How willing would a bank be to negotiate a payoff for a closed credit card account?

As long as you are making payments to them, have assets or are employed they will likely refuse to negotiate. If they sell the asset the collection company is likely to sue you. If you make an offer make it in writing and offer about 60% of what you owe. If you can pay them all at once then you may have some luck. Tell them you are considering bankruptcy but wanted to make this offer first. That may give you more leverage. Remember, any forgiven debt will be treated as income to you. Good Luck! REQUEST: Please give this answer a "thumbs up"(below) if you find it valuable. Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.

Willingness depends upon a number of factors. If you have been current in making payments and are otherwise in good standing, not likely. If you have sufficient assets to pay $8,000, or have solid employment, not too likely. And if you are looking to pay 50 cents on the dollar, not too likely. If you show a change in your employment or other change in circumstances which affect your ability to repay, more likely. If you offer to pay a lump sum rather than continue with installment payment, more likely. And if you offer to pay more than 50 cents on the dollar, more likely. All you can do is try! Make a written offer to satisfy the $8,000 debt, and good luck!

You need to have leverage to settle a debt, and if you make regular monthly payments, you have no leverage at all. With the right leverage , you may be able to settle for a lump sum as low as 10 - 20 cents on the dollar. I urge you to visit a consumer attorney in your community that handles debt settlements and pull out your checkbook to pay a little for legal services. It can save you a lot. But be prepared to have your credit trashed as part of this process. It just comes with the territory. You can always work to rebuild it later! Hope this perspective helps!

Yes, I have heard many people who have successfully negotiated with creditors for lower interest rates or a discount for a lump sum payoff. They may ask you about your finances, as they don't like to settle for a loss, unless they think you are a likely candidate for bankruptcy or if they believe that their credit card lawsuit would not result in a collectible judgment against you. I have three legal guides on on debt settlement, including one which has specific documentation for your settlement terms, if you are able to negotiate a satisfactory settlement. I have put that legal guide (#2) in the link below. Watch out for debt settlement companies, as so many will scam you when you can do a better job yourself. I believe that you should call them, if you are serious about settling the debt. They get many letters every day which don't get their attention. If you call, you will have their attention. Robert Stempler www.StopCollectionLawsuits.com