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jdec27

Hello, I am trying to find a repuatable company to beging a debt settlement program. I reside in New Jersey and I contacted Superior debt relief, but they explained that they do not do business with New Jersey residents because it is a non profit state. I just graduated college so during college I used my cards to get me by, which accumulated at 12000 dollar debt between 4 cards. I am begging to miss payments, and each time I miss the price skyrockets of the next minimal payment due. I desperatly need to begin a program ASAP so that my credit does not get destroyed. I contacted citi bank to try and work it out through them, but they explained there is no programs for my cards, which I feel is complete BS but what am I going to do? I also tried to contact Forgetadebt, but everytime I call all I get is a machine. I also filled out their application online, but no response yet. I did in fact find one company that deals with nj residence called Franklin Debt Relief. They are a memeber of the TASC but that is about all the information I could find on them. Could everyone please tell me if they know anything about this company, as well as some repuatable companies that do work with nj residence. Thank you very much in advance.

John

Posted: Tue Jul 01, 2008 12:29 pm Subject:

Due to the many bad settlement companies that ruined it for the few legit ones debt settlement is banned in NJ. If a settlement company got caught doing business in that state it is an automatic 50k fine to that company. I don`t believe Franklin debt relief is a law firm and thus could get in serious trouble if caught operating in that state. The only type of settlement company that can operate in that state would be a law firm with an attorney licensed to practice law in NJ. I am sure they are not the only company but the only one company that I know that can legally operate in that state is The Johnson Law Group located in Nevada. They are a network of attorneys and thus have a lawyer in NJ that can help you. I looked them up and they have a good reputation on the BBB. I am not endorsing them but just trying to help point you in the right direction. I hope this helps and please let us know how it works out. Very Happy

jdec27 · Posted: Tue Jul 01, 2008 1:22 pm Subject:

I am new to all this and trying to do my homework. How would a law firm help me in my case and what are the fees usually like with a law firm? Like I said, I just graudated college and my debt is from using my cards due to very low income while being a full time student. Now that I graduated, I want to pay this debt off as soon as possible because the interest rates are killing me and I am begging to miss monthly payments. So what am I looking at while using a law firm to settle my debt and what is the average fees for about 12000 in credit card debt the law firm charges?

Posted: Tue Jul 01, 2008 1:29 pm Subject:

The settlement law firm would be able to settle your debts for around 40-50% of the balance.Most settlement companies or settlement law firms usually charge around 15 % of the total debt enrolled. estimated debt $12,000 x .15 = around $1,800 in fees.

jdec27 · Posted: Tue Jul 01, 2008 1:33 pm Subject:

I read up on the BBB about them and it stated they have a satisfactory rating, but did not give a letter grade like I have seen people saying on this site. They also had 16 complaints over the past 36 months with all but 1 being resovled. Can you give me a little insight on how working with a law firm works, I understood that through a company like debt soulutions, they negotiate how much of my debt will be paid and how much per month? Thats how I took it anyway, how would a law firm go about helping me. Again thank you very much for this information I appriciate it when knowledgable people help others out. My profession is physiology lol so if anyone needs some advice on that go ahead and ask because when it comes to debts im lost.

Posted: Tue Jul 01, 2008 1:40 pm Subject:

Its pretty much the same process whether you chose a settlement company or law firm. I suggest you use a law firm because that is your only legal option in NJ. Simply explained, the COMPANY (or LAW FIRM) will work with you to establish a savings program that will be used to pay off your debts over a period of two to three years. You will have one monthly payment and the amount you will pay back is typically between 40% and 50% of the amount owed when you joined the program. The advantage of having a lawyer is that once the accounts go to collections the law firm would send letters to the 3rd party collectors. Under the FDCPA If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money.

jdec27 · Posted: Tue Jul 01, 2008 5:54 pm Subject:

Thank you so much you were a real help. How will this affect my credit? Will it decrease or increase it? I had a credit of 720 or so prior to this disaster that happend where I started not being able to make the monthly payments.

Posted: Tue Jul 01, 2008 6:46 pm Subject:

debt settlement is a hardship program for people who are overextended and are either already behind or about to be. Debt settlement hurts your credit because the bills have to eventually be at least 120 + days late for the creditors to be willing to settle. If you are a good candidate for a settlement program the fact that settlement hurts your score is irrelevant because your credit is already affected or about to be. Debt settlement is designed to get you out of debt fast so you will be in a prime position to reestablish your credit.

Guest · Posted: Tue Jul 01, 2008 8:54 pm Subject:

Can one set up a DMP in New Jersey and service clients from other states?

Posted: Tue Jul 01, 2008 9:17 pm Subject:

A DMP or debt management Plan is completely different from a settlement program.

Can one set up a DMP in New Jersey and service clients from other states? Yes as long as the credit counseling company is licensed in to service the state that the client lives in.

Guest · Posted: Tue Jul 01, 2008 9:30 pm Subject:

One more question, a debt negotiation company or agency that takes no fees up front only a performance based commission, is it considered a DMP or debt settlement program?

Would such a company be able to operate out of NJ and would it need to be licensed in those other states?

Thanks for your time!

Posted: Tue Jul 01, 2008 9:41 pm Subject:

Guest · Posted: Tue Jul 01, 2008 9:50 pm Subject:

Thanks Mobile!

jdec27 · Posted: Wed Jul 02, 2008 8:25 am Subject:

once finished with a debt settlement program, how hard is it to re establish your credit? prior to missing a month of payments I had good credit, in the low 700's. I was late a few times but I always made the payments. I missed one month and boom the minimum payment doubled on every card and now its impossible to make. so how fast does your credit go back up after the progra is over?