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Thread: charged off to an attorney?!

  1. #1
    Banned i.breathe.in's Avatar
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    Exclamation charged off to an attorney?!

    i have recieved a final call from bank of america. they are saying that if i do not call and settle at a lower rate by next week the account will be charged off to an attourney and will become a legal matter?

    i thought that everyone told me that it went to collections?

    is this guy just trying to scare me?

  2. #2
    God/dess
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    Default Re: charged off to an attorney?!

    I had this happen with my CC as well. It was Sears though. They may be trying to scare you, but I had to send all my remaining scholarship money and savings to pay it off. I think a lot of companies are hurting for money right now and trying to press it out of people.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    i am planning on filing bankrupsy, should i tell them this?

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    Banned Katrine's Avatar
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    Default Re: charged off to an attorney?!

    You'll still have to pay it back. The laws have changed. Is it so high that you can't strike a deal with the company and pay it back asap?

    "Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
    "And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion

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  5. #5
    AudreyLeigh
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    Default Re: charged off to an attorney?!

    Ive had a couple collections that went to attorneys. Its the same thing as a collection agency. They try to get the atty to get the debt from you before its sent to a collection agency. Theyre trying to get the money in full rather than selling the debt off and receiving pennies on the dollar.

    Itll only show up as a collection - not a judgment.

    Essentially - B of A debt - cant collect
    They have their attorny try to collect (scare tactics)
    Eventually they give up and sell off to collection agency

    Just keep track of it because you dont want the debt showing up 2 times on your CR - atty collection and collection agency collection.

    Once it IS sold off to a collection agency you can take that to the CRA and have them take off the atty collection so its not showing as a double debt. Will be easier for if you do file Ch 13

    B of A are asses so good luck not paying in full...

  6. #6
    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    they are offering me 9000 instead of 26000. i just dont see how i can pay them 9 grand in 6 months. no relatives would lend me that sort of money nor would i let them.

    i have untill the end of the month to decide on weather to go to collections or not.

  7. #7
    AudreyLeigh
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    Default Re: charged off to an attorney?!

    wow... thats a great deal. if goes to collections they would not settle for that. can you set up a payment plan - at least to delay it going to the attorney..

    I dont know how much you make but that = $375 a week for 6 months. I extra day of work to pay it off yourself... when im faced with large bills i try to break it down to days/weeks rather than a lump sum.

    OR if you work 4 days a week you can take $100 from each day and put it away in a box to save to pay them.

    Its an option.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    i guess the real question is if i do pay them the 9 grand is it going to still make my credit look like utter shit. if its not going to look any better then going to collections and bankrupsy then i dont see the point.

  9. #9
    AudreyLeigh
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    Default Re: charged off to an attorney?!

    Yea, but you may want to reconsider BK. How much debt do you have? You cannot just charge it off. Theres no longer Ch 7 discharges.

    You have to make monthly payments. And considering if this is the main big one and the rest are small itd look better to take a year or 2 and slowly pay off collections on your own. Looks a heck of a lot better than a ch 13. I mean, you have to pay it anyway... your report will have a ding anyway - but nothing like a bankruptcy.

  10. #10
    BrunetteGoddess
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    Default Re: charged off to an attorney?!

    Read up on Ch 7. It really is a last resort, and the eligibility is quite strict.



    R and I had to file because we were broke and owed over $500,000 ( part of it our house). I wouldn't file over $26,000.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    i dotn think that i can file. i have been a bad stripper and have not kept up on my taxes at all. i plan on starting to pay this year, but they look at back taxes for earnings and i dont have any back taxes...i really need melonies help on this one!

    if i could get the cc company to knock it down to 5 i could pay it.

    if i go to a debt consolidation company, will i still get the 9 grand offer? or will it go back to 26000?

  12. #12
    AudreyLeigh
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    Default Re: charged off to an attorney?!

    i have a feeling it will go back up - theyll send it there at 26 and the consolidation company will try to get it down again. i think you have a pretty good deal right there. thats only 1/3 of the debt. when they sell it its usually at 50 cents on the dollar. thats $13K and the collection company wants that money back and then some.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    i just negotiated down to 6655. im pretty impressed, im going to set up the payment plan tomorrow i think.

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    Banned Melonie's Avatar
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    Default Re: charged off to an attorney?!

    ^^^ that was a smart move, particularly in light of what might be dredged up if the BK court ordered a full investigation of your earnings / tax history !!!

    The only negative here is that your credit report is going to show a $20,000 'charge-off', but there is no way of avoiding that under your present circumstances.

    Also, be aware that under certain circumstances, B of A could wind up reporting the $20,000 'charge-off' to the IRS ... which in turn would be considered as taxable income to you ... meaning that you may also wind up owing the IRS an extra $5,000 in income tax on the $20,000 'income' you received via 'debt forgiveness'. Also, if B of A files a 1099 for the $20,000 'charge-off' income, there is no escaping filing a 2007 tax return because the IRS computers will definitely try to match up B of A's 1099 info with a tax return bearing the same name and SS#.




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    Last edited by Melonie; 10-10-2007 at 02:32 PM.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    they did make me aware of that. i was already planning on paying taxes this coming year, but the final payment would be in january, so would that go on next years taxes or this years?

    im assuming i can get a payment plan if need be for the taxes correct?

  16. #16
    Banned Melonie's Avatar
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    Default Re: charged off to an attorney?!

    if the 'deal' is accepted in October 2007, then the 'loan forgiveness' income occurs in October 2007 and the 'loan forgiveness' income must be reported on a 2007 tax return ... along with the REST of your 2007 income. The fact that B of A is giving you a few months to make payments is irrelevant to B of A booking the 'loan forgiveness' income as soon as the deal is accepted.

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    Banned i.breathe.in's Avatar
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    Default Re: charged off to an attorney?!

    gotcha. good thing im npot claiming much and i have lots of write offs.

    i better get me ass a shaking. *sighs*

    life lesson 43098345834095. fuck credit cards.

    thanks for your help mel!

  18. #18
    madmaxine
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    Default Re: charged off to an attorney?!

    Quote Originally Posted by i.breathe.in View Post
    life lesson 43098345834095. fuck credit cards.
    Hear, hear!

    Good luck with everything.

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