Posted on March 12, 2010 at 2:41 am How are the creditors in terms of settling debt for less than owed? Do they settle at all? For how much?

Posted on March 12, 2010 at 2:47 am settling debt for less than owed? Do they settle at all? -- A good question,and it's not impossible for the creditors to settle. They do settle, but you have toask them what their conditions are - because of course, they'd rather collecton the full amount

Posted on March 12, 2010 at 3:58 am settling debt for less than owed? - if you're account is still current, they might not settle. Although if you proposeto pay 75% of the debt in one payment ... it would make it hard for them to refuse.

Posted on March 12, 2010 at 4:26 am Settling debt for less than amount owed - if this happens, know that the IRS wouldconsider it an income, so don't forget to report it on your return as such - to avoidpenalties.

Posted on March 12, 2010 at 4:47 am I agree with Chairman - however, if you've stopped payment for5-6 months, your account would be assigned to a third party collectionagency, and there's where you have a good chance at settling your debt -to 40-79%

Posted on March 12, 2010 at 5:58 am Speaking of settling debt for less than the amount owed - if you do debt settlement -and the forgiven debt amount is less than $600 - you don't have to report that as incomeon your return.

Posted on March 12, 2010 at 6:36 am Creditors will settle for 50% or as low as 35% of the balance of what you owe. They are not quick to do it as they must see proof of hardship. Not being able to pay for 5 months would qualify. If they don't settle with you, the debt is "charged off" as a loss and sold to a debt collector for as low as 5 cents on the dollar. That collector will attempt to collect directly fromyou at perhaps, 20 cents on the dollar. A good deal for you, but bad for your credit score. A bad deal for the lender, so settleing with you for 35-50% ends up a good deal for them. Not to mention the potential of someone going Bankrupt and them not getting anything.You can take the "do it yourself" approach. Where you might buy a kit with instructions orGo through a reputable debt settlement company.

Posted on April 8, 2010 at 3:50 am Settling debt for less than owed - how to choose a debt settlement company and what to look for - -The settlement company's program must have a fast completion time. 12-36 months. -The program must be able to protect and improve the consumer's credit standing. -Must be a member of the Better Business Bureau, BBB, for at least 5 years. -Must also have a good standing with the Chamber of Commerce -A Member of TASC - The Association Of Settlement Companies and the IAPDA or the International Association of Professional Debt Arbitrators