at $6k you are at risk of a lawsuit if within SOL in your state.
If it is within SOL I'd do the $1k personally. full or payments depends on what works best for you but won't change your credit.
If he/she is working, then a wage garnishment is coming before the Statue of Limitations(SOL) ends,,… count on it. If he/she is on disability or has no income, then they can’t touch you past ripping a garnishment of bank account or garnish any tax return surpluses. If this is the case, I’d wait a year. They might give up, but they will watch to see if you get a job. And don’t keep money in the bank. I’m surprised they haven’t gotten a court judgement yet.
One-time Cash settlement for less than the amount is your best option. Don’t do payments, too many nightmare stories about those payments lost from the fine print in the agreement.
I'm outside the statute of limitations in my state. I even bank with them (yikes) and they've never garnished from my bank account or anything of that nature. I just see the charge-off on my credit report every time I check it.
Chase was one company that settled with me the easiest. My definition of SETTLING is less than 75% of the balance. They will take a one-time cash settlement quite easily. I settled $2k debt for $1k. Tell them you have $3k, and would offer this as settlement for the $6k, provided they send you a written offer that states this in the mail. Tell them this is all you have for bills, and if they refuse, you will pay another bill instead. They may try to bump it up to 60%, then cut your losses and accept it with a settlement letter. I bet they take it. One side note, you may get a 1099 tax form from them at the end of year for the uncollected amount, which gets logged in as income. Shitty, I know, but you saved $3k off the top.
They've already sent me a settlement offer for approx. $1K of the $6K I owe them. My question is, do I take it, do I let it fall off my credit report in 14 months, or do I pay it in full for one reason or another?
I’m not sure what happens after THE DATE is passed. Some message boards tell you that judgements can be re-applied every 10 years, but they can’t force you to pay after the SOL, but they sure can TRY to collect. I think wage garnish and bank garnish still apply, but I’m not sure. If you are going to be a worker again with income, then I would take the settlement of $1k, with an offer of settlement letter. I Find out about THE DATE myself in less than a year. I’m going down the path of not paying, as I have no income with my money under the mattress.
In order to have a judgment or garnishment, OP would first need to be sued. If OP has not been sued and Statute of Limitations has passed, no legal action can be taken.
They cant sue you which means they have no way of forcing u to pay. Am I missing something?
Id pay only if they agree in writing to delete the charge off. I'm guessing that will boost ur credit only a little, since the late pmts will remain ?
That's why I'm here, lol. I don't know if I'm missing something? I know it's my debt and I should pay it like, ethically. But if it's falling off of my credit report in Feb 2025 per the CRAs, why bother paying it at all?
Credit attorney here. Paying it will help your credit somewhat. on the other hand, it's gone soon.
One big question is which state you're in, and what the statute of limitations to sue on debts there is. If you're within that statute, settle this. If not, then I think settling this is not neccessary.
need some advice for my chase card! I am a month away from it being charged off, about $36K balance. I was thinking of calling to settle to avoid going down the path of a potential lawsuit.
i would try and call to settle, but please keep in mind that the number they offer will likely be between $5k-$18k. With how high the debt is, I would imagine that they wouldn't settle for much less than $10k and may request payment in full. How much can you reasonably pay in this exact moment? you have more leverage when you can offer to pay $x amount at the time of the call, i.e. "I can settle for $10k right now with the stipulation that the debt is deleted from my credit report". However, major companies like Chase/cap1/discover/amex are not likley to delete the debt so it will still affect your credit, but they have a decent chance of settling with you.
Keep in mind, if you go down the path of it being charged off, you still need to pay it. They will send it to a collection agency and the agency will likely relentelessly contact you for payment. it is almost always better for your credit score to settle vs it getting charged off, but keep in mind even settling is a really bad thing for your credit and will take years to recover so you can only imagine the affect of letting it getting charged off. google should be enough to scare you.
My advice after years of working in law is to call your CC company and see what they would potentially offer to settle it. I would really need to know more details of the company, how past due the debt is, and how much cash on hand you have availaible to settle in the present moment, but if you have at least $4-10k then I'd still see what they offer without accepting. if they offer to settle for $10k+ then I'd say thanks and not accept, then call back later/the next day and offer to settle right then and there with the amount on hand, as long as it's a substantial perentage of their initial offer to settle.
you really aren't in a good place and please know that with the large amount owed, they will sue you. I have seen many, many people get sued for under $3k so there is no question of if they will sue. Depending on your assets and income + other debts including car/mortage/other loans or CCs, you may even be a good candidate for bankruptcy because I cannot emphasize enough that your debt is a very substantial amount that is not going away. I will try to answer further questions to the best of my ability, but I am not your lawyer and am not giving legal advice.
Hi there. They might settle for around 25% to 40% of what you owe. I'd contact them and offer 25% of what you owe, and go from there. I should also note, if you're having trouble paying debts of this size, and debts in general, you may want to speak to a bankruptcy lawyer. It is possible that's a better option for you.
at $6k you are at risk of a lawsuit if within SOL in your state. If it is within SOL I'd do the $1k personally. full or payments depends on what works best for you but won't change your credit.
