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I Am Unable to Make All My Bank of America Debt Settlement Payments

“Dear Steve,

I entered a debt settlement a couple months back that allows for 4 payments, each increasing incrementally. I am having trouble making the full 3rd payment. Does anyone know what will happen if I only make a partial payment? The settlement terms letter indicated any inability to make a payment would result in BoA rescinding the settlement and going after the entire amount. Does anyone have any experience in this area? Will BoA work with me if I split the 3rd month payment in two, making one on the due date and the other half within 10 days of the first?”

I think you’ve answered your own question. The agreement seems fairly clear.

Once your settlement agreement fails with Bank of America they might be willing to talk about an entirely new offer based on the current balance remaining but in my experience once a deal has failed they don’t go back and revive it latter under the original terms.

You should absolutely not alter the payment plan without the written approval of Bank of America. Otherwise you risk all the payments you’ve made on this settlement under the mutually agreed upon plan.

How short is the payment? If you get over this hurdle are you going to be able to make the last payment?

Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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