I’ve heard of a large portion of lottery winners go bankrupt within a couple of years. I had a co-worker that won the California Lottery on July of 1997. he quit and was never heard from again. I now found out that he played the horses, went to the card casinos blew through 4M (he took the lump sum) and was broke within 5 years working a minimum wage job. I found this out a few months ago. How the hell can this happen?

If I’d win the lottery, I’d invest the money and would not buy stupid stuff. A house, hell yeah! investing the money, hell yeah too! I’d pay a company to invest the money to insure myself NOT to be like my former co-worker.

But seriously, why does this tend to happen?

Technorati Tags: california lottery, casinos, co worker, hell, horses, large portion, lottery winners, lump sum, minimum wage job, money, stupid stuff

I am 25, married, and own a small home. Due to very slow payment (I pay mortgage with student loan monies when they arrive), my house is going into foreclosure. I also have a lot of debt from medical expenses, and hubby has major debt (car, credit cards) from his teen years.

I have enough money to reinstate my mortgage without filing some type of bankruptcy. However, that would leave me with no lump sum of safety money. I do work, so I could feed myself – but I never seem to have enough income to pay for regular expenses AND my mortgage. So, if I don’t file bankruptcy and I catch up/reinstate my mortgage…I know I’m going to fall right back into the "non-payment" category again.

Is catching up my mortgage better than filing bankruptcy? What about the other debts that I have? How is credit affected?

(I’m going to grad school, so I have many years of being a poor college student left. I just need to know what I should do about my house and other bills in collections)
Husband is college student too. Together our income is still VERY tight on making all payments on time.

Yes we have cell phone – but no cable/internet/home phones. I don’t know what else to cut.

Technorati Tags: cable internet, car credit, cell phone, collections, credit cards, debts, filing bankruptcy, foreclosure, grad school, hubby, loan monies, lump sum, medical expenses, mortgage, poor college student, student loan, teen years

I am 25, married, and own a small home. Due to very slow payment (I pay mortgage with student loan monies when they arrive), my house is going into foreclosure. I also have a lot of debt from medical expenses, and hubby has major debt (car, credit cards) from his teen years.

I have enough money to reinstate my mortgage without filing some type of bankruptcy. However, that would leave me with no lump sum of safety money. I do work, so I could feed myself – but I never seem to have enough income to pay for regular expenses AND my mortgage. So, if I don’t file bankruptcy and I catch up/reinstate my mortgage…I know I’m going to fall right back into the "non-payment" category again.

Is catching up my mortgage better than filing bankruptcy? What about the other debts that I have? How is credit affected?

(I’m going to grad school, so I have many years of being a poor college student left. I just need to know what I should do about my house and other bills in collections)
SideNote to a response on student loans: Student Loan money can be used for any of the following reasons, not limited to: tuition, educational supplies, food, housing, clothing, misc. necessities / personal items, technology purchases (hardware & software), etc. My lenders are VERY aware of the fact that I am investing in my future by paying for current expenses with loans. Hence, the reason that most lenders always mention "housing or room & board expenses" and are very inclusive on those types of expenses.
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Forget to add: Hubby is also college student (not a bum in case you’re wondering).
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Again, mostly just wanting to find out which Bankruptcy would be beneficial considering my other debt.

If I pay up the mortgage/reinstate – how long will it take of on-time payments to have good standing / good credit again?

Technorati Tags: amp board, board expenses, bum, car credit, educational supplies, filing bankruptcy, foreclosure, grad school, hubby, items technology, loan money, loan monies, lump sum, medical expenses, necessities, student loan, student loans, technology purchases, teen years, time payments

im in debt for ,000 between two seperate credit cards. My payments are too muchto keep paying monthly and im falling farther behind. Is there a company where i can get help to settle my debt? Is it possible to offer a lump sum thats lower than the ,000 to pay it off completely. I need help so please respond if you have any ideas, thank you.

Technorati Tags: credit cards, lump sum, seperate

I’m about to negotiate with a collector on a debt. I want to either make monthly payments or a reduced lump sum. What’s the best thing to say to the collector (without blatant lying) that’ll make the collector more agreeable? Also, what is the best time of the week or day to call?

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if it’s asigned does that mean the offer to settle should go to the original creditor (ie Amex)? by the way debt is from business necessities, and business has been gotten out of–debt was unavoidable and not based on spending habits. trying to avoid bankruptcy and pay off. do they sometimes settle for payments or do they only want lump sum?

Technorati Tags: amex, asigned, bankruptcy, business necessities, creditor, lump sum, spending habits

I understand there are tons of companies out there who offer debt settlement programs. Some sound alright, others have been extremely annoying – after the only thing I really wanted was a consultation and some help understanding the program to begin with, they would not leave me alone!!! (Must work off commission). Anyway, I thought about negotiating with my credit card companies on my own, and one agreed (almost) to a 50% reduction. Sorry this is getting so long, but anyway!!!… How the heck do I pay that lump sum at once? When negotiating on your own, can you also request that discounted balance to be payable over a certain amount of months? Or should I just go ahead with a debt settlement company so I can make payments over 2 or 3 years? If I had a huge 00 cash wad (like needed for the debt reduced 50%, which is only 2 of my 5 cards) then I probably wouldn’t have such a financial problem. lol But I don’t have that kind of money all at once up front..so any suggestions!?

