Just found your channel today. Learned a lot already. Capital One is getting ready to charge off the debt in 8 days. I owe $13,898. I could pay $309 to keep it there for another month. I will be getting a tax return in a few weeks that I could use to settle. Would it be better to pay the $309 and settle with Capital One? Or let the charge it off and settle with a collection agency? Thank you!
At the time of this reply, Capital One has a post charge of recovery department accounts go into for a couple months. I would wait a few weeks and negotiate a deal then. If you need help let me know.
Thank you for your reply. I was able to settle with Capital One. I received a "Settlement Agreement Confirmation" letter. Could you please explain what this sentence means? And what it will do to my credit report?.....not that I have any credit left. :) "We'll consider your account paid in full for less than the full balance." Thank you for your help!
What do you do if you can't pay credit cards and only income is socialcedurity and have no money.will take a couple years to save to settle. They are not in collections yet. Only 90 days behind
Less than 3000 in medical debt, 3 separate accounts, same creditor, same debt collector. 2 in Washington state, 1 in Oregon. Providence hospital = creditor Professional credit services = collector. I need sol info, and one other question. Will it ever fall off without paying? Or is it only that they can't sue outside sol but they can report forever?
If you are thinking about settling debts for less than the balance owed, it does not typically happen until you are late. And the best outcomes are generally not until you are several months late. It torches your credit scores as a result.
Michael....you mentioned that folks can leave a comment & ask you about laws in their specific state regarding when states can no longer sue on uncollected debt. Here's my situation: I live in Alabama. I have around $3600 left on a medical debt that started in 2014. I've only been sending them $10 monthly (just to avoid a lawsuit), while I pay off/settle other debts. I'm not currently in a position to settle with them for even 50% of the $3600; but even if I were, they're unwilling to settle. The debt was placed with an outside collection agency, despite the monthly payments in January of 2016. I've been making phone calls and writing letters to both the hospital & the collection agency in the hopes that they will wipe the slate clean, offer a retroactive type of charity care program, or at least offer a decent settlement - all to no avail. I've just discovered you on RUclips; but look forward to combing through your videos for help with this! Thanks for any info provided!!
Sending the $10 a month is not a way to prevent the account from going to collection, or to prevent from being sued. That has to be a mutual agreement, and one in writing is preferred. Those monthly payments will likely mean you renewed the SOL in Alabama each time. But talk with an experienced debt collection defense attorney to make certain. Even if you did not reset the SOL with the payments, there is a difference between open accounts, like credit cards, and written contracts in AL. The SOL could run for 6 years. I do not see many medical bills getting cancelled or retroactively gain hardship reduction or write off. That is even more the case if insurance covered any of the bills. See this video for more about hospital and medical debts: ruclips.net/video/DKEVRqmpp7s/видео.html
You're right. That small monthly payment did not save my account from going to collections, which is where it currently sits. When the collection agency contacted me, I told them that I had been paying the hospital $10 a month and I would continue to pay that amount. So, now I receive "bills" from them reminding me of "our agreement". Before the debt left the hospital, I was declined charity care - even though our income is below the poverty level. I was disputing the debt with the hospital (and I did not have the cash on hand), so I refused to pay the settlement they offered at the time. Given my naivete, I assumed that I could appeal to their common sense and get them to remove the portion of the debt that I disputed; but nothing has budged. Like I mentioned, the debt is in collections now. If you were in my shoes, would you stop paying the monthly amount and wait until they serve papers to sue - hoping for the SOL to run its course? And in the meantime, put back some money to settle in case I'm sued? I've seen your video on timing your settlements...that's why I wanted to get your opinion on what move I should make from here forward.
It would just take to long to save up a reasonable amount to settle with at the rate you are able to put money aside right now. Can you save up more and quicker? Can you count on a tax refund or some other lump sum of money?
How much would you recommend that I save up? The full amount of the debt? And when I save this amount, then what steps would you recommend I take? I have no tax refund or other lump sum of money to look forward to.
Was just told by a prospective bankruptcy attorney that I can't file bankruptcy because I would lose everything from another lawsuit that is being filed on my behalf, and I also anticipate being sued for not paying rent. They said that it would have to be a lump sum payment debt settlement. Without signing the retainer, what are they really saying? That I'll pretty much still lose everything even though they told me I would lose everything if I filed for bankruptcy?
What do all of your other debts besides unpaid rent add up to? How late are you on payments with credit cards and loans? Do you have an idea of what an award in your favor may be from the lawsuit you could benefit from? Do you have an idea of when the outcome of that lawsuit will be?
@@MichaelBovee 1) I would say about $42-45,000 2) Almost 2 months on one, but I have spoken with them already so they know what's going on 3) Possibly $20,000 possibly more no idea. 4) No idea, but I will try to find out tomorrow.
Depending on who the creditors are, you could be looking at settlements around what you estimated the lawsuit ruling in your favor would be. If that lawsuit took a year or more to play out, you could be looking at being sued by some of the creditors you are late with, or the back rent. I suggest scheduling a phone call with me so I can learn more about the creditors involved, and your prospects for settling at some more dynamic savings: consumerrecoverynetwork.com/free-debt-consultation/
It is up to 7 and one half years from when you stopped paying for credit reporting, and the 5 year reference was the SOL to use the courts to collect. If payment stopped in mid 2010, than it is has been 7.5 years. Is there a debt collector reporting, or is it the company itself still?
Michael Bovee its a collection company, my first priority is SOL, but I seem to be golden with that. You said in another video that collectors rarely sue for debts out of the SOL right? If these guys do, I will counter sue, I have got an affirmative defense. My second priority is my credit report, they have Re-aged it, it’s has survived multiple disputes.
Hi, I just received a letter in the mail from a collection agency called Midland Credit Management and the letter is stamped with "Final Notice." Midland Credit Management bought my Best Buy credit card account from Citi Bank and the letter states they are the current owner of the account. The letter starts off my saying they are "demanding payment in full by 10/30/2020" and saying that "this is a demand for full payment of 2,679.08 and that my failure to reply will result in an "attorney review......" Then, it goes on to say that if I don't reply they plan on sending my account to an attorney in the state of MO. Lastly it says "Ps: Your prompt attention is necessary to avoid the possibility of attorney review. Pay online..." It seems like they are threatening me with words like an "attorney review", tte "possibility of a attorney review, if you don't reply ", and "we plan on sending your account, we intend to file a lawsuit against you, but before a lawsuit can be filed an attorney must review your account." I do not know how seriously to take these people. "My question is do you have any experience with this company as to whether they usually sue people and secondly in your experience what do they usually settle for and what should I start off with in terms of a negotiation amount. What should I do I'm freaking out.
That letter from Midland Credit indeed means your account is on their legal track for sending to an attorney, who is then highly likely to sue if you can arrange something to prevent it. If your goal is to prevent it, doing something now is better than doing it with an attorney later, as the settlements are often higher. People have a hard time getting half off from Midland, where professionals regularly do. I estimate you could get a year to pay half off too (though do a lump sum whenever you can). Check out my page on settling with Midland Funding. If you want help schedule a call with me at the bottom of the page: consumerrecoverynetwork.com/midland-funding-mcm-encore-receivables/
Michael, when seeking a lump sum settlement, how far out can you typically schedule that. Waiting on a divestment of funds that I would use to settle my cc debts and they might not come through for 1-3 months...if I am in the sweet spot for getting a good settlement, how long will they wait for the lump sum payment? Thanks!
You tend to need to make the payment by the end of the month you are having your dialogue with them. This goes for the vast majority of negotiations no matter where you are in the life cycle of a debt: ruclips.net/video/HnSsapKVeTo/видео.html One way to work around your preferred timing and funding alignment issue would be to not do lump sum, but a payment plan on the settlements. We often get at least 3 months installments. This can include smaller payments the first 2 months, and a balloon payment at the end. This helps to prevent missing out on great opportunities, while eliminating aggressive collection risks.
