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  1. #1

    One Final try before BK. Plz Critique my final settlement letter (short!)

    One Final try before BK. Need wise advice on my settlement letter plz.
    Have an offer of 30% from this bank 1 (30K T)
    and 40% from the other. bank 2 (16K T)
    Both OC
    They are both about to be charged off. And say this is my last chance.
    My intended result is to make one last offer before i may have to BK7.
    This is my counter offer of $2000 to bank 1

  2. #2
    You will note from my credit history I had perfect credit for 17 years. Never missed a payment. I worked so hard for that. Now that is all gone.
    You may think it can't happen to you, that's what I thought too.
    If you have ever experienced series of unexpected events that takes away everything you worked for, or a season of multiple, serious loss, almost beyond words - I am sure you know what I mean. I am doing my best to take care of my family as you would too.
    As you informed me, If we settle, I understand you may have to send me an IRS 1099C for forgiven debt and I may have to pay taxes on the amount forgiven as income. that of course makes this even tougher.
    I appreciate your offer to settle of 30%. = ($9,000) However, If I could pay anything close to that much, I would not be in this position.
    Here is my reasonable, realistic, respectful, settlement offer:
    1.1 I agree to pay XXX Bank $2000.00 dollars in total. XXX Bank agrees to accept that payment as settlement in full for all claims and demands associated with these chase accounts, known or unknown. The balance of the Total is forever discharged and SLAVENOMORE is no longer liable for this balance or any charges, penalties, interest or fees associated with these accounts.

  3. #3
    Attn: XXX BANK Customer Service Name(s) on account: Account number:
    To Whom It May Concern:
    Please be advised this alleged debt and account are disputed in their entirity. However, in an effort to resolve this matter,
    Here is my settlement offer:
    1.1 I agree to pay XXX Bank $2000.00 dollars in total. XXX Bank agrees to accept that payment as settlement in full for all claims and demands associated with these chase accounts, known or unknown. The balance of the Total is forever discharged and SLAVENOMORE is no longer liable for this balance or any charges, penalties, interest or fees associated with these accounts.
    2.1 Any remaining balance will not be sold or transferred to another party and $2000.00 is settlement in full for all claims and demands XXX Bank has against SLAVENOMORE arising out of XXX bank Accounts #1,#2, 3. XXX agrees to forever waive all claims, will not sell the balance off, and agrees that SLAVENOMORE is not liable to them for this debt, and the $2000.00 is full and final payment.
    Trade line will be deleted entirely. You will submit a Universal Data Form or similar document to Experian, Equifax, Transunion, and any other credit-reporting agency to which you reported this account, deleting the entire account/trade line.
    4.1 If I am sent a 1099-C. The forgiven debt IRS 1099-C will be mailed after Jan 1st 2013 so that all 1099-C’s are in the same calendar year.
    5.1. SLAVENOMORE agrees to pay the $2000 in payments as stated. They will be paid over 90 days as follows.
    1/1/13: 33% of payment of $667.00 Made out to XXX Bank.
    2/1/13 33% of payment of $667.00 Made out to XXX Bank.
    3/1/13 33% of payment of $667.00 Made out to XXX Bank. ( FINAL PAYMENT IN FULL.)
    If my offer is acceptable to you, please initial the accepted proposal, sign the acceptance below, and return this letter to me in the enclosed envelope.

  4. #4
    Good letters. The banks may not want to explicitly agree to delete the tradelines. I handled a situation like this by using a non-disclosure specifically referencing any disclosure to CRAs regarding these accounts and this settlement. Once the settlement is done you dispute the tradelines. Verification is prohibited by the non disclosure and the CRA must delete.
    Have you consulted a BK attorney? The amounts you propose to pay would probably cover the BK fees, it might be worth paying for a consult with a BK attorney and having the attorney write the letters.
    "I represent SLAVENOMORE, who has retained me to advise on his/her bankruptcy filing should you fail to accept this best and final offer"...
    Many years ago I owned a business that failed and had debt on an office building cross secured with my residence. Bank sued to foreclose, my attorney counter-sued (banks HATE that). Then I brought a well-known BK attorney as well as my litigation attorney to a settlement conference. My litigation attorney asked the bank officer "do you want door number one (settlement) or door number two...? Settlement final with no out of pocket and that non-disclosure in two weeks.

  5. #5
    BRILLIANT! thank you all so much! what great ideas. special thanks for:
    The dispute line ( besides they changed it from fixed to variable, jacked my rate, cut my credit line, which lowerd my fico, increased my interest, and then penalties. all of which put me in this situation.
    The idea of a lawyer sending it on my behalf.
    and taking out the emotional stuff. I guess I just wanted them to know what
    hell drove me to this. I just so want this all to be over, but if there was a way to not do BK and settle it would be easier to re establish credit. as I still have not been behind on my one last discover.
    thank you so much for taking time to help me make this letter better. : )


 

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