Can you make suggestions as to how we can get these collection lawyers to work out a reasonable payment program with us? Or better yet, settle for a percentage?

We stopped paying 2 of our higher balance credit cards last year due to no income. We have liquidated *everything* to get our mortgage paid and children fed. Now, 6 months into a salaried job, we have negotiated (good 60% and smaller) settlements with 4 out of 6 cards. Two cards hired law firms, one which was nasty and would not work with us on any kind of payment program.

Now those two different credit collection law firms are pursuing judgements against us. On one card, Friday was one deadline to answer, but we have been talking to them trying to negotiate a settlement or payment program. They have said that since we are in contact with them to negotiate, they will not pursue a judgement, but I am not trusting this. I know I should be getting things in writing, but I haven't. UGH. Now, I am scared that they will pursue a judgement and freeze our bank accounts or try to go further and put a lien on our home and pursue foreclose.

Same with the other firm. Their idea of a payment plan is impossible for us to pay. Something like $1000 a month. For just one card.

Our income has little to no wiggle room for extra payments. Maybe $400 per month. BUT, we just got a residual commission from work done last year. So now we have $30K of the $50K we owe the cc companies. In my best scenerio, they will settle for 60% of the debt and we can pay them both off and then focus on getting our credit score back up.

Do you have any suggestions for negoitating with these people? A bankrupsy attorney we consulted was not vey encouraging. He seemed to know the law firms and the card (AMEX is one) and said they are very tough and probably will not settle for any smaller amount. ( I wondered if maybe his golf buddies worked for that firm) He suggested we refinance or borrow the money from family, but there is NOTHING left. I even called some mortgage companies to find out about refinancing to borrow the extra 20K, and they told me our credit was so bad from all of the collections that soon no bank was going to touch us.

I am panicking and just want all of this nightmare to end! We want to pay the debt, but we seem to be getting the message that it is "all or nothing". HELP!

Give me some negotiating tactics! Please.

ckinganswers

Ok, first they know you have a job, and they know that most likely they can get a judgement and ge 25 percent of your paycheck, so that is what they know they can get, so why would they want to settle for less?

That is the issue. So why would they take 1/2 when after aa simple court hearing they will get the full amount

Next normally they can put a lien but they can not foreclose on the property, they would have to just wait till you sell the house to collect their money, so a garnishment of your paycheck and attaching your bank accounts would be first thing they do.

Give them your offer in writing of what you can afford, have that as evidece that you tried to make a offer when you go to the judgement hearing.

I did not know that they could take 25% of the paycheck. That is awful. (gross or net pay?) You mention a "court hearing". I assume this happens if we do not answer the judgement or file an answer with the court? I assume they will notify us of a hearing? The bankrupsy lawyer made it seem like they could freeze our accounts without warning.

I guess first thing Monday morning I better contact the County Clerks office to see what is what?

It all seems so arbitrary. Some cc companies are willing to work with you and some, Like American Express, will put your head on a stick and parade around with it. I was buying groceries on my card, not shopping Tiffany's...

I am working with a law firm also concerning a pending judgement. They are wanting 1400 as a good faith payment, then 600 per month until paid in full. I can't do that! I have consulted a lawyer to see if I have any rights? I was served with an arbitration something or other from the county sheriffs office, was given 30 days to answer, sent a response & now they claim they never heard from me.