Attorney pressure to collect credit card debt

[boundaries1]

What is the name of your state? Texas

MBNA debt of 10,500 owed and has been sent to attorney's office for collection. Attn'y is calling asking questions if we are: filing bankruptcy, consider selling home to settle, wanting us to turnover as much money we can in order to take funds to table with MBNA for consideration, but won't tell us settlement amount upfront. Attn'y has said they have already assessed our property and asked if we had retained an Attn'y to represent us.

Also, collecting attn'y advised that he can go to MBNA with approx 50-65% funds for consideration to settle debt final, however states they may not accept our funds as settlement amount, but yet want possession of our funds first. Is it wise to turnover what we have available not knowing a specific settle amount? They can decide to keep our funds and not call the debt final.. and pursue more (this is what their attn'y stated.) We have not committed to a specified amount of funds. What are your recommendations to proceed?

Update:
As of 11/11/05, we thank everyone who has responded to our thread and appreciate your input. We have just found out through caller-id this company is not an attn'y office and in fact, a collection agency located in Houston Texas. The collection agent is a LLC (limited liability corp) called Penta Financial with website: www.pentagroup.us/index.htm.

We will be sticking to the advice of requesting a letter of settlement to be put in writing before consideration of any resolution. Caller id is a wonderful technology.. and for the first time, their call did not come in as out of area!

 

[wayne-o]

Do not turn over your offer until you have a settlement offer/agreement in writing. I had an account with MBNA and they did settle for 50%. I was dealing with MBNA directly and I had an offer in writing, was given 3 months to pay it and received a letter stating account was settled afterwards. Good luck to you

 

[Chien]

Attn'y has said they have already assessed our property and asked if we had retained an Attn'y to represent us.

The attorney is trying to scare you. Your "homestead" is exempt in Texas, so telling you that they've assessed it is blowing hot air.

Now you can choose to "sell your home to settle". That's your choice. The attorney can't get to that asset, and would probably like you to make it easy for the creditor.

Is it wise to turnover what we have available not knowing a specific settle amount?

Absolutely not!. And there is no reason to. The creditor doesn't need to be holding funds to make a decision. If you want to offer an amount, do it. Before you do it, make sure that you can keep any promises that you make, because the creditor can set up a plan that makes it easier to get a judgment, if you beak or can't keep a promise.

If the attorney is offereing 50-65%, there's a chance that you can negotiate something better. Even 50% of what you think is owing is still a large amount. If you want to negotiate, but don't think you're prepared to do it your self, you might want to hire an attorney, for a limited time and fee, to do it for you. It would not take a lot of additional savings to pay that fee.

One thing that's notable is that you don't say when this obligation arose. Since MBNA often relies on arbitration to enforce its rights, and since the attorney is offering an attractive deal, one could wonder the obligation is or is quickly becoming too old to take action, and they want you to pay it anyway.

 

[JETX]

MBNA debt of 10,500 owed and has been sent to attorney's office for collection. Attn'y is calling asking questions if we are: filing bankruptcy, consider selling home to settle, wanting us to turnover as much money we can in order to take funds to table with MBNA for consideration, but won't tell us settlement amount upfront. Attn'y has said they have already assessed our property and asked if we had retained an Attn'y to represent us.

Almost willing to bet that the person you are talking with is NOT an attorney.... but more likely a 'debt collector'.
What is the 'attorneys' name??
Have you confirmed his contact information by getting his phone separately and calling it??