can creditors be reasoned with

[sunfall]

For more info, please see evanwilson's post. I am the sister in question.

What I wonder, as a possible alternative to BK, is will creditors negotiate using elementary logic?

Here is what I would tell them, which, is completely accurate by the way, knowing the parties involved.

I am seriously considering bankruptcy. Based on that action, my ex-husband will either forfeit the truck, or more likely, declare BK himself. It seems that the best recovery they can hope for in that scenario is less than half of what they would get if they took option B, my offer.

Option B then, is that I apply a little arm-twisting on my ex (threatening to file contempt charges for refusal to pay child support oughta do it) such that he will sell the truck for a fair market value. This money will be turned over to the finance company. They accept this as a settlement, and close the account, charging off any remaining balance. I try to get from them, in writing, a notice that such a charge-off will not reflect on my credit. I know, it's a long shot, but if they say no, I'm no worse off than I am now.

My logic is simply that getting the approximate 5 K they would get if he sold the truck is going to beat the 2-3 K they said they would likely receive from the sale of the truck if I declare BK.

For the Visa creditor, I would apply similar logic, perhaps adding that I would pay some small settlement (perhaps up to half the remaining bill) in exchange for them agreeing to absolve me of any further responsibility. Any collection efforts they maintain against my ex would be for them to decide. In short, get my name off the account in exchange for X dollars, or I file BK and you get nada.

Please tell me: Is this possible? These are bankers I'm dealing with; they will see the wisdom of accepting a larger amount won't they? Knowing they can't hope to see any more of a settlement than that? Also, any other steps you can see helping in such a scenario?

If it works, I come out owing perhaps $900 of HIS debts, which, provided I give him 10 days' notice of my intent, I can keep on my books until such time as he can pay it--with the interest the company was charging. If I could get the company to charge off the entire thing, I wonder, could I keep the entire bill on my books, even tho I only paid part? Odds of recovery are slim, but he might get an inheritance or something someday.

Dear sunfall,

Anything is possible. Why don't you put these suggestions to the creditor and find out their response. The worst thing they can do is tell you no.


[email]JASON@LEGISLATOR.COM[/email]

"What are you people thinking???"