I have some more specific questions I was hoping you could answer. My husband and I both have quite a bit of debt between the 2 of us. He owes USAA 7,208 and navy fed 12,946. I have 2 separate accounts with chase. I owe 3965 on one of them and 2901 on the other. I owe usaa 6799 and 3000 to citi bank and 2400 to us bank. We are going to be getting a pretty hefty amount on our tax return this year and I’m trying to figure out the best way to go about settling them. Everything has been charged off except for navy fed and have received settlement offers around 50-60%. Our tax return is around 8k and we will be able to save up more over these next few months. I’m trying to fix our credit as much as possible as soon as possible. Thank you!
I would start off with US bank and Citibank, as they sell to debt buyers who can be aggressive. Chase, and your credit unions, do not currently sell debts. USAA will often allow 40% over 12 months, even through the debt collection agencies they send your accounts to, so I would take that in order to knock down the other ones.
If you have not read through my 10 part article series about settling debt yourself, check it out starting here: consumerrecoverynetwork.com/credit-card-debt-settlement-program/
Some debt buyers collect on accounts they purchase using their own resources. Portfolio Recovery Associates and Midland Funding (the two largest) are a good example of this. Many debt buyers purchase unpaid accounts and then hire collection agencies to collect for them. Cavalry, Resurgent, Unifund, and many others are a good example of this. Debt collection agencies can work for creditors and debt buyers, but they do not buy or own the legal rights to the accounts they collect on. I should point out that some believe any debt collector they hear from bought the debt, including attorneys. This is not true. Most debts are not sold.
Oh gotcha! Because I was under the impression that a company such as frost- arnett is a debt buyer but from further research it seems to be a debt collector
Hey, Michael! Great video, as always. Quick question; is it unheard of for a creditor to accept a settlement that is structured around a payment plan as opposed to a lump sum? And if so, I have an interesting alternative idea I want to run by you really quickly. Thanks!
I'm from Texas. Can a credit card from 30 years ago sue me and put a lein on my property. I'm sure it was paid off. But I have no proof from 30 years ago! Plz answer.
I responded to this on the other video too. Read about how to handle debt collection scams here: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
Question about SOL... What happens if you move states? The SOL where I am is 6 years, but what would happen if I moved to CA where it's 4 years? At what point would the SOL for CA apply to my debt?
Has a lawsuit already been filed? Talk to an experienced debt collection defense attorney in CA about your concern. I typically see debt collectors sue people in their state of residency. And that would likely mean the California SOL applies if you move their. But their are tolling concerns, and perhaps other issues that could come up. Talking to an attorney would clear things up for you.
I am finding mixed info on Illinois statute of limitations. I have found one site saying 5 yr and another said 10 from the last payment. Do you have any clarification? Thank you.
The SOL can vary in many states depending on the type of debt at issue. The SOL on a credit card in Illinois is 5 years, while other debt types, like on a written contract, could be 10 years.
I was sued by PRA 18 months ago and a judgement was issue, i paid according to the judgement to rausch sturem, however my credit report is still showing that I owe PRA the original amount.
Are you making payments on the judgment, or did you pay a lump sum to resolve the debt? If you are making payments, PRA will not delete the account until it is all taken care of.
@@MichaelBovee The aggreement was for 12 months worth of payments. I paid more than what was lined out in the agreement and had it paid off early 4 months ago. I have written both PRA and their law firm they used to sue me and made attempts to call, and I get no response.
@@tiathompson6674 I would both call and write to PRA with an outline of the situation and ask what gives?! Their policy is to delete accounts from credit reports once the account is resolved. This is a new policy as of more than a year ago, but I have not heard of any change to it, so hold them to it. I would give them another chance to respond to my phone calls and letter (not the law firm as they have nothing at all to do with credit reporting), and then I would file complaints with the CFPB. Again, you are not asking for any favors here, just that they follow their own policy for credit reporting.
Can you give me an order of importance of starting to pay these debts off and settlements with the creditors?Divorced 3 years ago and quit paying on cc due to trying to secure my job, save my house, and pay $15K to IRS. All that is done and now to tackle the other demons. 1. BOA one card is $12.500 and the other is $7,100 I am currently trying to be served papers but haven't been home. Was told to contact court to notify when I can be served. Was with FMA Alliance in March'16 and not sure if they filed or an attorney did. I need these two to be taken care of very soon. Haven't paid since 2014. Never spoken to anyone about this debt either. 2. GE Capitol Retail Bank (Lowes) $11,771 haven't paid since 2014. Was supposed to be ex in divorce agreement, but card is in my name. He's in Jail for 2 years for DV and has nothing to get. Have never spoken to them about this account. Was with midland who sent $3500 settlement by mail offer back in January but I never responded since I had nothing to offer at that time. Am I still liable for this since it's in my name even though he agreed to take it as his part of divorce agreement?3. Synchrony Bank $1,500 which is now with Monarch Recovery Management and has just been placed there with a letter today saying I had 30 days to dispute this debt. I have paid on it in the last 12 months so it's the most current. I am self employed so I'm not sure they can garnish any wages. I have a home that the deed is still in both our names (3 years after divorce) but the loan is in his name only and I can't switch it over since I have a 550 credit score- and I have enough equity to pay all this off, but can't due to the credit report score. I do have $4000 to use right now to pay on something. I can get more in the next 6 months if I can buy some time. I would love to have all this paid by end of year and avoid court if possible. I have no interest in filing BK since I have come so far in getting out of the hole I was left in with 2 kids single mom. I have no family to help. So it's just in my time that I can fix this. I just need some direction in where to start and what to expect from these collectors. Should I contact BOA and try to get a settlement before I am served- since I shouldn't know about it yet. Or should I go to courthouse to get papers and file a denial then contact BOA? I owe them about $20,000 with all the fess added in- I only should owe about $14000 before the fees. I wont have 50% of that for a while, maybe 3 months or more. I could probably come up with $6000 in the next 30 days though. Thanks for all your help!Jackie - Kentucky
Settling with Bank of America is the priority, and for a lump sum. But perhaps you can resolve a few things at once. The timing to settle with Midland before they sue is good. Assume you could settle with Midland for less than half and with monthly payment terms. That could prevent the next fire from starting. Is BofA suing on both accounts or just one? Assume you are settling for half the amount they are suing for. If you can file an answer and delay the day to fund a settlement a couple of months, I like being able to put out all the fires, wither real or potential. The Synchrony account can be knocked out for a reasonable settlement. But it is not the priority the others are. You are at risk and responsible for paying the debts your ex could not. The divorce decree does not shield you from that. I would wait to be served. If it takes them another month or two, that is more time to save up. Call in for a consult if you would like to go into more detail, or want help. You can reach me at the number in the email exchange we had.
I don't know if it is both BOA or not but they generally send me a separate letter for both accounts at the same time so I am going to assume it is which would be around $20,000. I haven't been served yet to find out. Should I call the last person that sent me a letter and ask about a settlement- it was FMA Alliance. I logged onto Midland website to see my offers and it says "Your account is being serviced by an affiliate of Encore Fenton & McGarvey Law Firm P.S.C. . Please contact 5025606700 for more details." So I am assuming that it is now in a lawyers office and not midland anymore. Should I call them to see if they will honor the $3500 settlement which is 30% BTW and make that in 3 payments? (although this will take away from my BOA stash I have to offer them)The Synchrony bank I can knock out while all the above is going on so I am not too concerned with that right now. I do have several other smaller $500 or less debts that should have been my ex's too that have come back on me. They are on the bottom of the totem pole but don't want to be sued over them either. I didn't mention that I have about $60K in student loans that are behind as well, so not sure if that helps me in the long run of settling with BOA for less or not. I have kept in contact with them and they know my situation and are working with me so no worry about suit there. If I could just get a bank to allow me to use some of my equity in my home I could make all this go away immediately, any thoughts on this? And I am not one to repeat this mistake and get back into debt again, since this has all stemmed from a DV divorce. The current home loan in my ex's name is with Wells Fargo. They won't speak to me about the loan since its not in my name. I make the payment and it's applied to the loan each month. My credit score is around 550 so I haven't even asked them about it yet. It will be several months before I can come up with $10,000 which would be 50% of the balance of BOA. If the previous midland account offers me a settlement of $3000-3500 should I just go ahead and take that from my BOA stash to put that fire out now? Or should I call BOA and get a feel for what they expect before I contact the old midland account?
