Feb 15
I am trying to settle my debt (from credit cards) with two creditors. I am a complete ignorant of how these works.
Please help answering the following :
Please help answering the following :
1) Is settling better than bancruptcy ?
2) Are there different types of debt settlements ?
3) Does it make any difference if I settle with the Bank or with a collector ?
4) how do you compare the effect of settlement vs banckruptcy on credit history ?
5) Is auto re-possesion equivalent to bankruptcy ?
Thank you…
Settling is better than bankruptcy, because it shows that you tried. In the settlement, ask them to report a good pay to the credit agencies.
It makes no difference who you settle with from a money standpoint, but if you settle with the bank, you avoid having a collection agency on your credit report.
There are different types of debt settlements. You can set up plans to repay, you can have them wipe some of the debt away and pay the rest.
On your credit history, bankruptcy looks really bad and stays on your credit history longer than a settlement.
Auto repossession is not the same as bankruptcy, but also looks bad.
Good luck. Call the companies, they want their money and would prefer not to have to send you to collections.
Here are your answers.
1) Settling is better because settling stays for 7 years from date of first delinquincy while bankruptcy stays for 10.
2) If the statute of limitations in your state (in texas it is 4 years) have passed you can literraly negotiate (based on your skills) to have the payment 50%, 25% or even 10% of the original amount. Even before the SOL you can negotiate but I advise against it as the collectors will threaten to sue you and you dont have that much leverage.
3) If it has gone to collections, I suggest collections since the bank has already marked it off as a bad debt. Very important is to get a deletion letter.
Check your credit report to ensure there are no multiple entires for the same account. If the bank has sold the debt to collection, you can have it removed marked as duplicate. Then talk to collections, negotiate and settle and get a deletion letter. Doesn’t matter if you pay in full, 50%, 25%. GET THAT DELETION LETTER!
4) Settlement will have lesser and lesser impact as time goes on and will be removed 7 years after date of first delinquincy reported by the bank on the credit report. NOTHING resets that period. So if your credit shows delinquint in 2003, in the year 2010 it will be removed. When you file bankruptcy in 2008, the bankruptcy will remain on your record till 2018! Now you tell me what is better?
5) No, it is default on a payment. Bankruptcy is chapter 7 or 11 and involves a lawyer and a judge who grants you bankruptcy!
Definitely settle rather than declaring bankruptcy. Try using:
I used their service a couple months back and they consolidated all my debt and lowered my total debt about 25%.
Hi,
I used “Credit Solution” to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate. Icame across this company on NBC News Special Edition.Check it out here: