Debt Consolidation

[SuperFlyer]

I'm sorry if there is a thread elsewhere, I couldn't find.

Such a thread when people are in need, could be a lifesaver to those needing this.

[SuperFlyer]

So, someone asked me:

A debt of approx 20k by amex.

The person used a debt consolidating company that slashed that in half, but is charging abnormal fees, which is counter productive.

Now there is an inbound summons to court, but it seems Amex is still interested potentially in a deal.

Anyone knows something or someone (honest) that could help?

Thanks a lot!

[AsherO]

So, someone asked me:

A debt of approx 20k by amex.

The person used a debt consolidating company that slashed that in half, but is charging abnormal fees, which is counter productive.

Now there is an inbound summons to court, but it seems Amex is still interested potentially in a deal.

Anyone knows something or someone (honest) that could help?

Thanks a lot!

It depends on whether statute of limitations expired (likely not if they have a court summons), age of the debt, debtors financial situation (income, assets, other debt), etc.

I’ve seen reports of people settle stuff with Amex for less than 20% but that’s rare and requires the ducks to line up (SOL expired, older debt, low income, no assets, etc). It’s likely if debtor has the means to pay in full they can offer Amex 50% paid in full to settle the debt, worst case they get a higher counter-offer.

It might be worth speaking to (even paying?) someone competent or researching on credit boards/Reddit etc, as there might be legal reasons why Amex doesn’t have a case which could give the debtor leverage and potentially result in settlement amount that is more favorable to them.

[SuperFlyer]

It depends on whether statute of limitations expired (likely not if they have a court summons), age of the debt, debtors financial situation (income, assets, other debt), etc.

I’ve seen reports of people settle stuff with Amex for less than 20% but that’s rare and requires the ducks to line up (SOL expired, older debt, low income, no assets, etc). It’s likely if debtor has the means to pay in full they can offer Amex 50% paid in full to settle the debt, worst case they get a higher counter-offer.

It might be worth speaking to (even paying?) someone competent or researching on credit boards/Reddit etc, as there might be legal reasons why Amex doesn’t have a case which could give the debtor leverage and potentially result in settlement amount that is more favorable to them.

Thanks so much for that info.
Would you know of anyone competent?

[SuperFlyer]

Anyone can help here, I'd appreciate.

[yelped]

@TimT

This was discussed here a couple of times, with some valuable insights shared.

[whacked1]

Anyone can help here, I'd appreciate.

PM sent

[AsherO]

Thanks so much for that info.
Would you know of anyone competent?

Unfortunately not. All I can say be careful because that market is saturated with sharks who'll take your money and might not improve (or could even adversely affect) things.

Other factors to consider:
- If credit standing is important to AH, consider negotiating to pay-for-removal. Though that's less likely when there's looming legal action, so maybe it's more for someone else reading this.
- Also consider that if the debt is settled for less than the full amount, the remainder is likely taxable and the creditor will likely issue the debtor a  1099-C at the end of the year. There are some exemptions but it's likely (in my layman's assessment) that the OP's situation doesn't qualify. Consult a tax professional for clarification.

[SuperFlyer]

Thanks so much for all the input!

[SuperFlyer]

@TimT

This was discussed here a couple of times, with some valuable insights shared.

Would you have a link please?
I can't seem to find it.
Thanks a lot.