Let's connect on the phone Jackie. It will be easier for me to ask more questions and offer more detailed feedback that way. You are usually limited to dealing with the law firm on the midland account now. It could mean 30 percent is off the table, but maybe not. After I get all the details I need I may surprise you by suggesting that being sued is better given all that is going on. You can manage things in a formal court setting, using timing the court requires, or is too busy to schedule quickly, to your advantage. You really have no shot at the equity until all this is resolved, but you have a path to that without touching the equity. I can map that out for you when we speak.
Michael, I want to resolve this debt because I am worried that the card co. will start asking me to pay it anywhere from 1 to 10 years from now and I am planning on retiring in 2021 and don' t want this to rear it's ugly head. I also wonder if I keep calling and asking about it if they will start coming after me for this debt. I only called the one time last week and found that it was in their bankruptcy dept and Charged Off to collection. It is in my name and the business with my daughter as an employee. I did list this card as fraud in Dec. 2018 , and I would need to find the paperwork and reply on that. Elan did approve fraud charges on another card that she used that was $8000, and released me from that one in April, 2019. Should I just sit on this for now? Elan sent an offer to settle in May of 2019 for 50% and that letter was addressed to the business.
If it were me in this situation, I would let it lay, but keep some cash in reserve for a few years in case it comes back to haunt. Once the statute of limitations to legitimately sue passes in your state, you may not have to be so prepared.
Hello. Please advise when should I start negotiate with bofa. I have 4 cc with bofa but I want to settle the ones with higher debt 1 for 5k and 2 for 7k each total close to 20k. How should I do, Each cc or I tell them I only have such amount for all those 3
Good day , Capital one getting ready to charge off in less than 10 day with balance of Approx 5500$. Unable to pay settle amount offered to me at 4800$ .Will capital one sue . Current state is Texas. What’s statue of limitation? How long does charge off stay on credit? Do they try to settle after charge off or is the debt sold.? Thanks , any info is greatly appreciated.
Capital One sues. They are selling more debt now too. Texas has a 4 year SOL to legitimately sue. Charge off lasts 7 years on credit. I like settling with Capital One just after charge off, by even just a week or so. You can get a deal and terms as of right now. If you need help let me know.
It is situational. Each one of our accounts should be looked at individually. You can schedule a phone consult with me here: calendly.com/debtbytes/15min I can get more details from you and provide better feedback that way.
My debt collector Collectius CMS in Singapore says i will be able to settle with 1.5k monthly payments for my negotiated settlemeny of 7.5k in 5 months. Thru citbank. Should i trust this and proceed to pay 1.5k every month? What if they say after 4 months i still have 5k more of payments? Should i trust debt collectors?
Thanks again for all of the videos, they are very helpful. I have a collection with PRA. Im sure I've passed the SOL (havent paid the original creditor in over 7 years) but (1) is there a way for me to definitively confirm that I am pass the SOL ? (2) I want the collection removed from my report so should I just try to negotiate %30-%50 for them to close the account (and have them send it in writing)? Im trying to make sure that when I do call them to negotiate, I dont say anything for them to extend the SOL
What state are you in? That will help determine if you are passed the SOL to sue. And if it has been more than 7 and one half years since you stopped paying the scheduled minimum to the creditor, than they, and Portfolio Recovery Associates, should no longer be on your credit reports. Does the original creditor appear at all? Do you have bank records you can review?
I live in GA. I actually found my 2015 and 2016 credit report and it shows that my last payment was August of 2013. So I guess I have not passed the SOL since it will only be 4 years that I have not paid the minimum to the original creditor. Should I try to negotiate between 30% and 50%?
If I had the resources to fund a settlement and goals to improve my credit situation, that is what I would do. Be careful dealing with PRA. They are really cagey. Post an update with anything unusual.
There are some serious cautions when trying to negotiate credit cards where the balances are predominately from cash advances and balance transfers. Call in for a one on one consult for the best feedback at 800-939-8357 ext 2.
I think I'm the main card holder on the TBK card and daughter is listed as employee. I called Elan back today and did talk to someone in bankruptcy dept. and was told the account has been charged off and still has the balance and is now in Recovery collection. She said they had a bankruptcy alert so I'm assuming my daughter had the business (that we were previous partners in) file the bankruptcy . The business is no longer active. So I told them it was not myself filing bankruptcy. So , now I'm not sure what to do. Should I just wait and see if they contact me? Please help me figure out what to do. I would appreciate it so much. Thanks.
Mr. Bovee, I am sending out a quick update. My debt is now with Mercantile LLC and I am wondering when I should reach been about 6+ months now maybe 7. The debt is around $50k, how much can I expect to get them down to? I am currently saving up funds but don't have much to pay off debt right now. Can I set up a payment plan?
Yes. The original accounts were with USAA Bank 2 credit accounts each for $25k. Mastercard/Amex backed cards. It first went to AllTran financial a few months ago and has been with Mercantile for about a month or 2
USAA settlements can often be stretched out of 12 months. But I would not set it up that way if you are in any way skeptical about being able to follow through on each and every payment. I would just as soon save up to pay a lump sum than risk paying for 6 months, and then miss month 7 and have those 6 payments go to paying the full balance (losing the deal because you could not make a payment on time).
Ok thanks, so USAA offloaded it back around late November/Dec. With the current debt being with Mercantile, what is your best guess as to what they would accept on $50k for lump sum offer? I am considering a tentative offer of $15-$20k
I have a question. I have an Elan (TBK) business card with a 26K balance that is in my name and my daughters name and the LLC name. She quit paying the minimum a year ago. I have notified the co. that in Feb. 2019 that I was protesting the amount because she is the one who made all of the purchases and balance transfers without my knowledge or consent. Elan has not contacted me for 8 months and no longer sends me statements. So, I called Elan today to find out the status and was transferred to the bankruptcy dept. It was a recording, and I did not leave a message. I no longer speak to my daughter so I'm wondering if she filed bankruptcy. Do you know what this means when a card balance is sent to the bankruptcy dept? Thank you.
@@MichaelBovee I think I'm the main card holder and she is listed as employee. I called Elan back today and did talk to someone in bankruptcy dept. and was told the account has been charged off and still has the balance and is now in Recovery collection. She said they had a bankruptcy alert so I'm assuming my daughter had the business (that we were previous partners in) file the bankruptcy . The business is no longer active. So I told them it was not myself filing bankruptcy. So , now I'm not sure what to do. Should I just wait and see if they contact me? Please help me figure out what to do. I would appreciate it so much. Thanks.
Michael your videos are awesome! My wife is getting sued in Florida by PRA for unsecured debt of $2,000. I am the only person with income and her name is not in the bank account and she has no assets. We had to start paying for our school loans, so I stopped paying some of her credit cards, but not all, so I could afford the payments. I really can't settle for 50%, but I am willing to settle for about 25% to 30%. How probable you think PRA will be willing to settle after they see that they can't collect a judgment? I have called them and offered them 25%, but they refused, I'm afraid to settle and that they will buy more of her debt to try and get more money from us, they already own 2 other accounts for about $200 each. Thanks!
It is unlikely to settle judgment debt for less than 50%, and not just because it is PRA. You can file an answer and defend the suit and likely get to the 50% a few months from now if you want to go that route. Post a reply with her creditors, and if they are with a collector, that name too. I can help you assess the risks that remain. Include an estimated balance on each.
Hi Mike, Thanks for your reply. PRA has 2 more accounts: JC Penny $338 Pier 1 $373 Capio Partners owns a Mercy Hospital for $500 The rest have not been charged off yet, or are not held a collecting agency: Elan Financial $2,456 Target $1,408 GAP $403 Old Navy $265 I would like to wait to see what happens with the Elan and Target accounts, since they have a high balance. Also, I'm worried that they would send the Sherriff to go inside the house looking for assets to auction. Thank you.