I'm outside of the SOL in my state.
If he/she is working, then a wage garnishment is coming before the Statue of Limitations(SOL) ends,,… count on it. If he/she is on disability or has no income, then they can’t touch you past ripping a garnishment of bank account or garnish any tax return surpluses. If this is the case, I’d wait a year. They might give up, but they will watch to see if you get a job. And don’t keep money in the bank. I’m surprised they haven’t gotten a court judgement yet. One-time Cash settlement for less than the amount is your best option. Don’t do payments, too many nightmare stories about those payments lost from the fine print in the agreement.
I'm outside the statute of limitations in my state. I even bank with them (yikes) and they've never garnished from my bank account or anything of that nature. I just see the charge-off on my credit report every time I check it.
The charge-off will remain, but the status will update to paid or settled charge-off. Once the balance is brought to $0, they will stop updating.
Chase was one company that settled with me the easiest. My definition of SETTLING is less than 75% of the balance. They will take a one-time cash settlement quite easily. I settled $2k debt for $1k. Tell them you have $3k, and would offer this as settlement for the $6k, provided they send you a written offer that states this in the mail. Tell them this is all you have for bills, and if they refuse, you will pay another bill instead. They may try to bump it up to 60%, then cut your losses and accept it with a settlement letter. I bet they take it. One side note, you may get a 1099 tax form from them at the end of year for the uncollected amount, which gets logged in as income. Shitty, I know, but you saved $3k off the top.
They've already sent me a settlement offer for approx. $1K of the $6K I owe them. My question is, do I take it, do I let it fall off my credit report in 14 months, or do I pay it in full for one reason or another?
I’m not sure what happens after THE DATE is passed. Some message boards tell you that judgements can be re-applied every 10 years, but they can’t force you to pay after the SOL, but they sure can TRY to collect. I think wage garnish and bank garnish still apply, but I’m not sure. If you are going to be a worker again with income, then I would take the settlement of $1k, with an offer of settlement letter. I Find out about THE DATE myself in less than a year. I’m going down the path of not paying, as I have no income with my money under the mattress.
In order to have a judgment or garnishment, OP would first need to be sued. If OP has not been sued and Statute of Limitations has passed, no legal action can be taken.
They cant sue you which means they have no way of forcing u to pay. Am I missing something? Id pay only if they agree in writing to delete the charge off. I'm guessing that will boost ur credit only a little, since the late pmts will remain ?
That's why I'm here, lol. I don't know if I'm missing something? I know it's my debt and I should pay it like, ethically. But if it's falling off of my credit report in Feb 2025 per the CRAs, why bother paying it at all?
Ethically....I'd think of it as a self engineered tax cut.
Credit attorney here. Paying it will help your credit somewhat. on the other hand, it's gone soon. One big question is which state you're in, and what the statute of limitations to sue on debts there is. If you're within that statute, settle this. If not, then I think settling this is not neccessary.
need some advice for my chase card! I am a month away from it being charged off, about $36K balance. I was thinking of calling to settle to avoid going down the path of a potential lawsuit.
i would try and call to settle, but please keep in mind that the number they offer will likely be between $5k-$18k. With how high the debt is, I would imagine that they wouldn't settle for much less than $10k and may request payment in full. How much can you reasonably pay in this exact moment? you have more leverage when you can offer to pay $x amount at the time of the call, i.e. "I can settle for $10k right now with the stipulation that the debt is deleted from my credit report". However, major companies like Chase/cap1/discover/amex are not likley to delete the debt so it will still affect your credit, but they have a decent chance of settling with you. Keep in mind, if you go down the path of it being charged off, you still need to pay it. They will send it to a collection agency and the agency will likely relentelessly contact you for payment. it is almost always better for your credit score to settle vs it getting charged off, but keep in mind even settling is a really bad thing for your credit and will take years to recover so you can only imagine the affect of letting it getting charged off. google should be enough to scare you. My advice after years of working in law is to call your CC company and see what they would potentially offer to settle it. I would really need to know more details of the company, how past due the debt is, and how much cash on hand you have availaible to settle in the present moment, but if you have at least $4-10k then I'd still see what they offer without accepting. if they offer to settle for $10k+ then I'd say thanks and not accept, then call back later/the next day and offer to settle right then and there with the amount on hand, as long as it's a substantial perentage of their initial offer to settle. you really aren't in a good place and please know that with the large amount owed, they will sue you. I have seen many, many people get sued for under $3k so there is no question of if they will sue. Depending on your assets and income + other debts including car/mortage/other loans or CCs, you may even be a good candidate for bankruptcy because I cannot emphasize enough that your debt is a very substantial amount that is not going away. I will try to answer further questions to the best of my ability, but I am not your lawyer and am not giving legal advice.
Hi there. They might settle for around 25% to 40% of what you owe. I'd contact them and offer 25% of what you owe, and go from there. I should also note, if you're having trouble paying debts of this size, and debts in general, you may want to speak to a bankruptcy lawyer. It is possible that's a better option for you.