for BoA ($6700) and synchrony ($8400) so will have to fight those when they decide to come in. I only know about them because some law firm sent me a letter telling me about a 'lawsuit filed against me' and knew about them, but I can't find any record of these in the online system in my state.


Try harder looking for the lawsuits. They're there. They don't send the legal advertisements for lawsuits that don't exist. There is a case and docket somewhere you need to find. You also need to make yourself easily available for service so you don't get a default judgment without knowing about it. 

 

Message 4 of 22
jeffm4688
Frequent Contributor

Re: Actually started settling

Good to know about the score, I anticipate figuring everything out ideally by the first quarter next year. Would be nice to refinance my 9.99% car loan by the time my score comes up or that'll be up on the chopping block after all my debt is paid off. I assume this means an AU card or two with a zero balance/high limit can also offset my score and help nicely as I bring my debt back down to this planet.

My main goal at this point is to try and not get sued by anyone else, I guess im going to have to make a phonecall over to penfed and see if they'll put me on a repayment plan with small monthly payments for this second. Even if these guys get a default judgement it will be uncollectable for the moment as I don't keep enough cash in my account for them to pull and garnishment is not possible,


FICO 12/2015 - EX 692 TU 685
Amex Plat - NPSL | NavyFed Flagship - $22K | Penfed Plat RW - $21K | NavyFed Cash Rewards - $16K | Freedom - $22.7K | USAA Visa - $22K | BoA Cash Rewards - $11K | Marvel MC - $8K | Cap 1 QS - $8K | Amex Delta Gold - $8K | DCU Rewards - $7.5K | Amazon - $6K | Walmart MC - $6K | Discover IT - $5.5K | Jared - $4K | Besybuy Visa - $3K | IHG - $2.5K | Amex ED - $1K
Message 5 of 22
jeffm4688
Frequent Contributor

Re: Actually started settling

 


@jmw1 wrote:

@jeffm4688 wrote:

I am apparently being sued (I have not been served) for BoA ($6700) and synchrony ($8400) so will have to fight those when they decide to come in. I only know about them because some law firm sent me a letter telling me about a 'lawsuit filed against me' and knew about them, but I can't find any record of these in the online system in my state.


Try harder looking for the lawsuits. They're there. They don't send the legal advertisements for lawsuits that don't exist. There is a case and docket somewhere you need to find. You also need to make yourself easily available for service so you don't get a default judgment without knowing about it. 

 


I spoke to an attorney today who said he can see them, pending them serving me. I have no way to make myself easily available, the address they have on record is inhabitable currently as it's pending teardown. In my state the attorney says they will attempt to serve and then mail me a copy which should give me 30 days to responsd. He quoted me a fairly reasonable number to respond with an answer and attempt to reach a settlement but I'm gonig to hold off this second. He basically said I have a reasonable shot at it myself after speaking with me.

I called and made the discover payment official today. I am debating on holding off on the citi debt and seeing if they'll settle one of those lawsuits around 50% before even serving as thats what I had available for citi. I hear citi will generally settle around 40% and most of the time split it into payments so thats also a possibility as well.


FICO 12/2015 - EX 692 TU 685
Amex Plat - NPSL | NavyFed Flagship - $22K | Penfed Plat RW - $21K | NavyFed Cash Rewards - $16K | Freedom - $22.7K | USAA Visa - $22K | BoA Cash Rewards - $11K | Marvel MC - $8K | Cap 1 QS - $8K | Amex Delta Gold - $8K | DCU Rewards - $7.5K | Amazon - $6K | Walmart MC - $6K | Discover IT - $5.5K | Jared - $4K | Besybuy Visa - $3K | IHG - $2.5K | Amex ED - $1K
Message 6 of 22
fromusa
Member

Re: Actually started settling

The CU you are inquiring about that starts with "P" has experienced a very sharp downturn in quality of service.  settlement aside for a moment, they are simply outrageously bad on so many levels.  I cannot even begin to tell you some of the crap these guys do on a regular basis.  I literally scratch my head at times wondering how they are operating the way that they are.... It is atrocious.  Absoutely atrocious.  I read somewhere that these guys just bought a private jet.  Which other Credit Union do you know of buying private jets?  Name any company as of late (CU or otherwise) that bought a private jet in the last year and a half?  Okay, I rest my case.  This one did based upon reports.  While the rest of us are hurting, this one is out buying private jets... let that sit on your brain for a moment.  