Should I try to call my debt collectors or write them a letter? I stopped paying in August 2020 and now I got sent letters from Erc owe 2500 and Monarch 5500 debt collectors I'm scared to contact them and dont know what to say to them, I dont have the money to pay it in full I need an option and am scared I'm going to get sued and I want to repair my credit
@@MichaelBovee waiting for my tax return to do that but yes, I might try a non profit credit counseling company is american consumer credit counseling an ok company? I dont know if I have the confidence to talk to the creditors myself it's from synchrony and target not sure if they will work with me
Non profit credit counseling agencies like American Consumer Credit Counseling,do not typically settle debts for less than what you owe. Not at this time anyway. You can settle this yourself, or get help. We have negotiators that can do this for you. They charge 15% of what they save you, and only after you approve and pay the settlement.
Hello Michael, thank you for your videos. I have a few questions. My bofa Credit Card was charge off a week ago. In my credit report only appears as closed with a balance of 12,500. Bofa told me they transferred it to “trakamerica”. I read in their website that this company is a network of collections companies and law firms. A couple of days ago I received a phone call from a company named “NCB management services inc” but didn’t answered. I don’t have the money to payoff the 12.5k. As of today there’s nothing on my credit report about this collection. Do you think they can settle for 40% or less with a payment plan? When do they report to the credit bureaus, after settlement or before? Will bofa report it as $0 balance? If we settle will they not report it or remove it if was already report it? Is there a risk of been sued with this company? Any additional advice will be appreciated, Thank you Michael.
Done correctly you can get close to the 40% and get payments. There are real risks to being sued by Bank of America. You can avoid that by getting this resolved soon. There may never be a collection agency reporting this. Bank of America has not been selling debt the last several years, so having just BofA on your credit as a charge off is normal. And once settle, they will show it as a zero balance paid collection. Which is fine, as you can still have a happy adult credit life with paid collection on your credit.
Three benefits to taking the deal if you have the resources would be: 1. Super low deal that will be hard to duplicate later. 2. You remove the risk of being sued for this debt (Chase started suing again after a long hiatus). 3. Your credit reports will be updated to show a paid collection, which could help you accomplish later credit and finance goals.
Can health be a reason for a judgment to be postponed? I have been in the current state (Wi) for less than a year. I am from California. In a few months (my lease is up and will be homeless) I'm trying to get back to California to stay with my parents so I can get another job and save to pay creditors and/or lawyer. That will make non payment on certain credit cards and a personal loan close to 9months past due. I have Not been sued yet. My past due is US Bank credit card ($10,000+) US Bank line of credit ($10,000+) and Citi Bank credit card ($8,000+) I make very little money, live in poverty and have physical and mental health issues. I just need to get back to California and don't know what to do. Thank you Michael. I hope you see this comment. I'm really scared.
I rarely see health concerns lead to any meaningful strategic benefit when dealing with collectors at banks and agencies. The issues may lead to better settlements in certain situations, but they do not slow down the collection machine. Have you thought about filing chapter 7 bankruptcy in order to get a fresh start?
Michael Bovee Yes. But I need to get back to California first (in 3 months my lease will be up here in WI) I kind of got stuck here. I have physical and mental health health problems and just need to get back to Ca where I can maybe live with my parents so I can get a job and pay a lawyer. I just don't want to get sued here first then I would be afraid if I went to Ca after that happened that I would get arrested. By the time I can leave my Citi Bank card, US Bank card, and US Bank line of credit will all be about 9months past due. I just want to make it back home (CA) first. Thank you for replying to me. Im just very scared.
Michael Bovee Do you think US Bank and Citi Bank will sue me where I would have to go to court with in the next 3.5months? I'm already 5months behind with them of no payments. I just didn't have the money anymore and was in the hospital for awhile.
+ Michael Bovee. I have a 5 year old judgement from FIA CARD SERVICES of $18,554 that was reniewed in court last week. They have not collected anything yet. I am disabled on SSDi and have no assets, my bank account only has funds from my direct deposited SSDI and can not be levied. My disability has gotten worse and not expected to improve. I have some family members that are willing to help me make a settlement on this judgement. I made this debt before I was disabled and I do want to make a reduced settlement. I realize that I am judgement proof but do want to pay something. Given the circumstances, what do you think my chances of reaching a 40% reduction judgement reduction, and do you have any advice to help reach this goal? By the way, the picture is not me, it's my son's.
Given the circumstances I think you have a good shot at settling with BofA for less than half of today's balance. The timing is not excellent given the renewal. Your hardship does not seem like it will change soon, so you might give it a little before reaching out to the collection attorney handling your file. What is the date the judgment was renewed?
hello Michael, thank you very much for your videos and your help. I'm wondering if you can advise me on a situation. I live in Maryland and have a default judgement against me from 2014 from Discover Business. I wasn't concerned about this since I thought they would just sell the debt and I planned to deal with the third or fourth debt buyer down the line, but that's not how they played it. Discover is holding on to the debt. they gave it to one law firm and then diverted to another when I blew that one off. I've been trying to negotiate with them and they're being very hard-nosed. I keep insisting that the amount of the default judgement, approximately $9,400, was ridiculously high. (My original balance was approximately 5500.) now they're at $14,200 and change. I'm on disability and can't afford much although I do have a friend that's willing to help. should I consider myself lucky to get out of this for 60%? thank you very much for any advice you can give.
Discover has not been selling debt for years. Judgment debts do not settle as favorably as debts that never reached the courts. 60% may be as good as it gets, but I do think you have shot at working them lower, perhaps to 50%.
If you do call an try to negotiate now, there is little to lose, given your long term disability situation. You can try to negotiate now, but I would not be surprised if you needed to reiterate your efforts over numerous calls. The collector may simply want to press a little because you are reaching out right after the renewal. But this is also an organic reaction to the judgment renewal. If you get to a point where you want help let me know.
Just wonderful, I have been researching "getting out of debt plan" for a while now, and I think this has helped. You ever tried - Konabriel Denarper Blueprint - (should be on google have a look ) ? Ive heard some incredible things about it and my mate got great results with it.
Thank you very much for taking the time to respond Michael. very duly noted.
Just found your channel today. Learned a lot already. Capital One is getting ready to charge off the debt in 8 days. I owe $13,898. I could pay $309 to keep it there for another month. I will be getting a tax return in a few weeks that I could use to settle. Would it be better to pay the $309 and settle with Capital One? Or let the charge it off and settle with a collection agency? Thank you!
At the time of this reply, Capital One has a post charge of recovery department accounts go into for a couple months. I would wait a few weeks and negotiate a deal then. If you need help let me know.
Thank you for your reply. I was able to settle with Capital One. I received a "Settlement Agreement Confirmation" letter. Could you please explain what this sentence means? And what it will do to my credit report?.....not that I have any credit left. :) "We'll consider your account paid in full for less than the full balance." Thank you for your help!
@@wixomfam The words mean next to nothing. The account going from an r9 to an r5 now that you settled is what helps.
Thanks you for answering my question. Will my credit report show Capital One was paid in full?
Thank you michael for all the info and respond. I appreciate it
What do you do if you can't pay credit cards and only income is socialcedurity and have no money.will take a couple years to save to settle. They are not in collections yet. Only 90 days behind
Do you have assets, like a home they can lien if they sue and got a judgment?
Less than 3000 in medical debt, 3 separate accounts, same creditor, same debt collector. 2 in Washington state, 1 in Oregon. Providence hospital = creditor
Professional credit services = collector. I need sol info, and one other question.
Will it ever fall off without paying? Or is it only that they can't sue outside sol but they can report forever?
What state are you in (though I believe both have a 6 year SOL)?
Yes, these will fall off your credit after 7 years of not paying.
I have 24k in debt all of which is current but your are saying allow the account to go delinquent before negotiation?
If you are thinking about settling debts for less than the balance owed, it does not typically happen until you are late. And the best outcomes are generally not until you are several months late.
It torches your credit scores as a result.
Michael....you mentioned that folks can leave a comment & ask you about laws in their specific state regarding when states can no longer sue on uncollected debt.
Here's my situation: I live in Alabama. I have around $3600 left on a medical debt that started in 2014. I've only been sending them $10 monthly (just to avoid a lawsuit), while I pay off/settle other debts. I'm not currently in a position to settle with them for even 50% of the $3600; but even if I were, they're unwilling to settle. The debt was placed with an outside collection agency, despite the monthly payments in January of 2016. I've been making phone calls and writing letters to both the hospital & the collection agency in the hopes that they will wipe the slate clean, offer a retroactive type of charity care program, or at least offer a decent settlement - all to no avail.
I've just discovered you on RUclips; but look forward to combing through your videos for help with this! Thanks for any info provided!!
Sending the $10 a month is not a way to prevent the account from going to collection, or to prevent from being sued. That has to be a mutual agreement, and one in writing is preferred.
Those monthly payments will likely mean you renewed the SOL in Alabama each time. But talk with an experienced debt collection defense attorney to make certain. Even if you did not reset the SOL with the payments, there is a difference between open accounts, like credit cards, and written contracts in AL. The SOL could run for 6 years.
I do not see many medical bills getting cancelled or retroactively gain hardship reduction or write off. That is even more the case if insurance covered any of the bills. See this video for more about hospital and medical debts: ruclips.net/video/DKEVRqmpp7s/видео.html
You're right. That small monthly payment did not save my account from going to collections, which is where it currently sits. When the collection agency contacted me, I told them that I had been paying the hospital $10 a month and I would continue to pay that amount. So, now I receive "bills" from them reminding me of "our agreement".
Before the debt left the hospital, I was declined charity care - even though our income is below the poverty level. I was disputing the debt with the hospital (and I did not have the cash on hand), so I refused to pay the settlement they offered at the time.
Given my naivete, I assumed that I could appeal to their common sense and get them to remove the portion of the debt that I disputed; but nothing has budged. Like I mentioned, the debt is in collections now. If you were in my shoes, would you stop paying the monthly amount and wait until they serve papers to sue - hoping for the SOL to run its course? And in the meantime, put back some money to settle in case I'm sued? I've seen your video on timing your settlements...that's why I wanted to get your opinion on what move I should make from here forward.
It would just take to long to save up a reasonable amount to settle with at the rate you are able to put money aside right now.
Can you save up more and quicker?
Can you count on a tax refund or some other lump sum of money?
How much would you recommend that I save up? The full amount of the debt? And when I save this amount, then what steps would you recommend I take?
I have no tax refund or other lump sum of money to look forward to.
I would suggest saving or gathering up half of the balance owed. When you get there, post an update and I can help you from there.
Was just told by a prospective bankruptcy attorney that I can't file bankruptcy because I would lose everything from another lawsuit that is being filed on my behalf, and I also anticipate being sued for not paying rent. They said that it would have to be a lump sum payment debt settlement. Without signing the retainer, what are they really saying? That I'll pretty much still lose everything even though they told me I would lose everything if I filed for bankruptcy?
What do all of your other debts besides unpaid rent add up to?
How late are you on payments with credit cards and loans?
Do you have an idea of what an award in your favor may be from the lawsuit you could benefit from?
Do you have an idea of when the outcome of that lawsuit will be?
@@MichaelBovee 1) I would say about $42-45,000 2) Almost 2 months on one, but I have spoken with them already so they know what's going on 3) Possibly $20,000 possibly more no idea. 4) No idea, but I will try to find out tomorrow.
Depending on who the creditors are, you could be looking at settlements around what you estimated the lawsuit ruling in your favor would be. If that lawsuit took a year or more to play out, you could be looking at being sued by some of the creditors you are late with, or the back rent.
I suggest scheduling a phone call with me so I can learn more about the creditors involved, and your prospects for settling at some more dynamic savings: consumerrecoverynetwork.com/free-debt-consultation/
What is the statue of limitations for a cellphone account? Original default date in July of 2010.
The state is FL.
Talk to an experienced debt collection consumer law attorney in Florida. I believe it is 5 years though.
Michael Bovee that would be from the date of default right? This is a re-aged zombie debt, incorrectly reported to the bureaus in 2016.
It is up to 7 and one half years from when you stopped paying for credit reporting, and the 5 year reference was the SOL to use the courts to collect. If payment stopped in mid 2010, than it is has been 7.5 years.
Is there a debt collector reporting, or is it the company itself still?
Michael Bovee its a collection company, my first priority is SOL, but I seem to be golden with that. You said in another video that collectors rarely sue for debts out of the SOL right? If these guys do, I will counter sue, I have got an affirmative defense. My second priority is my credit report, they have Re-aged it, it’s has survived multiple disputes.
Hi, I just received a letter in the mail from a collection agency called Midland Credit Management and the letter is stamped with "Final Notice." Midland Credit Management bought my Best Buy credit card account from Citi Bank and the letter states they are the current owner of the account. The letter starts off my saying they are "demanding payment in full by 10/30/2020" and saying that "this is a demand for full payment of 2,679.08 and that my failure to reply will result in an "attorney review......" Then, it goes on to say that if I don't reply they plan on sending my account to an attorney in the state of MO. Lastly it says "Ps: Your prompt attention is necessary to avoid the possibility of attorney review. Pay online..." It seems like they are threatening me with words like an "attorney review", tte "possibility of a attorney review, if you don't reply ", and "we plan on sending your account, we intend to file a lawsuit against you, but before a lawsuit can be filed an attorney must review your account." I do not know how seriously to take these people. "My question is do you have any experience with this company as to whether they usually sue people and secondly in your experience what do they usually settle for and what should I start off with in terms of a negotiation amount. What should I do I'm freaking out.
That letter from Midland Credit indeed means your account is on their legal track for sending to an attorney, who is then highly likely to sue if you can arrange something to prevent it.
If your goal is to prevent it, doing something now is better than doing it with an attorney later, as the settlements are often higher.
People have a hard time getting half off from Midland, where professionals regularly do. I estimate you could get a year to pay half off too (though do a lump sum whenever you can).
Check out my page on settling with Midland Funding. If you want help schedule a call with me at the bottom of the page: consumerrecoverynetwork.com/midland-funding-mcm-encore-receivables/
Michael, when seeking a lump sum settlement, how far out can you typically schedule that. Waiting on a divestment of funds that I would use to settle my cc debts and they might not come through for 1-3 months...if I am in the sweet spot for getting a good settlement, how long will they wait for the lump sum payment? Thanks!
You tend to need to make the payment by the end of the month you are having your dialogue with them. This goes for the vast majority of negotiations no matter where you are in the life cycle of a debt: ruclips.net/video/HnSsapKVeTo/видео.html
One way to work around your preferred timing and funding alignment issue would be to not do lump sum, but a payment plan on the settlements.
We often get at least 3 months installments.
This can include smaller payments the first 2 months, and a balloon payment at the end.
This helps to prevent missing out on great opportunities, while eliminating aggressive collection risks.
I have some more specific questions I was hoping you could answer. My husband and I both have quite a bit of debt between the 2 of us. He owes USAA 7,208 and navy fed 12,946. I have 2 separate accounts with chase. I owe 3965 on one of them and 2901 on the other. I owe usaa 6799 and 3000 to citi bank and 2400 to us bank. We are going to be getting a pretty hefty amount on our tax return this year and I’m trying to figure out the best way to go about settling them. Everything has been charged off except for navy fed and have received settlement offers around 50-60%. Our tax return is around 8k and we will be able to save up more over these next few months. I’m trying to fix our credit as much as possible as soon as possible. Thank you!
I would start off with US bank and Citibank, as they sell to debt buyers who can be aggressive.
Chase, and your credit unions, do not currently sell debts.
USAA will often allow 40% over 12 months, even through the debt collection agencies they send your accounts to, so I would take that in order to knock down the other ones.
