You recently persuaded and discouraged me from filing for Bankruptcy. Thank you! I am reaching again because I do not know who too trust. My current scenario is as follows:
I have (3) credit cards that I stopped paying (6) months ago.
1. Chase – I owed $12,201.58 and it appears they wrote off the entire balance. I just received a 1099 – C from Chase and a 1099 – K from Raiser, LLC out of San Francisco. What does that mean?
2. Bank of America – I owe about $3,400.00. They have stopped the daily phone calls. My credit card statement has recently been removed from BOA’s website.
3. Citibank – I owe $8,560.59. The last letter they offered I settle for $3997.00. More than $.50 on the $1.00.
As a result, I am concerned about the following:
I don’t want to go to court with BOA and/or Citibank.
I was told if BOA and/ or Citibank where to turns me over to attorney’s, I need to address swiftly. I want to avoid attorney’s fees, court fees etc,.
Again, I don’t know who to turn too. Do you have an expert that you can refer me too? What do you suggest I do?
Thank you again for your help!
Terry Says: I’m quite sure that I never persuaded you not to file for bankruptcy. What I tell EVERYONE in this situation is to immediately contact the nearest office of the National Foundation for Credit Counseling. You can do that by calling 800-388-2227. They are a non-profit organization and you can trust them completely. They are in a much better position to review your specific issues and make recommendations. The reason I know I didn’t give you any advice, is that I always suggest this resource — and I always tell people not to bury their heads in the sand on debt issues, something you have obviously done. If a bank writes off your debt and sends you a 1099 form, it means that you now owe FEDERAL INCOME TAXES on the amount forgiven. And dealing with the IRS is much more difficult than dealing with a bank! So make that call for credit counseling today!