How does credit card debt settlement work?
As you know, debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount. If you are in serious debt, debt settlement is a much better option than bankruptcy. A bankruptcy will be listed and hold your credit score down for 10 years, while the delinquent payments incurred while enrolled a Debt Settlement program will be there for only 7 years (and in some instance, even less). So at a minimum, your credit report will be cleared at least three years earlier when using Debt Settlement company as opposed to bankruptcy. Another important factor to remember is that a typical debt settlement program ultimately resolves your debts for much less than other debt relief options. And, unlike bankruptcy, you won't have to sell your house or other assets in order to free yourself of your liabilities. It is better to seek help from any reputed debt settlement company. Such companies can handle it properly as they are experts in that field. I took help of freedom debt relief to get rid of my debts. I have joined their debt reduction program one year back and now I am almost debt free.
If I am being sued for credit card debt (for missed payments) and I cannot afford an attorney, what are my options?
If you are in the US, you have a number of options.First of all, never believe anybody who says you cannot win. Creditors lose all the time because they do not have satisfactory proof and / or do not follow the rules of evidence. If you are set on contesting the matter, you should appear and present your case. Question their evidence. Having a lawyer helps, but there are resources that can help you, too. Try credit boards.com. It is completely free and there are numerous real, experienced experts there who can offer guidance.On the verge of of a judgment, very, very few original creditors will entertain a a settlement. Why should they settle after going so far and they will soon have a judgment in their hands which they can execute and get whatever it is that you offered in settlement? A judgment can be executed. Your offer to settle is simply mumbo-jumbo b.s. that you can welch on any time you feel like it. If the plaintiff is, however, a debt collector, they might settle. It doesn’t hurt to try.You could just not show and let the creditor obtain a judgment. If you are lucky, smart, resourceful or just extremely poor, it’s unlikely they will get anything from you with the judgment anyhow. That said, judgments live a long, long time and they can come back years from now and grab any property you might have accumulated. Judgments can sit on your credit report for a very, very long time.Bankruptcy is an option. Bankruptcy also sits on your credit reports for a long time, but isn’t a disastrous to your credit as a judgment. Still, you can only file bankruptcy once every ten years so it pays to choose your battles wisely. You don't want to waste a perfectly good bankruptcy on a meager $500 debt. You should obtain legal advice if contemplating bankruptcy.
Is it ok to pay settlements offered from creditors?
If you are trying to repair your credit and the offers that are being made are from Collection Agencies, then yes take the settlement, however negotiate with the collection agency on the mark on your credit report. Tell them that you will accept the debt as yours, and will mail them an money order for the amount that you both agreed on, however you would like the negative remark removed from your credit report, most will agree or at least will simply list the debt PAID IN FULL.. If you are dealing with collection agencies, they probably purchased this debt for pennies on the dollars, so whatever they can get out of you would still be more than they paid for the debt. NEVER give them access to your bank account, and since the debts are 4-5 years old, offer them 25% of the balance, along with the account being removed from your credit report, wait until you get the agreement in writing, then send them payment by money order only.
How do I get started with debt settlement?
Well, first and foremost, I think everyone should make good on their personal debts. We all should because it is our responsibility.That being said, if you are in dire straits and cannot breathe under the weight of debt then settlement is a step you can take to free yourself up.I have little respect for the banking institutions that give credit cards to people who do not deserve them. So I have no problem making them suffer as well….Ok, enough of me going off on a tangent.What I coach people to do in these situations is to reach out to the debtor and offer a settlement.Most will laugh and tell you no chance. I then coach them not to pay the minimum balances any longer and focus on survival. When you get where you cannot pay them any money and don’t for about a year, they will either try to turn it over to a debt collection agency or an attorney. Attorneys are extremely expensive so they will then either call you or have a third party collection company call you.It is at that point when you need to make an offer of about $.15 to $.20 cents in the dollar. In doing so you need to get an agreement in writing and do NOT give chess to your checking account no matter what.In making a settlement offer, you must have to have the funds in hand and pay them via cashiers check or money order.I have successfully helped several people do this so I know it works.Settlement of 15% to 35% is very possible but it will ding your credit report.If they decide to ignore any settlement options, they might try to take it to court. Again this gets expensive for the debt buyer and they refuse gambling putting it into the hands of the courts.Try again to settle and see if this will work. If not, they may get a judgment against you and garnish your wages.Last do NOT go to debt consolidation companies as they will make a bigger mess of your situation. Do not go this route. I am coaching another couple of people who did that and are in worse shape.I hope this helps!God Bless you!!!
