Hi, I am preparing to write and offer a debt settlement for my credit cards. I have really done the research, but can not find any help with the actual writing of the letter. Does anyone have any sample letters, or legal letters they could help me with? thanks!
Here's one I stole from here. All notes at the bottom are from the original poster - sorry, I don't recall whom to give credit to: Creditor Address City, State, Zip Re: Account Number Dear Sirs: This letter is an offer to amicably settle the above account. It is not to be construed as an acknowledgment of my liability for this debt in any form. I will pay your company the amount of $____ as full settlement of this account. If you accept this agreement, I will send you a money order or certified cashiers check for the settlement amount of $______ in exchange for a full deletion of all references regarding this account from my credit profile and full satisfaction of the debt. This agreement is binding and will be void should you not hold up to your end of the agreement. Furthermore the debt will be deleted from my credit profile at all three credit bureaus or the bureaus your company regularly reports to in the course of doing business. If you agree to the above, please acknowledge with your signature and return a copy to me. Upon receipt of this signed acknowledgment, I will promptly send you a money order or cashiers check in the amount stated above. Notice: This agreement is restricted. This is not a renewed promise to pay but rather a restricted settlement offer only. By not signing below, you agree that the debt has not been renewed nor has any concrete written agreements been exchanged. Creditorâ??s Authorized Signature: _____________________________ Date:____________ Name Title : Sincerely, Do not sign or date letter (This is necessary to avoid renewing the debt, should the creditor refuse to agree.) Be sure to not use a personal check if they agree to pay. ------------------------------------------------------------
Is this letter for CA use only? If you are settling with an OC wouldn't you want to have your report show paid as agreed and not have it deleted? I have never sent a settlement letter but am about to and mine would be to an OC.
Yea, with an OC, paid as agreed never late is good too, closed at request of consumer. Remember you are probably negotiating. You can always ask for "less", but can't ask for more. I think its personal choice on what you ask for in your settlement letter.
Just wondering, but what type of research did you do? I am interested in settling alot of CC bills. I have contacted one, and asked the settlement, and they gave me a figure, should I settle for that it, or send my own settlement request? How can you 'write off' a CC bill?
Hi, Thanks for responding. Here is another site that I have used for reference: http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&oe=UTF-8&group=alt.bankruptcy I basically have been getting my information over the Internet, and from our attorney, who suggested that we try this in lieu of chapter 13. we have to much equity in our home, and own our car, so we are going to try this first. It seems to good to be true, but worth a try! I am going to send out certified letters, unsigned, asking for about 40-47% of a settlement on the balance-Letting them know that I would send a certified check to them the last week of March, if agreed upon. I know companies do this for a fee, but thought it would be worth it to go alone to start. OUr attorney even offered to write them...I figured if we get in a bind with one of them, we will bring him in. Anxious to hear your thoughts, and if you have tried this. I figured certified letters might help them to know how serious we are....and was told that it was best to do that way. Just curious, what was the offer the company gave you?
The company offered me 80% which is propably all principal. I think I will try your idea of a certified letter. Thanks!
Here is information about the 1099 tax implication. Apparantly, they can send you a 1099 to be reported as income on the funds that were "settled" Someone said that you could ask that they not report it, but that might reduce your chances of getting a good offer. Again, Just passing this information along....do not know if it holds any validation or not....I am not an attorney, but might want to be one one day I printed it, and put it in my files for later. ------------------------------------- While creditors often do sent out 1099's under such circumstances, if you are insolvent, you do not owe taxes on the imputed income on the compromise. Speak with your tax adviser for more details.
what is your balance? We have one that is 22K, and we are going to offer 10,500. We took out an equity line, and hopefully, are going to wipe them all out!!!
