My husband was out of work for 18 months (telecom) and I for 8 months (high-tech PR). In order to pay bills, keep our house and pay tuition for our 3 kids, we blew through every penny of savings, 401Ks and IRA'a. The credit card companies would not reduce our interest rates. We were able recently to refinance our house. My husband has paid off all his credit card debt. I have paid off all credit cards except one American Express chargeoff for 10K from 11/2000 (due to my client filing bankruptcy); a late (120 days) MBNA account for 19K at 24% interest; and a Sprint bill for $693 now in collections. Both the Amex and MBNA are reported on all three CRA's. The Sprint bill is not reported to CRA's. How do I handle each of these debts? I want to clean up my credit report, but am not pressed for time to do it (no pending refinance or car loan). MBNA is on the verge of charging this off -- I have offered 50% of the bill, but they have refused. They want 70%. Should I send an offer letter to them, or just let them charge off this debt? MBNA is under the impression that I own my house because my CR shows the payoff of the original mortgage. What my report doesn't show is the refinanced mortgage amount which is in my husband's name only...Do you think with this info they will try to sue? I am new to this board and appreciate any help you can give me. Thanks, Susanna
Susanna, Owing 2 credotors like AMEX or MBNA nearly $30K, I think it's a good bet one or both will sue at some point regardless of whose name is on the mortgage. Wether you successsfully sheltered the home from creditors depends on if you live in a community property state and, did you sign a quit claim deed to get yoir name off the deed? I'd suggest a trip to the lawyer to be certain you've protected your property.
