Hi Terry,

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!