Negotiating Settlements

What is the name of your state? Florida
I have recently filed Chapter 13. Due to a possible increase in salary, I am thinking about negotiating with the CCC instead. I am now 4 months behind on payments, at what point would they negotiate? When notified of the 13? What is the maximum % of forgiveness I could expect? Would interest accumulation be frozen? Would the rate be lowered? (I had so-called low rates trying to resolve this through the sham credit counseling outfit past year) Thank you, sorry for length.

[Ladynred]

If you've filed for Ch 13, why do you want to waste your money settling now ?? If they're included in your plan, they'll get whatever they get and I'd be willing to bet its far less than what they'd be willing to settle for, so you save money in the long run. Settling at this point isn't going to help your credit rating any, not with a bankruptcy already filed.

Ladynred's right.
I was going to say that you've placed yourself in one of two situations with these creditors:

1. Scared them because you've filed BK (just told them, didn't actually get the paperwork yet). Now, they'll want to charge the debt off as quickly as possible to get their tax break and wash their hands of it. You're at the 180-day mark or near it, so they can charge you off. They won't hesistate to.
2. Showed them that even though you're filing BK that you want to work with them and settle the account.

Now, if the first case is true, it doesn't matter anyhow. If the second is, they would want it in one lump sum. They are in the business of knowing that situations change (and that's how they profit.) In this case, they know that you could very well get swamped with debt between the settlement arrangement and the time the settlement is satisfied. That would mean they stand to lose a substantial amount of money.

In summary, you may as well go forward with the BK. The "bad marks" on your credit are going to be there for years to come anyway... may as well make it one bad mark instead of 10, ya know? The creditors are going to get a settlement on the accounts, and that's what you wanted anyway

Now, once you've completed the BK, go ahead and as soon as possible get a couple of secured lines of credit (secured credit cards are the easiest.)
Only use them for things like groceries, gas, etc. Have the money for any item you are going to buy in your bank account at the time you buy it. Pay off the cards before they have a chance to acrue interest. That will get you started rebuilding your credit immediately. The sooner the better.
Here's a link to check out:

[url]http://www.creditinfocenter.com/rebuild/restore_credt.shtml[/url]

Some of their ideas sound silly.. but it actually works in the long run.

It's very admirable that you want to pay on your accounts. Don't let that change if you can help it.
GOOD LUCK!

Thank you for your advice. So, even if I were to stop the 13, at any point in the plan, it is now on my credit report regardless? (I had wondered about this)

[Ladynred]

Yes, once you file its public record and will go on your credit report and stay for 7 years whether you dismiss it or not.