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Spartacus32

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Partial pay to collections?
I am close to filing for Chapter 7 bankruptcy. I have a tax lien on my cc report from 2002 $1200 also some medical collections is it against the law to tell the collection people I want to pay the money I owe but only can afford $300 of the $1200 state tax lien or $100 of the $600 medical collection bill?
Can I use the bankruptcy as a leverage tool?
I live in TN if that helps

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Are tax liens even dischargeable in BK?, paid/settled collection would still remain on your credit reports until the 7 1/2 years reportable date runs out anyways. I am don't know what your try to accomplish but yes, you can negotiate with creditors/collectors even the "pay for delete" deal and many people do. I would find out what is the Statute Of Limitations of being sued in your State for those debts in collections first, if its still with-in the SOL? You would have much less leverage than its out of SOL, Tax liens would have much longer SOL or might not even have SOL until it's paid. As always, whenever dealing with collection agency? Do it in writing. Don't enter payment arrangements and or "promise" you will pay UNLESS you are fully capable and willing to fulfilling it, if you can't or won't later on? That might restart the clock on SOL.

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Spartacus32

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Thanks JohnnyRain for you advice. Yes I am trying to get the leaverage to do the pay for delete deal since I cannot pay the whole amounts owed on the debts.

When you talk about suing what do you mean by that me suing them or vice versa ? If its in collections then havent they already done that?

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JohnnyRain127

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When comes to pay for delete deals, you would most likely need to pay full amount and chances of collection agencies agreeing to it are smaller than tiniest bit, it's not because they don't want your money, it's against credit bureaus' police and the agreements between them. Worth the try tho, all they can say is no.

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The Statute Of Limitations is the length of time your creditor/debt collectors can sue you for the debt you owe. Once they got a judgement against you? then they have more forcible means to recouping their money, like garnish your wages, levy your bank accounts and put liens on your properties.

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Collection agencies/junk debt buyers, would normally buy debt accounts in bulks, often in thousands at a time, they might not have capitals to sue or don't want to spend extra money if they don't have good chance to recover the cost, like you are in different States, they can't find much infos on you, can't get hold of you, you have no incomes, properties or even bank accounts, or simply they don't have time/man power to go thru every single debt account they brought. But now you come knocking on their door and asking them for a "favor"? you just paint a big red target on yourself.

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You can attempt to "settle" on the accounts if you wish, companies settle for less all the time, I am not sure if it would work on the tax lien though. You can't tell me that you would really consider bankruptcy over two debts totaling $1800. But for leverage, tell them you are considering it if you wish.

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Spartacus32

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Enter YourTrying to understand ,

Thanks for you advice and now its far more then $1800 I was just using those as examples. Yes that is what I am wanting to do is use the Chapt 7 as leverage,

Would you call them or do it in writing?

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Tax liens will remain attached to your property, even with a bankruptcy. 
Derogatory accounts, even a lot of them, won't do the damage to your credit that a bankruptcy will. 

If you think you may be sued for any of the debts, or if you own your own home and are in danger of foreclosure, then yeah, bankruptcy can help you get out of a horrible situation. A bunch of little scattered debts though? I wouldn't file over that.

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