Good number for debt settlement of 300k

[jennh]

I have an AMEX charge card with 300k balance which my mother used for her business. She had difficulties with her business for a while and couldn't make payments anymore. I don't want to sue my mother so I have to negotiate as much as I can.

We stopped making the payments on this card for 8 month now and my collection has transferred twice. I would like to know where to start.

Is it harder to get negotiation with higher amount of debt? I read many articles about negotiating with collectors to 20% - 50% amount due but my debt amount is much higher than many people and this seemed like a different case. With my school loan of 200k, it will be impossible for me to pay 500k..


I would appreciate any advice!!

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On a side note..

My girlfriend and I were planning on getting married this year but this happened. Now I'm considering on staying as a single because I don't want to give her my burden if we get married. We found out that my girlfriend's father had cancer last year so my only excuse to be staying with her is supporting until her father survives cancer.

Trusting and caring family is good but I hope no one else makes the same mistake as I did..

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[Fishindude77]

Sounds like this is in your name, so the creditors won't give a hoot about your mom's situation. If you have the ability, resources and collateral to pay it back, they will expect you to do so. If you can convince them that you are broke, or that you will file bankruptcy rather than pay for any of this, then you may have a shot at negotiating down the amount, you'll just have to talk to them and see what you can do.

In my mom's last years, she ran up $38,000 in cc debt I was unaware of until she became ill and I took over her finances. Creditors were hounding the heck out of her and she had under $1,000 in the bank and no assets. I explained to creditors that there was no way that she had the ability to pay that amount back, but my brothers and I would pay if they were willing to negotiate it down. It was either that or nothing. We settled for 50%.

If you do something like this, make sure you get documentation spelling out that this settlement will pay the debt in full. May be wise to spend a couple $$ with an attorney.

[jennh]

Thank you so much for your advice and I'm sorry about your situation. But 50% does sound great..

I have no assets and not much in the bank either. I'll try negotiating first and find an attorney if it doesn't go well. I just hope that they will allow me to make split payments of $3000 each month.

[97guns]

they will allow you to do anything you want, you hold the cards and can negotiate, they will go lower for a lump sum payment, you should have gotten some reduced payment offerings already if its been handed off that many times

[jennh]

Thank you 97guns, that makes sense. I reduced it down to 150k and I'm waiting for the paper to sign.

[disneysteve]

Thank you 97guns, that makes sense. I reduced it down to 150k and I'm waiting for the paper to sign.

Make sure you don't do anything that gives them electronic access to your bank account. No auto-withdrawals. Pay them manually.

[jennh]

disneysteve I've heard stories but I totally forgot about it. Thank you!

[dczech09]

Why were you letting your mother use your charge card? It sounds like you authorized her using your card. If that is the case, then you legally owe the money...

Suing your mother probably would not do any good, even if you were receptive to it. The only exception is if she did this without your knowledge and/or authorization (in which case she would have committed fraud, she would be prosecuted, and you will not owe the money she charged without your consent).

Everyone else here is spot on.

Try to negotiate, and make sure you mention that you and your mother do not have the money to pay the balance. If they won't settle, you could be forced into bankruptcy which means that they may not get much or any money (make sure they understand this).

If they settle with you, then great. If not, then talk to a bankruptcy attorney. An attorney will likely try to negotiate a settlement on your behalf before proceeding with the bankruptcy.

Basically, start by working with Amex yourself. If that does not go anywhere, then get an attorney involved. If that does not go anywhere, your attorney will probably take your case for filing bankruptcy.

Good luck!