Author Topic: Really need advice/input ASAP  (Read 1179 times)

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MTBeth

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Really need advice/input ASAP
« on: August 02, 2017 12:14:46 AM »
So I've posted here several times regarding my credit issues. Long story short in December I was served with a suit from Midland on a credit card which had a last payment in Spring 2012. They served me just a few months short of the 5 year MT SOL. I didn't know about arb at that time and hired an attorney to represent me. He filed an answer and counterclaim, and we've been going back and forth with discovery etc ever since. It's now going into month 8.

Just heard from my attorney a few minutes ago via email. Midland wants to settle. They want a one time payment of approx 15% of what they are suing me for. I believe I can win this and hate to give them one penny. On the other hand I'd be kicking myself if I got stuck with the full amount plus their court costs, not to mention I'll have to continue to pay my attorney moving forward.

If Midland thought for one second they could win this, or collect from me I don't know why they'd be offering a settlement. I've also looked up this attorney's other cases (MT doesn't have online access to the court system, but this particular attorney is licensed in several surrounding states and I've looked up his cases in those states online). Obviously 95% were default judgments, but in EVERY SINGLE case I could find which was actually defended in court Midland/this attorney dropped the case shortly before trial. I couldn't find a single case which went to trial out of hundreds!

I'm between jobs right now so even coming up with the 15% would be a challenge and I don't have it on hand. If they came down to about 10% I might be able to do that if I had 30 days to come up with it. I want to be smart though. I believe I can win this and the offer to settle is proof of that fact!

Advise? Thoughts? I need to get back with my attorney tomorrow and want to be smart in making my next move! Any and all input is appreciated!

HarryC

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Re: Really need advice/input ASAP
« Reply #1 on: August 02, 2017 02:23:56 AM »
I have never gone up against Midland, but I have gone up against my share of other law firms, and in every one of those cases, the initial offer was higher than what we finally settled for.

If it was me, I'd counter with 5% and plan on settling somewhere around 10%.
I'm not a lawyer and I'm not even very smart.  You'd be well advised not to listen to anything I have to say.

MTBeth

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Re: Really need advice/input ASAP
« Reply #2 on: August 02, 2017 02:37:15 AM »
I have never gone up against Midland, but I have gone up against my share of other law firms, and in every one of those cases, the initial offer was higher than what we finally settled for.

If it was me, I'd counter with 5% and plan on settling somewhere around 10%.

Thanks for the reply Harry. I was sort of thinking along those lines, but concerned that the deeper we get into this legal case the more Midland will have invested, and perhaps consequently they'd be less likely to settle for this amount. Also, the longer this goes I'll have to continue paying my attorney which further limits my ability to save for a future settlement.

What good would it do if say this drags on for 6 more months and they then offer to settle for 10% yet in the meantime I've spent the difference paying my attorney, and in the process I've risked that Midland would no longer be willing to settle or would want even more of a settlement down the road?

I suppose no one can predict the future! Decisions, decisions!

MTBeth

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Re: Really need advice/input ASAP
« Reply #3 on: August 02, 2017 04:17:24 AM »
Problem is Midland is then obligated by law to send a 1099. what size is deb?

My understanding on that is that being insolvent it'd not make a difference? If I have multiple collections accounts and charged off cards still on my credit reports and at this point am renting and have few assets I believe that's the case? The debt is approx 10k.

Bubbles

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Re: Really need advice/input ASAP
« Reply #4 on: August 02, 2017 07:11:48 PM »
Take the opportunity!

Bruno the JDB Killer

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Re: Really need advice/input ASAP
« Reply #5 on: August 02, 2017 07:57:49 PM »
I would not settle with Midland. That admits the validity of the debt, and they can issue a 1099 based on that. If they won't go to arbitration or court, what legal basis do they have to say you owe them anything?
I am not an attorney. Any information I post is strictly my opinion and should be treated as such.

Flyingifr

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Re: Really need advice/input ASAP
« Reply #6 on: August 02, 2017 08:47:51 PM »
I would not settle with Midland. That admits the validity of the debt, and they can issue a 1099 based on that. If they won't go to arbitration or court, what legal basis do they have to say you owe them anything?

The fact that the case is disputed is a loophole in the 1099C. In the settlement agree that you are paying only the agreed upon amount owed and all else is disputed.
BTW-the Flyingifr Method does work. (quoted from Hannah on Infinite Credit, September 19, 2006)

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Bubbles

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Re: Really need advice/input ASAP
« Reply #7 on: August 02, 2017 09:03:33 PM »
How strong of an argument is necessary to affect this loophole?

The fact that the case is disputed is a loophole in the 1099C. In the settlement agree that you are paying only the agreed upon amount owed and all else is disputed.