Technorati Tags: 3 years, cards, consultation, credit card companies, debt settlement programs, heck, lol, lump sum, money, settlement company, wad

I am waiting for my attorney to get back to me next week. In the meantime if anyone knows the answer to this, I would really appreciate it. I have already filed and had my court date for my Chapter 7 bankruptcy. My Chapter 7 bankruptcy will be finalized on January 30 2007, and I will be released of all unsecured debt.
On my "Debtors Statement of Intention" document, we put "Surrender" for my car, and that’s exactly what I’m doing with it.
For my house we put "Exempt" which made the equity exempt and allowed me to keep the home without a forced sale. The problem and question is with my home. The mortgage company’s lawyer is pressuring me to "Reaffirm" by January 30. She says of I don’t sign the reaffirm agreement then it will default to "Redeem" "Redeem" seems to mean pay a lump sum or surrender the property? The question is; Is a Chapter 7 debtor’s home mortgage limited to reaffirmation, redemption or surrender, after Exempt? My attorney says there is a 5th choice, do nothing.

Technorati Tags: chapter 7 bankruptcy, debtor, debtors, home mortgage, lawyer, lump sum, mortgage company, reaffirmation, redemption, statement of intention, unsecured debt

I received a court summons a couple days ago for a 5 year old 00 debt that’s been sent to a debt collection agency. So far I’ve talked to the rep 4 times and I’ve offered to settle it in one lump sum of 0. He said he would call me back the same day and did not…so I called him today and he said that he hasn’t herd from "them" regarding my offer and will let me know as it takes a "few days". I feel as if he’s trying to kill some time as my court date is May 10th and feels the pressure will force me to offer more?

What do I need to know regarding this as I’m completely clueless on the process and the length it takes to settle and what happens if an amount is agreed upon.

What do I need to do to put his behind me and settle this for the least amount of money possible? I’m a college student and obviously broke.

Is the process typically back forth phone tag and how long does it take to settle?

I’m in college and totally broke….if I threatened bankruptcy would this help?

Technorati Tags: amount of money, bankruptcy, couple days, court summons, debt collection agency, few days, herd, lump sum, phone tag, quot

Carried x amount in debt. Amex offered to settle the bill for about 65% percent of the balance payable in one lump sum within 30 days. They told me it will affect my credit score somehow but wouldn’t get into specifics. I want to know what happens to my credit score if I do this.

Technorati Tags: amex, credit score, lump sum, specifics

I currently have ,000.00 plus credit card debt and would like to settle and pay them off in the next month. I will have a lump sum to work with and am hoping they will accept 50 to 75 cents on the dollar. I have medical problems and work on commission only. Because of my health, not knowing how much longer I can work with my condition, I can’t consolidate and make monthly payments. My plan would work best for all. I just need some advice on how to communicate best with the creditors.

Technorati Tags: credit card debt, creditors, health, lump sum, medical problems

I spoke to the debt collector and they gave me 2 options at taking care of this debt. I can either settle for a lump sum, which I cannot afford, or make monthly payments of an amount that I cannot afford. I told them I could do lower monthly payments, but they did not accept that offer. What can I do? Any advice or personal experiences is greatly appreciated! I want to pay my debt but I don’t know how to do that if they aren’t working with me at this point. Thank You!

Technorati Tags: debt collector, lower monthly payments, lump sum, personal experiences

My debt is 00 with AMEX and I would like to remove my "charge off." I would like to pay 60(60% of this debt).

Do you think that AMEX will take this offer and agree to removing the "chrage off" and replace it with "paid as agreed"? Or do you think I should just go ahead and offer the whole amount and ask for the "charge off" removal.

Another detail…. I will have to pay in installments because I cannot afford a lump sum.

Technorati Tags: amex, installments, lump sum

For example, If I owe 00, could I try to settle the debt by writing a note to pay off the debt in one lump sum of 00?
Why would I get another loan when I’m trying to pay off the loan that I have? I did not express any type of interest in a loan. Stop advertising loans please. Thank you.
I am not interested in refinancing, a loan or anything. I want a settlement? What don’t you understand?

