Paperwork ready to file for BK; Anyone heard of 20% settlement with CC companies?

[kmh]

What is the name of your state? Wisconsin
I have been reading the messages posted since we looked up Wolpoff & Abramson on your site. We have all the paperwork done for our bankruptcy, but I am wondering if people reading this thought we had a chance to negotiate down what we owe. As I was reading some postings I see some people have had success with negotiating down the balances owed with the credit card companies. We owe MBNA a good chunk of $. My husband spoke with someone with MBNA and told him we were ready to file. MBNA talked about us paying 40% of the monies owed. We cannot afford to do that. My husband told them we might be able to swing 20% of the balance. The MBNA person said they don’t do that anymore, but he would check with the top people. He requested that we send him our budget so he could show the people that we could not afford to pay more. We fax him our budget. Shortly after that we started receiving letters from Wolpoff and Abramson. It has been about 6 months since we paid on the credit cards. I would think they would rather have some money instead of having us file and get no money. Do companies ever settle for 20%? At this point is it worth a letter to MBNA or W & A to negotiate a 20% payoff? Has anyone heard of credit card companies settle for 20% and taking off negative info. on credit reports? Or should we just file and be done with it?
Thank you in advance for taking the time to read this and answer!

 

[ihatearizona]

I seriously doubt they will accept 20% and a pay for delete.

I'd go ahead and file the BK.

BTW: All combined, how much do you owe to your creditors?

 

[kmh]

It was $55,000, but now probably up to atleast $60,000 with all late charges etc.

 

[ihatearizona]

File, file, file, file.

 

[jetskiscott2]

File and start over

 

[bigun]

I'd suggest file as well. And, to anyone else reading this, NEVER disclose any personal financial information to a creditor on a defaulted account. They can damn well tell what your situation is by pulling your credit report and seeing a raft load of defaulted/chargedoff accounts.
You are in an adversial situation. Alwayas act in your best interest-forget about your creditor. Don't give them any potential information to use against you.

 

[dosumi]

Don't forget this

When you settle with the CC company they report the amount to the IRS and now you will owe taxes on that amount. So if you settle, make sure you calculate how much tax you will owe.
We have also not paid on our CC debt for about 6 months and have received many offers from them. from 20% to 60% off and a few at 0% just want their money. I have not talked to them and don't plan to. If you are like most people you will always look for a way out other than BK. Just make sure you cover all the consequences no matter which way you go. We have looked at everything we could find on ways not to file, and none worked out. So we file in Jan. and hope to get back on track as soon as possible.
Good luck on what ever you decide.