 

As for settlements, I don't know if your luck will be any better, but so far, they are far more bureacratic than any other institution that I have come across in recent years.  Far too many people who don't know what's going on and could care less about the customer and way too much "formality" all of which does not do anything other than put the borrower in further peril and waste time so that they can continue racking up fees/interest.  This is unfortunate, but this is just what I am seeing.  I don't know what is going on.  And the whole process is a cluster.  The only way you can make the process anymore cumbersome is to place the debtor and the creditor on two separate islands and give them two tin cans and a string to communicate.  I am not exaggerating the level of inconvenience and ridiculous behavior with this one.  It is astonishing.  And nothing like what this CU was known for back in the day.  

 

On the collections side, they operate more like a cheap boiler room debt collector (an incompentent one at that) than a reputable, established, honorable institution.  And I am being kind with my words.  This may be a symptom of a broader problem with the overall economy as of late (because a lot of the overall economy is lacking in so many ways), but there is something wrong here.  There is something wrong.  I bet that we will soon hear of more horror stories because I'm usually a canary in the coal mine.  I hope others will be brave and come forward with some accounts on this one...

Message 7 of 22
Creditplz
Valued Contributor

Re: Actually started settling

Wow congrats on handling your debt head on... one of my distant relatives had debts she racked up after her divorce $190k and they still call me, my business, DW and pretty much our whole family to try and find her... I can't even find her these days. 

Quite funny since she had or maybe still has a government job in our state capital (I would think you'd need good credit). 

Im glad that banks are taking settlements in such a short term, usually I think they'd take less while statue of limitation is still a option for them. 

as for Penfed, I can't answer that as my accounts been locked since like 2017 after depositing $500 via ACH from my business account.. but maybe after SOL end they'd take less?. 

anyways kudos to you! And I hope you are able to refinance that sooner rather then later, happy for you OP!.

Message 8 of 22
satio
Frequent Contributor

Re: Actually started settling

You have made and are making great strides to address the issues. I have been there including 150k in back taxes. 

 

There *is* light at the end of the tunnel. I am living proof of it.

 

I can share one data point for USAA on an account from a family member who I helped along the way of restoring her credit. 

 

USAA7399258935%

 

The account was CO'd in 2014 and settled for the above in November 2019. The time since CO may have been the catch that got it below 50 percent.

 

All the best to you and yours as you continue your credit recovery.



Message 9 of 22
RehabbingANDBlabbing
Frequent Contributor

Re: Actually started settling

You need to focus on the ones suing you first. I've been settling debt for the past couple years. I was only sued a couple of times, once by Bank of America and once by a debt buyer that bought my Citibank debt. I beat the Citi one and settled the BofA one before court at 50%. Debt buyers can be beaten, so

dont pay them, just get a debt lawyer. They go away after you beat them, so save your money and just pay a lawyer. I don't think USAA sues people. I had a charge off with them and settled it for about 43%, mainly to improve my credit, not because they sued. As for PenFed, I had a CO with them. They kept reporting it incorrectly, so I sued them for FCRA violations. I ended up settling a $14k debt for $3k after suing them. They are pretty incompetent. They sold the debt after we signed the settlement papers then they had to buy it back from the debt buyer. I don't think they like to settle for lower amounts, but the good news is they will probably sell your debt to someone else who you can settle with for less or beat in court.

Message 10 of 22
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