If you have not read through my 10 part article series about settling debt yourself, check it out starting here: consumerrecoverynetwork.com/credit-card-debt-settlement-program/
I thought debt buyers WERE debt collector agencies, at 3:56 you seem to make a distinction. Could you elaborate a bit?
Some debt buyers collect on accounts they purchase using their own resources. Portfolio Recovery Associates and Midland Funding (the two largest) are a good example of this.
Many debt buyers purchase unpaid accounts and then hire collection agencies to collect for them. Cavalry, Resurgent, Unifund, and many others are a good example of this.
Debt collection agencies can work for creditors and debt buyers, but they do not buy or own the legal rights to the accounts they collect on.
I should point out that some believe any debt collector they hear from bought the debt, including attorneys.
This is not true.
Most debts are not sold.
Oh gotcha! Because I was under the impression that a company such as frost- arnett is a debt buyer but from further research it seems to be a debt collector
Hey, Michael! Great video, as always. Quick question; is it unheard of for a creditor to accept a settlement that is structured around a payment plan as opposed to a lump sum? And if so, I have an interesting alternative idea I want to run by you really quickly. Thanks!
Most creditors will accept a settlement with payment terms of at least 90 days if the account has not charged off, and more after charge off.
@@MichaelBovee Ok I am interested in a payment term settlement. I have another idea I think is worth offering. How do I get in contact with you best?
You can reach me at 800-939-8357 ext 2.
I'm from Texas. Can a credit card from 30 years ago sue me and put a lein on my property. I'm sure it was paid off. But I have no proof from 30 years ago! Plz answer.
I responded to this on the other video too. Read about how to handle debt collection scams here: consumerrecoverynetwork.com/question/debt-collection-scams-fakes/
Question about SOL... What happens if you move states? The SOL where I am is 6 years, but what would happen if I moved to CA where it's 4 years? At what point would the SOL for CA apply to my debt?
Has a lawsuit already been filed? Talk to an experienced debt collection defense attorney in CA about your concern.
I typically see debt collectors sue people in their state of residency. And that would likely mean the California SOL applies if you move their. But their are tolling concerns, and perhaps other issues that could come up. Talking to an attorney would clear things up for you.
I am finding mixed info on Illinois statute of limitations. I have found one site saying 5 yr and another said 10 from the last payment. Do you have any clarification? Thank you.
The SOL can vary in many states depending on the type of debt at issue. The SOL on a credit card in Illinois is 5 years, while other debt types, like on a written contract, could be 10 years.
I was sued by PRA 18 months ago and a judgement was issue, i paid according to the judgement to rausch sturem, however my credit report is still showing that I owe PRA the original amount.
Are you making payments on the judgment, or did you pay a lump sum to resolve the debt? If you are making payments, PRA will not delete the account until it is all taken care of.
@@MichaelBovee The aggreement was for 12 months worth of payments. I paid more than what was lined out in the agreement and had it paid off early 4 months ago. I have written both PRA and their law firm they used to sue me and made attempts to call, and I get no response.
@@tiathompson6674 I would both call and write to PRA with an outline of the situation and ask what gives?!
Their policy is to delete accounts from credit reports once the account is resolved. This is a new policy as of more than a year ago, but I have not heard of any change to it, so hold them to it.
I would give them another chance to respond to my phone calls and letter (not the law firm as they have nothing at all to do with credit reporting), and then I would file complaints with the CFPB.
Again, you are not asking for any favors here, just that they follow their own policy for credit reporting.
@@MichaelBovee Thanks...... I will absolutely do this.
Can you give me an order of importance of starting to pay these debts off and settlements with the creditors?Divorced 3 years ago and quit paying on cc due to trying to secure my job, save my house, and pay $15K to IRS. All that is done and now to tackle the other demons. 1. BOA one card is $12.500 and the other is $7,100 I am currently trying to be served papers but haven't been home. Was told to contact court to notify when I can be served. Was with FMA Alliance in March'16 and not sure if they filed or an attorney did.
I need these two to be taken care of very soon. Haven't paid since 2014. Never spoken to anyone about this debt either. 2. GE Capitol Retail Bank (Lowes) $11,771 haven't paid since 2014. Was supposed to be ex in divorce agreement, but card is in my name. He's in Jail for 2 years for DV and has nothing to get. Have never spoken to them about this account. Was with midland who sent $3500 settlement by mail offer back in January but I never responded since I had nothing to offer at that time. Am I still liable for this since it's in my name even though he agreed to take it as his part of divorce agreement?3. Synchrony Bank $1,500 which is now with Monarch Recovery Management and has just been placed there with a letter today saying I had 30 days to dispute this debt. I have paid on it in the last 12 months so it's the most current. I am self employed so I'm not sure they can garnish any wages. I have a home that the deed is still in both our names (3 years after divorce) but the loan is in his name only and I can't switch it over since I have a 550 credit score- and I have enough equity to pay all this off, but can't due to the credit report score. I do have $4000 to use right now to pay on something. I can get more in the next 6 months if I can buy some time. I would love to have all this paid by end of year and avoid court if possible. I have no interest in filing BK since I have come so far in getting out of the hole I was left in with 2 kids single mom. I have no family to help. So it's just in my time that I can fix this. I just need some direction in where to start and what to expect from these collectors. Should I contact BOA and try to get a settlement before I am served- since I shouldn't know about it yet. Or should I go to courthouse to get papers and file a denial then contact BOA? I owe them about $20,000 with all the fess added in- I only should owe about $14000 before the fees. I wont have 50% of that for a while, maybe 3 months or more. I could probably come up with $6000 in the next 30 days though. Thanks for all your help!Jackie - Kentucky
Settling with Bank of America is the priority, and for a lump sum. But perhaps you can resolve a few things at once.
The timing to settle with Midland before they sue is good. Assume you could settle with Midland for less than half and with monthly payment terms. That could prevent the next fire from starting.
Is BofA suing on both accounts or just one? Assume you are settling for half the amount they are suing for. If you can file an answer and delay the day to fund a settlement a couple of months, I like being able to put out all the fires, wither real or potential.
The Synchrony account can be knocked out for a reasonable settlement. But it is not the priority the others are.
You are at risk and responsible for paying the debts your ex could not. The divorce decree does not shield you from that.
I would wait to be served. If it takes them another month or two, that is more time to save up.
Call in for a consult if you would like to go into more detail, or want help. You can reach me at the number in the email exchange we had.
I don't know if it is both BOA or not but they generally send me a separate letter for both accounts at the same time so I am going to assume it is which would be around $20,000. I haven't been served yet to find out. Should I call the last person that sent me a letter and ask about a settlement- it was FMA Alliance. I logged onto Midland website to see my offers and it says "Your account is being serviced by an affiliate of Encore Fenton & McGarvey Law Firm P.S.C. . Please contact 5025606700 for more details." So I am assuming that it is now in a lawyers office and not midland anymore. Should I call them to see if they will honor the $3500 settlement which is 30% BTW and make that in 3 payments? (although this will take away from my BOA stash I have to offer them)The Synchrony bank I can knock out while all the above is going on so I am not too concerned with that right now. I do have several other smaller $500 or less debts that should have been my ex's too that have come back on me. They are on the bottom of the totem pole but don't want to be sued over them either. I didn't mention that I have about $60K in student loans that are behind as well, so not sure if that helps me in the long run of settling with BOA for less or not. I have kept in contact with them and they know my situation and are working with me so no worry about suit there. If I could just get a bank to allow me to use some of my equity in my home I could make all this go away immediately, any thoughts on this? And I am not one to repeat this mistake and get back into debt again, since this has all stemmed from a DV divorce. The current home loan in my ex's name is with Wells Fargo. They won't speak to me about the loan since its not in my name. I make the payment and it's applied to the loan each month. My credit score is around 550 so I haven't even asked them about it yet. It will be several months before I can come up with $10,000 which would be 50% of the balance of BOA. If the previous midland account offers me a settlement of $3000-3500 should I just go ahead and take that from my BOA stash to put that fire out now? Or should I call BOA and get a feel for what they expect before I contact the old midland account?
What information do I have to give the collectors or attorneys when I talk to them? Income or value of home?
