What if I can settle with some, but not all credit cards?

[cbaxter]

I have (6) unsecured cards with varying balances that total close to 72k. I am almost 30 days late on all of them.

I was going to contact the CC on Monday and try to work out new terms for repayment based on Debtors Anonymous methodology as I have spent the last month going over my expenses line by line and keeping a spending log.

I am basically in survival mode right now just taking care of house payments and utilites. I am going to send off a hardship assistance review packet for my house payments on monday to see what/if they can do anything to reduce my mortage payment.

I was just informed by a family member that I might be coming into some money through inheritence and want to try and settle with my lowest (3) cards; $7400-$6800-$3600 for half.

Should I try and negociate with my (3) higher ones first for lower payments, ect and then offer to settle with the lower (3) or vice versa?

The other issue I might face is that I have 3 cards with BOA, but can only settle on 2.

I welcome any thoughts or suggestions...

[neatdesign]

I don't know about BOA, but when I worked at Capital One, only someone who wasn't delinquent on their account was eligible for a hardship waiver (reduced minimum payment, waived minimum payment, etc). Once an account was past due, the hardship waiver wasn't available. So, something to keep in mind.

Didn't you already have a thread about this? Why not keep all related posts in the same thread, rather than starting a new one?

~ Jenney

[creditcardfree]

Any amount that you don't have to pay when you come to settlement agreements is considered taxable income for that year. You will receive a tax statement from the cc company. You will then owe taxes on the amount you didn't pay.

I'm not saying you shouldn't settle, but it is something to be aware of, so you won't be surprised at tax time.

Here's an article about the tax implications of debt forgiveness.