What can I expect from a Debt Settlement Program?
Date: Mon, 11/05/2007 - 08:16
We have contacted Care One Credit and are considering enrolling in their debt settlement program. The other option is to declare bankruptcy, but since it's only our credit cards that we can't make the payments on we're not really wanting to go that route.
I have done a lot of research and know that not all of our creditors will accept the settlement offer, or will not allow us to make payments on the settlement. There is a chance that prior to us paying enough in the fund to pay a full settlement that the creditor will go ahead and sue us.
I've read in other places that by suing you that means the government can garnish your wages so you can pay them. This I'm not so worried about. Mainly because we're already making an attempt to pay back some of the debt, so I feel that will look favorable on us in the courts eyes.
What I'm worried about is I have read that in some states they can put a lien on your house. This I don't understand - the debt is unsecured, definately not secured by the house - so how can they take it? Does anyone know from personal experience if NC will allow them to put a lien on our house?
If you've enrolled in one of these programs and were sued, please let me know what your outcome was (lien, wage garnishment, etc), and what credit card company sued you. Also, if you enrolled but weren't sued that would nice to know too.
There are 10 cards - National City, Chase, Citi, Discover, Bank of American and Wachovia (some there are more than one account). Anyone with experience dealing with them can advise me how they were to deal with.
I think Care One only deals in debt consolidation. I used them
I think Care One only deals in debt consolidation. I used them for a while. If you are using them for debt consolidation, then the chances are slim to none that you will be sued. When the creditors accept their proposals for payment, then as long as you make the payments, then they will be getting paid, so they will most likely not have any reason to sue.
They have it on their website and I've talked to their counselor
They have it on their website and I've talked to their counselor about it. It is handled by a lawfirm called Ruthers & Associates. I've looked both up on the BBB and they have satisfactory record, with limited complaints.
Oh...I didn't realize they started offering debt settlement. Ha
Oh...I didn't realize they started offering debt settlement. Have you asked them what the chances are of being sued or what happens if you are sued?
The couselors I talked to said that they rarely sue. However, t
The couselors I talked to said that they rarely sue. However, they have a forum on their website and one woman on there has posted she's been sued twice now. She said they told her she wouldn't be sued initially, but then they told her to expect to be sued. This made me uneasy, however, there aren't many of those type posts on their board. I don't know all the details for that lady's situations either. They just told her to fax over the papers.
After I get the agreement emailed to us I am going to call and ask to speak directly to a lawyer and ask exactly what can I expect with getting sued. I have been thinking maybe I should just enter some of the cards into the settlement and try and do debt managment (interest rate reduction) on the ones that the lawyer knows won't work out a repayment plan through debt settlement.
It seems to me that if you're trying to work out a payment plan throught a settlement that them suing you is a waste of time & money on their part....that's just getting monthly payments through wage garnishment too, right? In theory that seems logical, but in reality I'm not sure.
if they know some of the cards won't work with settlement then c
if they know some of the cards won't work with settlement then consolidation may be a good alternative with those. also, i know the longer you drag a settlement program out, the more likely you will be sued. 5 years is way too long for a settlement program i think. there is no way a credit card company will wait 5 years in order to get some money before suing. 2 to 3 years is generally the best time frame to settle.
Personally debt settlement scares me! I've heard of lots of peo
Personally debt settlement scares me! I've heard of lots of people being either sued or losing loads of money from the settlement companies!! Now i'm not speaking of this co in particular since i do not know of them....
Can u maybe consolidate this bills?? More than likely it will lower ur payment and u will still pay back what u owe without as a high of chance of these cc's suing u!
Just a suggestion, have u spoken to someone from this site?? they offer very valuable information!
Good luck and sorry i can't help more,
Ang
Ang you did help macy, i think you're very right in suggesting c
Ang you did help macy, i think you're very right in suggesting consolidation not settlement. consolidation will lump your debt all together making it more manageable. now you are very perceptive macy knowing that some of your cards will not agree to the terms of your consolidation should you be eligible to go that way. However, it certainly is worth a shot as then you are showing you're trying to pay your debt back. making arrangements with the remaining cards that don't go into the consolidation agreement may help as well...Like Ang said please talk to a debt professional from this site and they can help you in this case more than we can at the present time. hang in there and let us know how you're doing
