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Hey all,
While I'm not completely new to rebuilding, I am new to charge-offs and possbile judgements, and I'm undecided how to move forward.
About a year ago, things hit the fan and I stopped paying on my credit cards. I have charge-offs from Bank of America , American Express, and Navy Federal. Citi will soon charge-off. I have about $40,000 in unsecured debt that has gone bad.
I was thinking about filing for bankrupcy, but I am starting to receive settlement offers from some of the creditors. This made me wonder if I should work on settlements, pay-for-delete offers, and debt verification.
My main concern is being sued by Navy Federal, as they are more than half of my debt (about $25k). My understanding is they don't hesitate to sue.
I currently reside in Texas. While I understand some protections I have here, I was also told by a lawyer that since my employer is headquartered in California, I could still face garnishment.
I sent out DV letters to all of the collection agencies last week to get the rebuilding process started, should I decide not to file for bankrupcy, but I was hoping to get some opinon from others.
Thank you!
I am no expert but I live in Texas, too and I have always heard they cannot garnish wages except for child support and taxes. Now, they can get a judgement... I had a judgement from capital one that was paid when I sold my house...but it sat there for years, uncollectable.
What is the DoFD, is any of the debt out of the SOL?
I don’t know about your state but it mine garnishments don’t happen until after judgements.
One has plenty of time to figure it out if prepared.
It also dramatically varies based on income and family size.
Filing for BK before judgement stops it all in its tracks.
You have time between being served and your court date.
DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!
@Anonymous wrote:What is the DoFD, is any of the debt out of the SOL?
SOL in Texas is 4 years. I'm only at about a year for DoFD.
@Shooting-For-800 wrote:I don’t know about your state but it mine garnishments don’t happen until after judgements.
One has plenty of time to figure it out if prepared.
It also dramatically varies based on income and family size.
Filing for BK before judgement stops it all in its tracks.
You have time between being served and your court date.
Thanks for the advice, Shooting-For-800.
Are you suggesting that I watch how things play out, and then file for bankrupcy if I'm served?
Do you have $20,000 to settle your cards?
I went through years of trying to pay my cards off, settled 7-8 and then ended up with a BK anyway.
Settlements can range from 20%-50% if negotiated correctly.
The longer you do not pay, the lower most will go.
Most credit cards do not file lawsuits.
If they do, BK stops all legal action.
I guess what I am saying, is that it is kind of all or nothing.
If you can settle ALL of them, that is an option.
If not, it is kind of pointless if you can file Ch7 without complications.
Another option is to start saving money and just wait until they fall off your reports and settle whichever ones file lawsuits as they file.
DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!
Once the debt is delinquent and until the SOL has expired, the creditor has the right to file a civil action seeking a judgment.
That is totally discretionary on their part.
You could contact them and try to negotiate a payment plan under the condition that they not bring civil action or refer to a debt collector as long as you continue to meet the agreed payment plan.
That will then become an additional contract agreement that will prevent a judgment or collection provided you continue to make the agreed payments.
Another thing to worry about....
if you do settle... can you afford the 1099-C tax bill that they will send your way? (you may be able to say you are insolvent to IRS to avoid it) ask a CPA
AMEX threatened suit on me for about $11,000
@Shooting-For-800 wrote:Do you have $20,000 to settle your cards?
I went through years of trying to pay my cards off, settled 7-8 and then ended up with a BK anyway.
Settlements can range from 20%-50% if negotiated correctly.
The longer you do not pay, the lower most will go.
Most credit cards do not file lawsuits.
If they do, BK stops all legal action.
I guess what I am saying, is that it is kind of all or nothing.
If you can settle ALL of them, that is an option.
If not, it is kind of pointless if you can file Ch7 without complications.
Another option is to start saving money and just wait until they fall off your reports and settle whichever ones file lawsuits as they file.