Let's connect on the phone Jackie. It will be easier for me to ask more questions and offer more detailed feedback that way.
You are usually limited to dealing with the law firm on the midland account now. It could mean 30 percent is off the table, but maybe not.
After I get all the details I need I may surprise you by suggesting that being sued is better given all that is going on. You can manage things in a formal court setting, using timing the court requires, or is too busy to schedule quickly, to your advantage.
You really have no shot at the equity until all this is resolved, but you have a path to that without touching the equity. I can map that out for you when we speak.
Sometimes you need to get into those details, other time you don't. I can cover that with you when we speak.
Michael, I want to resolve this debt because I am worried that the card co. will start asking me to pay it anywhere from 1 to 10 years from now and I am planning on retiring in 2021 and don' t want this to rear it's ugly head. I also wonder if I keep calling and asking about it if they will start coming after me for this debt. I only called the one time last week and found that it was in their bankruptcy dept and Charged Off to collection. It is in my name and the business with my daughter as an employee. I did list this card as fraud in Dec. 2018 , and I would need to find the paperwork and reply on that. Elan did approve fraud charges on another card that she used that was $8000, and released me from that one in April, 2019. Should I just sit on this for now? Elan sent an offer to settle in May of 2019 for 50% and that letter was addressed to the business.
If it were me in this situation, I would let it lay, but keep some cash in reserve for a few years in case it comes back to haunt. Once the statute of limitations to legitimately sue passes in your state, you may not have to be so prepared.
Hello. Please advise when should I start negotiate with bofa. I have 4 cc with bofa but I want to settle the ones with higher debt 1 for 5k and 2 for 7k each total close to 20k. How should I do, Each cc or I tell them I only have such amount for all those 3
How late are you with payments on each account?
Good day ,
Capital one getting ready to charge off in less than 10 day with balance of Approx 5500$. Unable to pay settle amount offered to me at 4800$ .Will capital one sue . Current state is Texas. What’s statue of limitation? How long does charge off stay on credit? Do they try to settle after charge off or is the debt sold.? Thanks , any info is greatly appreciated.
Capital One sues. They are selling more debt now too.
Texas has a 4 year SOL to legitimately sue.
Charge off lasts 7 years on credit.
I like settling with Capital One just after charge off, by even just a week or so. You can get a deal and terms as of right now. If you need help let me know.
@@MichaelBovee same situation. Do you knowWhat will capital one's willing to settle down the most?
It is situational. Each one of our accounts should be looked at individually. You can schedule a phone consult with me here: calendly.com/debtbytes/15min
I can get more details from you and provide better feedback that way.
I've read the Statute of limitations for NY is 6 years, can you confirm this?
My debt collector Collectius CMS in Singapore says i will be able to settle with 1.5k monthly payments for my negotiated settlemeny of 7.5k in 5 months. Thru citbank. Should i trust this and proceed to pay 1.5k every month? What if they say after 4 months i still have 5k more of payments? Should i trust debt collectors?
You should always get settlements in writing before paying.
Thanks again for all of the videos, they are very helpful. I have a collection with PRA. Im sure I've passed the SOL (havent paid the original creditor in over 7 years) but (1) is there a way for me to definitively confirm that I am pass the SOL ? (2) I want the collection removed from my report so should I just try to negotiate %30-%50 for them to close the account (and have them send it in writing)? Im trying to make sure that when I do call them to negotiate, I dont say anything for them to extend the SOL
What state are you in? That will help determine if you are passed the SOL to sue. And if it has been more than 7 and one half years since you stopped paying the scheduled minimum to the creditor, than they, and Portfolio Recovery Associates, should no longer be on your credit reports.
Does the original creditor appear at all? Do you have bank records you can review?
I live in GA. I actually found my 2015 and 2016 credit report and it shows that my last payment was August of 2013. So I guess I have not passed the SOL since it will only be 4 years that I have not paid the minimum to the original creditor. Should I try to negotiate between 30% and 50%?
If I had the resources to fund a settlement and goals to improve my credit situation, that is what I would do. Be careful dealing with PRA. They are really cagey. Post an update with anything unusual.
Michael Bovee ok I sure will. thanks!
Are there any debt settlement tips specific for if every transaction on a credit card was due to a gambling addiction?
There are some serious cautions when trying to negotiate credit cards where the balances are predominately from cash advances and balance transfers.
Call in for a one on one consult for the best feedback at 800-939-8357 ext 2.
This addiction has to do with spending/gambling on sports trading cards.
I think I'm the main card holder on the TBK card and daughter is listed as employee. I called Elan back today and did talk to someone in bankruptcy dept. and was told the account has been charged off and still has the balance and is now in Recovery collection. She said they had a bankruptcy alert so I'm assuming my daughter had the business (that we were previous partners in) file the bankruptcy . The business is no longer active. So I told them it was not myself filing bankruptcy. So , now I'm not sure what to do. Should I just wait and see if they contact me? Please help me figure out what to do. I would appreciate it so much. Thanks.
Okay, and what is your primary goal? What is motivating you to resolve this?
Mr. Bovee,
I am sending out a quick update. My debt is now with Mercantile LLC and I am wondering when I should reach been about 6+ months now maybe 7. The debt is around $50k, how much can I expect to get them down to? I am currently saving up funds but don't have much to pay off debt right now. Can I set up a payment plan?
Are you talking about Mercantile Adjustment Bureau? And if so, who was the original creditor?
Yes. The original accounts were with USAA Bank 2 credit accounts each for $25k. Mastercard/Amex backed cards. It first went to AllTran financial a few months ago and has been with Mercantile for about a month or 2
USAA settlements can often be stretched out of 12 months. But I would not set it up that way if you are in any way skeptical about being able to follow through on each and every payment. I would just as soon save up to pay a lump sum than risk paying for 6 months, and then miss month 7 and have those 6 payments go to paying the full balance (losing the deal because you could not make a payment on time).
Ok thanks, so USAA offloaded it back around late November/Dec. With the current debt being with Mercantile, what is your best guess as to what they would accept on $50k for lump sum offer? I am considering a tentative offer of $15-$20k
40%.
I have a question. I have an Elan (TBK) business card with a 26K balance that is in my name and my daughters name and the LLC name. She quit paying the minimum a year ago. I have notified the co. that in Feb. 2019 that I was protesting the amount because she is the one who made all of the purchases and balance transfers without my knowledge or consent. Elan has not contacted me for 8 months and no longer sends me statements. So, I called Elan today to find out the status and was transferred to the bankruptcy dept. It was a recording, and I did not leave a message. I no longer speak to my daughter so I'm wondering if she filed bankruptcy. Do you know what this means when a card balance is sent to the bankruptcy dept? Thank you.
I too would assume she filed bankruptcy.
If you were a cosigner on the account, you could have some exposure.
@@MichaelBovee I think I'm the main card holder and she is listed as employee. I called Elan back today and did talk to someone in bankruptcy dept. and was told the account has been charged off and still has the balance and is now in Recovery collection. She said they had a bankruptcy alert so I'm assuming my daughter had the business (that we were previous partners in) file the bankruptcy . The business is no longer active. So I told them it was not myself filing bankruptcy. So , now I'm not sure what to do. Should I just wait and see if they contact me? Please help me figure out what to do. I would appreciate it so much. Thanks.
Michael your videos are awesome! My wife is getting sued in Florida by PRA for unsecured debt of $2,000. I am the only person with income and her name is not in the bank account and she has no assets. We had to start paying for our school loans, so I stopped paying some of her credit cards, but not all, so I could afford the payments. I really can't settle for 50%, but I am willing to settle for about 25% to 30%. How probable you think PRA will be willing to settle after they see that they can't collect a judgment? I have called them and offered them 25%, but they refused, I'm afraid to settle and that they will buy more of her debt to try and get more money from us, they already own 2 other accounts for about $200 each. Thanks!
It is unlikely to settle judgment debt for less than 50%, and not just because it is PRA. You can file an answer and defend the suit and likely get to the 50% a few months from now if you want to go that route.
