Debt Settlement Companies

Thank you for your info, guest. It has been said in here, be sure to check out any company you ae considering with the BBB and others. I have heard of both good and bad companies, it's buyer beware!..Karen

Yes, Bossy, it has been said to check with BBB, and I did that. Unfortunately, this company had no complaints. I have also learned that many of these companies change their name every 12 to 18 months or disappear completely. I just wanted others to know that bankruptcy is an option that isn't the end of the world.

Just wanted others to know that bankruptcy is a very decent option, and isn't the end of the world like "society" sometimes wants you to believe.

speaker -

I appreciate your viewpoint on bankruptcy. While it is a viable option, I would much rather see someone investigate a debt counselor's options first. I realize you had a bad experience with yours, and for that, I'm sorry, but I really think someone should look very carefully at the effects filing bankruptcy will have on their life before thinking it's a "very decent option".

Just my opinon. I hope things are going well for you now.

I disagree because sometimes a person has to do just what is right for them at that moment. When I filed bankruptcy, I was at the end of my rope. I was mentally and emotionally spent. It WAS the best option for me. This is not to say that one shouldn't investigate other options, but I just wanted to say that sometimes it can't be done.

Lorri - I definitely see your point, I was just trying to make sure that anyone reading this thread understood that not all debt counselors are bad, and that bankruptcy needs to be the last resort, due to the negative effect it has on your life, and the length of time that it affects you.

I've been through it myself, so I definitely understand where you're coming from. It's not a fun thing to go through, but if it's the only option, then you do what you have to do.

Just another note on SueBEEHoney70's last remark about how "bankruptcy has a negative effect on your life, and the length of time it affects you." I somewhat disagree with the negative effect comment. How much more of a negative effect does bankruptcy have versus having a bunch of charged off debts that end up going unpaid or "Settled" or being in credit couseling? The answer is they ALL go on your report, and they ALL stay for 7 to 10 years. Your credit score can begin to be rebuilt almost immediately after you file, and from the research I have done, most can get a mortgage with-in three years of filing chapter 13 and 5 years of filing chapter 7. doesn't a "debt settlement" program last a minimum of 36 months, and with NO GUARANTEES that all your debts will be settled. Your comment is exactly what i meant by "society" making people who file bankruptcy as being failures or that it is the worst possible scenario to go into. At least I KNOW that in 36 months, my debts are gone forever, no matter how much money they end up getting, and there will be no garnishments or threats or harrassament. That absolutely CAN NOT be said about any debt settlement companies, no matter what they promise or advertise. You read the fine print, and they all say that they can't guarantee you won't be sued.

Allow me to say a few words on the matter.

First of all, debt settlement try to settle your accts for less than 50%. Yes, they tell you that they do not guarantee you will not be sued, however a good settlement company had legal advisors working for them that do everything in their power to prevent involving the courts, which might I add are very sucessful.

I have been in my program for 15 months and they have not changed their name yet or disappeared for that matter.

Bankruptcy is not the end of the world, as you kindly put it. My parents bankrupted in the year 2000 and they more than begged me to not do the same and to go through a settlement company. Sure, they reestablished some of their credit at VERY HIGH INTEREST RATES, and they just recently bought a new home. However, being quickly removed of their financial obligations did nothing to help them live without credit.

With a Debt settlement program, you learn to live without credit, so when you are out of the program you don't go out and charge up ten more credit cards of luxury. For the first 6 months, I fell like I was
**** in the stores without my card in my purse!!! I would dig for it before realizing I was paying with cash!

Sure our credit report is shot for the time were in the program, but it is determined near as bad as when looked at if had filed bankruptcy. Why? I am not really sure why. I believe some companies consider bankruptcy the easy way out.

Either way.....Good luck.

[color=Red]****Adult term removed - Jason[/color]

In response to Linda's posting.

The settlement company I worked with did have legal advisors and an attorney in each state that they have clients in. What finally turned me off was when I received a letter from the National Arbitration Forum, that I immediately faxed to my settlement company, they responded with three choices that i had. The first was do nothing, the second was hire an attorney to represent me or I could use their's at a "reduced" rate of $85.00 per hour, and the third was represent myself. Ok, what was I paying my settlement company for then? Seriously, I had payed them over $1200.00 in JUST their fee's over a 10 month period. They told me when I entered the plan that they would keep the creditors at bay until I had enough to "settle". When I questioned them on how I was supposed to be able to settle anything when I had only been in for 10 months and 1200.00 of the almost 3000.00 I had paid them was going to "fees'? Their response was, and I quote form the e-mail they sent, "we are actively searching for a change in setllement policies, due to the ever increasing agressiveness of most creditors and their 3rd party collectors." Well thanks, that does me a lot of good.

