     David Temkin (Dtemkin) | Wednesday, August 09, 2000 - 04:29 pm 
MBNA is offering to forgive 40% of my balance on a revolving charge account I have with them if I'm willing to bring my account current and then pay it off. They haven't listed the account as a charge-off yet. Should I accept it on the contingency that they don't do this(list it as a chargeoff)? This may be a large deciding factor as to whether or not I go for chap7.
-Dave |
| Christine Baker (Admin) | Wednesday, August 09, 2000 - 09:52 pm
Make sure you get in writing that they won't report any derogatory info on it.
If you can't get that, bankruptcy is the better way to go. |
| Senator (Senator) | Thursday, August 10, 2000 - 12:38 am
Why would one debt be a major factor in a ch7 decision? Do not use ch7 unless absolutely necessary--I speak from personal experience. Give us more details here to get more input. I personally think 40% off isn't much of an offer without the deragotory--see if you could get a little more off and an agreement not to verify to any third party. But give us all the details to get a better view on why ch7 should be used. |
| Shylock (Shylock) | Friday, August 11, 2000 - 03:40 am
We don't know much about your decision to make a proper choice for you, but personally I think I'd take the 40% off. After all if you change your mind you can always file bankruptcy later, like 6 months down the road or whatever. |
| David Temkin (Dtemkin) | Friday, August 11, 2000 - 10:20 am
Well, it's around $9000, which is pretty good sized chunk of the $25,000 or so I'd discharge in Chap 7. It's seeming attractive, though, in late charges and additional interest they've tacked on almost $1000 themselves. |
| Shylock (Shylock) | Friday, August 11, 2000 - 03:54 pm
How much do you have to pay to bring the account current? |
| David Temkin (Dtemkin) | Friday, August 11, 2000 - 05:12 pm
They want $450 to bring it current (and "accept" the offer). |
| David Temkin (Dtemkin) | Saturday, August 12, 2000 - 07:05 am
I just got off the phone with MBNA. They offered me two options
A) Settle for between 40-60% of the balance, paid out over a 12month period. The account would be listed as a "Settlement" and not a Chargeoff (I would get this in writing)
B) Bring the account current over a 4-6 month period, and then the account would be listed as current. If all of my payments are on-time (and whatever other history they want to look at), then they will re-open the account on my credit report (and on a limited basis for personal use). The only thing bad on my report would be a 90day past due.
Also, they mentioned something interesting. If I were to do Chap7, and re-aff their debt, they would close the original account (and show it as discharged in Bnk on the CR), but then open a new, revolving account, that the payments would post to (and be reported)
What does everyone think I should do? |
| Shylock (Shylock) | Saturday, August 12, 2000 - 06:51 pm
It's tough to say not knowing all the details of your situation but I'd likely just file bankruptcy and not reaffirm anything.
MBNA's offer does sound pretty good though -- pay $450 and they'll wipe out a good portion of the debt and not report it worse on your credit than DEL 90. |
| Senator (Senator) | Monday, August 14, 2000 - 04:41 am
here are some additional thoughts for you to consider: do you plan on buying a home within 24 months? ch7 will play havoc with this goal. it can still be done, it just gets more difficult. what other debts are involved for ch7? if only 25k i would save the big gun for later. what about 13? you let the court govern your life for five years. credit cards are incredible after ch7, i have saved a huge file of offers with guaranteed amounts after one year following the ch7. that's an easy amount. some employers will ding you for a ch7 and I just had one deny me renters coverage due to my ch7--it's Metropolitan snoopy who's dissing me--try another! they also don't want me to renew my auto insurance with them. fine with me. what is your age? if you are older and are married, consider the effect on the significant other. Mine has still not recovered and fears picking up the phone, or the mail, and needs lots of cash in the checkbook to feel somewhat secure. there are so many factors, but only you can decide. forget about what they list it as, get them to not verify. challenge it subsequently and it will be removed. good luck let us know what happens |
| David Temkin (Dtemkin) | Monday, August 14, 2000 - 11:31 am
Ok, well, I think I like that idea (Not necessarily going for Ch 7). Which should I do, the settlement or pay the debt off in full? Which will look better, or will it not matter in the long run? (90days and paid in full, or 90days + settled)? Will they score the same?
Now, I wonder if AMEX Optima will do the same? The account is currently listed as charged off, but, ironically enough, I haven't heard word-one from any collection agency! I wonder if they'd either be willing to settle, or let me bring the account current... hmm... |