Technorati Tags: loans, lump sum, refinancing a loan, stop advertising

I’ve been reading a lot about this because I’ve been trying to figure out how to go about settling my debt for much less with all my credit card companies and then just paying them off in full with the amount that’s left after the settlement (they are all in collections and have been for months). What I didn’t know until I started researching this, was that in some cases you do have to report this as income on your tax return. I definitely DON’T want to have to do that. So, two questions. One, what are the guidelines for being eligible to NOT have to report it? And how could I be 100% sure that I won’t have to fill out a 1099? Who would I talk to professionally about this before I decide to pay the debts off, and would I have to pay for their services? I need to do something about these cards soon, whether it’s pay them off or make a payment. Second, if for some reason I would have to report it on my tax return because I wasn’t eligible for not having to report it, is there anyway I could pay it off in full without negotiating a settlement, but still have them lower it? What I mean is, have them possibly take off all the fees that have accrued over the past several months, but not necessarily cut it down to 30-40%, so that it won’t be a settlement that will have to be reported.. so that the lump sum I pay them will be less than if I had to pay what the bills say are due right now. Also, any tips for negotiating with these people? I’ve never done this, only heard and read of several people who have. What do you say, how do you negotiate, how do you tell them you can "only pay X amount", etc. etc. and if I did settle in the end, how would I go about obtaining that statement that I needed to say from them that it was actually settled and paid in full? Do I make sure I get that before I pay or after?
Okay, also, so regardless of whether they settle it for less than 0 or more than 0, I still have to report it as ‘other income’ on my return? And if the amount I settle for is LESS than 0, I just don’t have to pay any taxes on that?

Technorati Tags: cards, collections, credit card companies, debts, lump sum

I owe a large amount on my credit card and have not made a payment in sometime. I now have a lump sum of money and wanted to see if the cc company would negotiate on the amount owed. Much of that amount is late fees. Can anyone help me?

Technorati Tags: cc company, credit card, late fees, lump sum, sum of money

I sent my creditor a certified letter of debt settlement that I would pay in a lump sum, my debt .30 to the dollar. and If they were willing to settle send me a letter signed in agreement! How long do they have respond? It has been a week. Should I keep sending them the letter..? am I on the right track.
I am only 19, and want to fix my mistakes I made with two credit cards I made last year! also how will it look on my credit if its paid?

Technorati Tags: credit cards, creditor, Debt Settlement, lump sum

If you owe the EDD for "overpaid" unemployment benefits – is it possible to negotiate/settle out on that debt with them for lump sum or prompt payment?

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This debt is for a credit card that I have had for 22 years. Prior to now I have always paid off my balance each month in full.

Last September I was in a terrible car accident, I was in the hospital for over one month, and have since had 4 reconstruction surgeries on my legs. I lost my job, and my husband barely makes enough to pay our mortgage and keep the utilities paid each month. We had to use the card to pay for some of my doctor visits, medicine, groceries, etc now the card had about 00.00 on it. My doctor says that I will probably never be able to work again due to the extent of my injuries, and I should file for SSR. We have been unable to make any payments on this card.

Yesterday I received a notice from the CC company wanting to settle the debt. Has anyone ever settled a debt? How should I proceed? Will the CC company want a lump sum, or will they take a minimum payment each month. Honestly I do not want our credit ruined, as we had perfect credit, but I would only be able to make a very small monthly payment, does anyone know if they will accept the payment?

Technorati Tags: 22 years, car accident, cc company, credit card, doctor visits, extent, groceries, job, last september, legs, lump sum, medicine, minimum payment, mortgage, reconstruction surgeries

I had three payday loans worth 0. With intrest they were like 00. After my account went to collections, I kept telling them I am doing everything in my power to pay my loan off. Then when I had the lump sum, two of the companies both agreed to settle my accounts in full for the original amount of the loan, without all the interest and high fees. My one loan was 0 and they settled for 8. Then my other loan was 500 and they settled for 400. The debt settlement company wanted to charge 300 and then 50 bucks amount, so anything extra would be used towards the loan. It seems like it would have cost a lot more to use the payday loan settlement company. All they can do in the end is ask for a lower amount.

Technorati Tags: collections, Debt Settlement, intrest, loan settlement, lump sum, payday loan, payday loans, settlement company

It seems I can just as easily pick up the phone, and settle with the credit companies, instead of paying someone else too. Does anyone know if you have to come up with a lump sum or make payments when you settle debt?

Technorati Tags: credit companies, lump sum

If a deliquent credit card account was charged off by the original lender, can you still offer to pay the account in full even if a debt collector has aquired it and has served you with a summons to appear? I’d could probably get the money to pay it in full, or at least enough to make a good lump sum offer, but I’d rather settle it with the original lender if possible?

Technorati Tags: credit card account, debt collector, lump sum, money, summons

The insurance company for my former Mortgage company claims I owe over ,000 from the loss occurred by the foreclosure but are willing to accept a lump sum of ,000. They will only accept payments on the original amount. How can I have the amount lowered and still allowed to make payments?

Technorati Tags: company claims, foreclosure, insurance, insurance company, lump sum, mortgage company

I am a senior in college, I have no job now as I am finishing school. I start work in June, and I actually have good credit, over 700, and 5k in credit card debt. I’ve paid my bill in full always in the past until my last killer spring break. Debt settlement sounds cool to cut the debt in half which I would pay off with a lump sum, or should I just stomach it for another month where I can pay it all off entirely in full. Thanks.

Technorati Tags: credit card debt, Debt Settlement, finishing school, job, lump sum, spring break