I hope you are doing successful in yours. Fifteen months in, so you are almost half way there. I am curious, however, has anything been settled, or are you still building up funds?

One last thing, only Chapter 7 bankruptcy is as you put it, "quickly removed of their financial obligations." Chapter 13, which is what I filed, is a reapyment plan which you pay through the bankruptcy court. It is 36 months long. You pay the court for 36 months, the court pays your creditors and when the 36 months are up, you are completely done. Whether your creditors get as little as 15% or as much as 100% you are finished. I again encourage anyone reading this, whether they are just thinking about doing a debt settlement company, or are currently in one to call a REPUTABLE bankruptcy attorney and get a free consultation on your situation.

Well, it looks as if Chapter 13 was your best option. It sounds like to me you were hooked up with a shady debt settlement company. I am glad that all is going to turn out on your behalf.

Yes, I have been in my program 15 months and I am have settled one acct of 4600.00 for 1700.00, which is less than 40%. On a Sears account, which is one of the most aggressive creditors that there are. I have 6 more months of fees of 176.00 out of my 400.00 payment which leaves 224.00 for my reserves until the full 400.00 kicks in for my reserves.

When you file bankruptcy 13, you don't know what your payment will be to the court for your creditors @ 36 months. Actually without the candy coating on the wrapper, your basically settling with the creditors at even a lesser amount than what debt settlement companies settle for. THIS IS WHY debt settlement is looked at differently than bankruptcy. I am not slamming bankruptcy, I just feel as Sue has mentioned that bankruptcy should be a last resort. As, in your case, it was your last resort.

About the Arbitration letters, I have several of those I received in July of 06. I sent them to my debt settlement company. Yes, they threatened to take me to court, however that is illegal to do IF THEY HAVE NO INTENTIONS OF DOING IT. I did nothing, not a phone call or anything. It has been nearly 6 months later and not another word from them.

Also, they have pulled my assets which is NADDA.
I am sure they see by now I owe 49,000.00 in Student loans. I am sure they know my income is nearly at State poverty level, so they are not going to get blood from a turnip. I have nothing for them to try to take.....perhaps this and GOD is what has prevented court involvement so far.

to linda....i have about 40,000 in debt. i am considering debt settlement, however very oblivious to it all. at this point if i do debt settlement, i want to find the best company out there. how did you do your research into choosing your debt settler, and who is it?

Speakerfromexperience - I'm currently looking into this as an option. What company were you using?

Settlement isn't creditor protection, and no one should be selling anyone on the notion that it is!! Settlement is a highly aggressive unsecured debt elimination plan, and if you choose to do it, you can be sued by a creditor, but... the chance of you being sued by a creditor is only about 3%.

It also makes sense that about 3% of all people who choose settlement over bankruptcy, are going to be upset when they get sued, and are going to tell the next people they meet not to do it, while 97% of the people who don't get sued aren't going to be upset and aren't going to tell anyone anything... because who likes to talk about personal debt if they don't have to??

Chapter 13 Bankruptcy can work for people, as can Chapter 7, and as can debt settlement. It depends on your hardship situation, what your financial and home ownership goals are in the near future, as well as your personal feelings about claiming bankruptcy and ability to deal with certain kinds of situations.

Personally, I can ignore a creditor calls easily, and I don't like the feeling of failure the word "bankruptcy" brings to me, settlement works as an option for me because I realize that being taken out of the workforce by an unexpected accident isn't my fault, and I personally have no problem ignoring creditor calls, the potential for suit isn't a big issue either for me personally, I have a plan, can get on with my life, without 10 years of notation "bankruptcy" on my credit report or hanging like a big flashing "failure" sign in the back of my head.

I am currently getting harrassing calls from a collector on an old Sears account. I want to settle, but the collector's harrassment makes it almost impossible to communicate. Has anyone else dealt with someone collecting from an old Sears account? ANY suggestions will be welcome.

OK, I've been reading but still, I haven't a clue wether to do debt settlement or bankruptcy. If the equity line is maxed out and property values have fallen, I'm assuming consolidation is not an option. I never thought to "settle" my debts and only pay part of them but I need some power to drastically reduce interest rates on the credit cards so I can get on top of them. Any ideas?

ALOT of states will tell ya, if you file for BK, it'son your Credit for ONLY 7-10 years. However... a friend of mine, who lives in PA (and I do too) filed for BK, back in 1998. The BK is STILL on her credit. She tried to 'dispute' it..trying to explain it's been on there for MORE than 7 years. Her response, from the CB was the BK can be on the credit "indifinitly". What the heck does that mean? I thought it was on there for ONLY a certain amount of time.