Post a reply with her creditors, and if they are with a collector, that name too. I can help you assess the risks that remain. Include an estimated balance on each.
Hi Mike,
Thanks for your reply.
PRA has 2 more accounts:
JC Penny $338
Pier 1 $373
Capio Partners owns a Mercy Hospital for $500
The rest have not been charged off yet, or are not held a collecting agency:
Elan Financial $2,456
Target $1,408
GAP $403
Old Navy $265
I would like to wait to see what happens with the Elan and Target accounts, since they have a high balance. Also, I'm worried that they would send the Sherriff to go inside the house looking for assets to auction.
Thank you.
Should I try to call my debt collectors or write them a letter? I stopped paying in August 2020 and now I got sent letters from Erc owe 2500 and Monarch 5500 debt collectors I'm scared to contact them and dont know what to say to them, I dont have the money to pay it in full I need an option and am scared I'm going to get sued and I want to repair my credit
Can you pull together half of what is owed?
@@MichaelBovee waiting for my tax return to do that but yes, I might try a non profit credit counseling company is american consumer credit counseling an ok company? I dont know if I have the confidence to talk to the creditors myself it's from synchrony and target not sure if they will work with me
Non profit credit counseling agencies like American Consumer Credit Counseling,do not typically settle debts for less than what you owe.
Not at this time anyway.
You can settle this yourself, or get help. We have negotiators that can do this for you. They charge 15% of what they save you, and only after you approve and pay the settlement.
Hello Michael, thank you for your videos. I have a few questions. My bofa Credit Card was charge off a week ago. In my credit report only appears as closed with a balance of 12,500. Bofa told me they transferred it to “trakamerica”. I read in their website that this company is a network of collections companies and law firms. A couple of days ago I received a phone call from a company named “NCB management services inc” but didn’t answered. I don’t have the money to payoff the 12.5k. As of today there’s nothing on my credit report about this collection.
Do you think they can settle for 40% or less with a payment plan? When do they report to the credit bureaus, after settlement or before? Will bofa report it as $0 balance? If we settle will they not report it or remove it if was already report it? Is there a risk of been sued with this company? Any additional advice will be appreciated, Thank you Michael.
Done correctly you can get close to the 40% and get payments.
There are real risks to being sued by Bank of America. You can avoid that by getting this resolved soon.
There may never be a collection agency reporting this. Bank of America has not been selling debt the last several years, so having just BofA on your credit as a charge off is normal. And once settle, they will show it as a zero balance paid collection. Which is fine, as you can still have a happy adult credit life with paid collection on your credit.
Thank Michael for you advice, I will contact them to get this settled as soon as possible.
What about credit unions? How fast do they sue?
It varies by bank. Some send unpaid accounts to attorneys in a matter of several months, and some (the larger ones) may never.
Michael Bovee Thank You
chase sent a letter settling for 10% of something they discharged June 2019 should I pay it, I live in Texas
oh yeah Texas
Three benefits to taking the deal if you have the resources would be:
1. Super low deal that will be hard to duplicate later.
2. You remove the risk of being sued for this debt (Chase started suing again after a long hiatus).
3. Your credit reports will be updated to show a paid collection, which could help you accomplish later credit and finance goals.
@@MichaelBovee I expressed mailed it today LOL
Can health be a reason for a judgment to be postponed? I have been in the current state (Wi) for less than a year. I am from California. In a few months (my lease is up and will be homeless) I'm trying to get back to California to stay with my parents so I can get another job and save to pay creditors and/or lawyer. That will make non payment on certain credit cards and a personal loan close to 9months past due. I have Not been sued yet. My past due is US Bank credit card ($10,000+) US Bank line of credit ($10,000+) and Citi Bank credit card ($8,000+) I make very little money, live in poverty and have physical and mental health issues. I just need to get back to California and don't know what to do. Thank you Michael. I hope you see this comment. I'm really scared.
I rarely see health concerns lead to any meaningful strategic benefit when dealing with collectors at banks and agencies. The issues may lead to better settlements in certain situations, but they do not slow down the collection machine.
Have you thought about filing chapter 7 bankruptcy in order to get a fresh start?
Michael Bovee Yes. But I need to get back to California first (in 3 months my lease will be up here in WI) I kind of got stuck here. I have physical and mental health health problems and just need to get back to Ca where I can maybe live with my parents so I can get a job and pay a lawyer. I just don't want to get sued here first then I would be afraid if I went to Ca after that happened that I would get arrested. By the time I can leave my Citi Bank card, US Bank card, and US Bank line of credit will all be about 9months past due. I just want to make it back home (CA) first. Thank you for replying to me. Im just very scared.
Michael Bovee Do you think US Bank and Citi Bank will sue me where I would have to go to court with in the next 3.5months? I'm already 5months behind with them of no payments. I just didn't have the money anymore and was in the hospital for awhile.
I think they could sell the debt to debt buyers that may sue, but not in the next few months.
Michael Bovee Thank you so much for your response. I really appreciate it! Thank you Michael
+ Michael Bovee. I have a 5 year old judgement from FIA CARD SERVICES of $18,554 that was reniewed in court last week. They have not collected anything yet. I am disabled on SSDi and have no assets, my bank account only has funds from my direct deposited SSDI and can not be levied. My disability has gotten worse and not expected to improve. I have some family members that are willing to help me make a settlement on this judgement. I made this debt before I was disabled and I do want to make a reduced settlement. I realize that I am judgement proof but do want to pay something. Given the circumstances, what do you think my chances of reaching a 40% reduction judgement reduction, and do you have any advice to help reach this goal? By the way, the picture is not me, it's my son's.
Given the circumstances I think you have a good shot at settling with BofA for less than half of today's balance. The timing is not excellent given the renewal. Your hardship does not seem like it will change soon, so you might give it a little before reaching out to the collection attorney handling your file.
What is the date the judgment was renewed?
hello Michael, thank you very much for your videos and your help. I'm wondering if you can advise me on a situation. I live in Maryland and have a default judgement against me from 2014 from Discover Business. I wasn't concerned about this since I thought they would just sell the debt and I planned to deal with the third or fourth debt buyer down the line, but that's not how they played it. Discover is holding on to the debt. they gave it to one law firm and then diverted to another when I blew that one off. I've been trying to negotiate with them and they're being very hard-nosed. I keep insisting that the amount of the default judgement, approximately $9,400, was ridiculously high. (My original balance was approximately 5500.) now they're at $14,200 and change. I'm on disability and can't afford much although I do have a friend that's willing to help. should I consider myself lucky to get out of this for 60%? thank you very much for any advice you can give.
Discover has not been selling debt for years.
Judgment debts do not settle as favorably as debts that never reached the courts. 60% may be as good as it gets, but I do think you have shot at working them lower, perhaps to 50%.
What is the statue of limitations in Texas for credit card debt that was sold to CACH LLC?
4 years from when you stopped paying the original creditor.
+ Michael Bovee. Judgement was renewed July 12, 2016
If you do call an try to negotiate now, there is little to lose, given your long term disability situation. You can try to negotiate now, but I would not be surprised if you needed to reiterate your efforts over numerous calls. The collector may simply want to press a little because you are reaching out right after the renewal. But this is also an organic reaction to the judgment renewal.
If you get to a point where you want help let me know.
What is limit for Wisconsin?
If you are asking about the SOL to legitimately sue someone in Wisconsin, it is typically 6 years.
Is Florida SOL 5 years or 4?
Both. There is a 5 year SOL to sue on written contracts in Florida, and a 4 year SOL on an agreement not in writing.
+Michael Bovee. Thank you Michael, I will wait 6 months then call them.
Just wonderful, I have been researching "getting out of debt plan" for a while now, and I think this has helped. You ever tried - Konabriel Denarper Blueprint - (should be on google have a look ) ? Ive heard some incredible things about it and my mate got great results with it.
Sol in West Virginia Michael?
You are looking at 5 years for the statute of limitations on a credit card debt in West Virginia.
How can I contact u
You can reach me at 800-939-8357 ext 2.
Your don’t work boss