What is the best way to approach a debt settlement program. There are agency offering this service charging 30% of the total savings. Attorney's charging 12% of the total debt. Credit Counseling Services charging 15% of the save amount. I am interested in finding out more information regarding debt settlement. What is the best group to use and why? I have heard of paying anywhere from .10 to .80 on the $1.00 owed. Realistically what can I expect? What about 1099-C forms. Any information is appreciated? Thanks.
Give us a few more details on the situation that you are trying to resolve. However, I agree that doing it yourself is the best way to go.
Do it yourself if you do it. I settled on 3 CC last year: 25%, 30%, and 55%. Great deals, but if the amount cancelled exceeds 600.00, the companies will most likely notify the IRS. You will receive a 1099C at the end of the tax year. The amount cancelled will be counted as income for you when you file. Make sure you get everything in writing before you send any money to CCC. Also try to negotiate for a positive line on your credit report like "pays as agreed." A line like "settled for less than full amount" is not a good mark on your report. It's a lot to think about, but make sure you know all the angles before you do anything. And I agree, it depends on your situation. Good Luck.
A creditor has 2 choices with a bad account. Sell it for pennies on the $ or get more by cutting the debtor a deal. Of course they could sue but they may just win a dead horse.
What details would you like? Thanks. Jeff All debts are unsecured. All with major credit card companies. No debt is 30 days past due. Amount owed is high. Amount of debt is close to amount of assets owned. Which makes me insolvent. Possibly resulting in fewer 1099 C forms. The Art of Negotiation. Negotiating is not as simple as it seems. There are really good experts out there, but they charge alot. I am still considering Chapter 7. Any further suggestions are greatly appreciated.