How to stop creditors wage garnishment?
The laws and procedures vary by state, so I encourage you to consult a local attorney for further advice. As an attorney with experience setting up wage garnishments, I can offer a few comments. 1. Creditors are almost always willing to listen even if they have a judgment. Try negotiating a payment plan you can live with. 2. If you are appealing the judgment, most states will require you to put up collateral for an appeal bond. 3. You might be able to file a claim of exemption. Some states have laws that allow judges to reduce the amount of garnishment due to economic hardship. If you live paycheck to paycheck and need every dime to pay rent, the judge my reduced or stop the garnishment. You should see a local attorney or maybe the court clerk to get the necessary forms. 4. Bankruptcy is an option to consider. Filing bankruptcy will stop garnishment right away. Consult a qualified bankruptcy attorney.
Should I settle credit card debt? Pay in full? What are my options?
Cavalry Portfolio is a horrible, sleazy outfit...it's about the worst collection agency in the nation...Don't send them any written correspondence admitting to the debt as they'd use this against you http://www.budhibbs.com/collectorpages/c... - Pay for deletes do not work with charged off credit card debts...a charge off stays for7 years on your credit report regardless of what you do. - When a debt collector first contacts you, you have rights under a federal law called the Fair Debt Collection Practices Act. Your first step should always be to request validation of the debt. Even if the debt is valid, request validation anyway. Send them a letter via Certified Mail + Return Receipt (do not use regular mail) stating: Per the Fair Debt Collection Practices Act, I am requesting written validation of this alleged debt, to include a copy of the original signed contract with my signature. I cannot respond to your claim until validation in this form of a copy of the original signed contract with my signature has been presented. -------------------------------------- To speed things up, fax this same letter to the collection agency. Free fax service at: http://faxzero.com When they call back, tell them: I have sent a certified letter to your office officially requesting written validation of this alleged debt per my rights under the Fair Debt Collection Practices Act. Per this federal law they must provide written validation within 30 days and they must cease collection activity until they send you written validation. ================== - Debt collectors love nothing more than to pretend to be (or represent) attorneys when this is not the case to scare people into paying them. If they threaten you with a lawsuit/legal action, then ask for their attorney’s full name and license number in the state bar association. - The way to pay off defaulted credit card debts is to settle for less....If you have the money, see if they'd settle for $800 in full.....get all terms in writing BEFORE you pay Assume that any promise from Calvary Portfolio is a lie...Don't give them your checking account numbers.
Do debt collection agencies literally 'buy' debt from credit card companies or get 'paid' when they 'collect' debt from consumers?
Whether or not the debt was bought or not is irrelevant. You owe the debt. Rarely does a consumer have a chance to settle for less than 50% on a credit card debt. When debt is sold, which is not often, it has been charged off for a few years. You are trying to empower your knowledge to justify your negotiation methodology. If the debt was bought, that specific debt was not singularly bought. Let’s assume YOU bought $500,000 of debt for 5 cents on the dollar. How much of that debt do you imagine is remotely collectable?You may send the $4k & write “settlement in full” above the endorsement along with a letter stipulating such as well. Based on what I am reading, odds are good that they would accept. I’d send it certified.You could very easily not need to pay it either. Since you believe have an excellent credit history, is the statute of limitations nearing? I would doubt your credit history is excellent since have to utilize your car to secure a loan. Depending on your state, the statute for seeking judgment could be applicable. Meaning, while it can remain on your credit, nothing they can do to seek judgment.