MTBeth

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Re: Really need advice/input ASAP
« Reply #8 on: August 02, 2017 09:36:03 PM »
I would not settle with Midland. That admits the validity of the debt, and they can issue a 1099 based on that. If they won't go to arbitration or court, what legal basis do they have to say you owe them anything?

We're already in court. The filed suit and I was served in December. We've gone through the discovery process and now I'm hearing from my attorney that they've offered to settle (hopefully I can meet with my attorney tomorrow to learn the specifics of how this offer came about).

I guess what I'm wondering is... for anyone who's been in this situation what typically happens next? Is their offer to settle an indicator that they lack documentation to prove their case, or that they are unwilling to go to trial? If I refuse to settle is it more likely they will eventually drop the case altogether, offer a better settlement down the road, or move ahead to trial for the full amount?

I suppose I'm just wanting some idea of how the process typically goes (or has gone for others) so I can make a more informed decision about this offer.

MTBeth

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Re: Really need advice/input ASAP
« Reply #9 on: August 02, 2017 09:38:05 PM »
The fact that the case is disputed is a loophole in the 1099C. In the settlement agree that you are paying only the agreed upon amount owed and all else is disputed.

If I have more outstanding debt than assets I would be insolvent thus a 1099C would be irrelevant for me, correct?

Bubbles

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Re: Really need advice/input ASAP
« Reply #10 on: August 02, 2017 10:03:35 PM »
In a settlement with a bank, the bank certainly knows the amount of principle forgiven.

But what about JDBs?

Remember, the taxes are only on the amount of principle forgiven.

Problem is Midland is then obligated by law to send a 1099. what size is deb?

Bubbles

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Re: Really need advice/input ASAP
« Reply #11 on: August 02, 2017 10:13:40 PM »
Maybe the attorney for Midland ONLY goes to trial in MT. Ever think of that?

Nobody can tell you what Midland thinks, or may do.

Even if you reliably knew on the average what Midland might do, it doesn't matter.

All that matters is YOUR case.

You can't do much better than 15% and have the case dismissed.

Get a second job, borrow from a friend, sell something, go without something. But figure out how to come up with a settlement. If your attorney thinks he can abit better than 15%, fine - but good deals have been known to evaporate!

So I've posted here several times regarding my credit issues. Long story short in December I was served with a suit from Midland on a credit card which had a last payment in Spring 2012. They served me just a few months short of the 5 year MT SOL. I didn't know about arb at that time and hired an attorney to represent me. He filed an answer and counterclaim, and we've been going back and forth with discovery etc ever since. It's now going into month 8.

Just heard from my attorney a few minutes ago via email. Midland wants to settle. They want a one time payment of approx 15% of what they are suing me for. I believe I can win this and hate to give them one penny. On the other hand I'd be kicking myself if I got stuck with the full amount plus their court costs, not to mention I'll have to continue to pay my attorney moving forward.

If Midland thought for one second they could win this, or collect from me I don't know why they'd be offering a settlement. I've also looked up this attorney's other cases (MT doesn't have online access to the court system, but this particular attorney is licensed in several surrounding states and I've looked up his cases in those states online). Obviously 95% were default judgments, but in EVERY SINGLE case I could find which was actually defended in court Midland/this attorney dropped the case shortly before trial. I couldn't find a single case which went to trial out of hundreds!

I'm between jobs right now so even coming up with the 15% would be a challenge and I don't have it on hand. If they came down to about 10% I might be able to do that if I had 30 days to come up with it. I want to be smart though. I believe I can win this and the offer to settle is proof of that fact!

Advise? Thoughts? I need to get back with my attorney tomorrow and want to be smart in making my next move! Any and all input is appreciated!

BellEbutton

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Re: Really need advice/input ASAP
« Reply #12 on: August 02, 2017 10:32:31 PM »
I agree with HarryC.  I'd make a counteroffer.  You don't know what would happen if you don't make an offer.
« Last Edit: August 02, 2017 11:21:33 PM by BellEbutton »

CleaningUp

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Re: Really need advice/input ASAP
« Reply #13 on: August 02, 2017 10:44:25 PM »
I'd make an offer of a mutual walk-away.

MTBeth

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Re: Really need advice/input ASAP
« Reply #14 on: August 03, 2017 01:05:43 AM »
You mentioned counter claims - can you be more specific? Midland never offers 85% discounts these days - even on debts that are out of SOL and reporting age.

My attorney handled this obviously, and I don't understand it all well enough to explain, but looking at the paperwork there are 2 counterclaims. The first is FDCPA violations (post charge off interest, misrepresenting debt, false and misleading statements on time barred suit etc, and the second is for violations of Montana's Consumer Protection Act.

 

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