93k in debt settled for 23k....
Date: Fri, 02/22/2008 - 00:26
My negotiator listened to my situation, asked a few questions and his objective was clearly getting me out of debt as soon as possible and even threw out there, the possiblity of being completely finished with the program in 2 months. 93k in debt and finished in 2 months. At the time, I was already 4 months past due so my accounts were right at charge off. At first I thought he was insane telling me I would be debt free in 2 months. I only had 12k put together and I was able to borrow another 7k from family. Still with only 19k what good would that have done me with 93k in debt?
Well, I have in hand letters from all of my creditors 4 accounts. 45k with Bank of America settled for $6750 and 48k with Chase settled for $16800.00 I used my 19k as a down payment and I have 6 months to pay off 4k which is the balance on my settlements.
Every other company I spoke to quoted me programs of 36-50 months. Not one of them mentioned thwe risks of being sued, the advantages of settlements before collections, my credit consequences, they all just said how well the creditors work with them and how they will wait 4 or 5 years to be paid which is pure lies. I'm not sure if I could post the name of the company I used but if this site is truly here to help people, then they need his information. I used debtxpert or sifxpert...James Lombardo. James gave me a quote of 27k to settle all of my debts and actually, did 4k better than expected. In total fees included, I am paying about 35%.
James is extremely sharp and knows exactly how things will go with your accounts. Everything he said from the beginning including different scenarios, the good the bad all mirrored what I have read and believe to be facts on the net about credit and how banks work.
One major benefit is that none of my accounts charged off. So, all I will have is a "settled" remark on my reports. When I first began, I had a 572 credit score. Since 2 accounts settled last month, my credit reports have adjusted already and my scores jumped to a 654.
I thank this forum and all the people who recommend and warn others about companies.
hi never thought! A Big Congratulations to you for this happy e
hi never thought!
A Big Congratulations to you for this happy ending. your experience will surely boost the confidence of many others who are thinking of debt settlement. there are a lot of people who come to this forum who say they are apprehensive of enrolling in a debt settlement program as they are not sure of the consequences. your solution will really show them a ray of hope. :D
Since this is a guest - I wonder if it could be James Lombardo h
Since this is a guest - I wonder if it could be James Lombardo himself?
Keep in mind that you will more than likely receive 1099's to fi
Keep in mind that you will more than likely receive 1099's to file with your taxes next year on the amount settled. Be prepared as that will be another $70K in taxable income.
Out of pocket expenses?
If you don't mind me asking, what kind of fees did you have to pay this company? Did you pay them up front or was their fee included in the amount you are paying back? You are very fortunate. I've never heard of a debt being reduced that much. Congrats!
Carold I mentioned in my post that I paid 35% total. I paid a r
Carold I mentioned in my post that I paid 35% total. I paid a retainer of $500.00 and I will not have to pay any fees until after the accounts are paid off. I will have to pay 20% of the amount I saved less the $500.00 retainer. Any other company I spoke to wanted a set up fee of $5500.00 before they were to even speak to my creditors and none offered a guarantee.
I am the original poster and I am a woman. I happen to live within a mile of James. I found him on yahoo local directory under debtxpert after reading about him here under success stories. When I enrolled, we met in person. He has a personzalized plate with his company name on his car.
How long did he wait. Did he wait 5 month past due before start
How long did he wait. Did he wait 5 month past due before start talking to CC companies? I guess timing is every thing in good negotiation.
Scottinred
Are your accounts settled? Did you have 23k in cash and have you
Are your accounts settled? Did you have 23k in cash and have you seen any of the sif letters? Your credit score would not go up in 2 months because you have not established any new payment history. Plus you have 70k in income taxes to pay for assuming you make around $50k a year that will jump you to the 28% tax bracket meaning you will have to pay almost $33,000 in taxes alone because of your new income bracket. 50k means you would normally have about $5k taken in taxes,
Check my math to make sure I am doing it correctly
$93k after interest and penalties probably around $80k before for 6 months were of interest and fees before any creditor will negotiate. So:
93k x 35% in total you stated above is $32,550
Another 28k in taxes not including any tax penalties since you are required to pay 90% of your taxes before the end of the yea is going to total $60,000.
From 80k in original debt to $60,000 for something you could do on your own and he made $9,000 off it you should to talk to a tax attorney otherwise you are going to get screwed. If you have $23k cash to pay your bills why didnt you just pay them?
These were my thoughts exactly. The settlement company is makin
These were my thoughts exactly. The settlement company is making out like a bandit on this one when the OP could have much of the settling himself.
93k settled for 23k
I love to read success stories. I really do! The only thing that gets me suspicious is when someone posts like that and chooses to do it as a guest. It makes me wonder WHO is doing the posting. It could really be an actual person and if it is, it is wonderful to see that kind of settlement being done. Congrats!
The only thing I really don't agree with is the comment by "billman" and that was:
Quote:
If you have $23k cash to pay your bills why didnt you just pay them? |
Me being 96k in credit card debt alone shows me why this person would settle for 23k. First of all, everyone gets in debt for their own reasons. Do you know how much the minimums are on a debt load like this even at a decent rate? I was paying at least 2200 a month. She would go through that 23k in just minimums only within a year. That will get someone nowhere fast. It is hard.
As far as the tax implications, we don't know how much this person makes or what income bracket they are in. It is just my opinion but usually someone that doesn't have that much money (like me) wont have that money easily ready for settlements. This person could have used up all her savings. We don't know. I am no tax professional but there is such thing as being insolvent which would help this person out as far as taxes owed if in fact they can prove it to the IRS.
I do think this person could have done debt settlement on her own and saved some money. That is what I would have done and not paid a DS company but she did get awesome results. There is no way to know how it would have turned out if she did it on her own. Maybe she wouldn't have gotten the same results or maybe she could have gotten better results or gotten sued. Who knows.
I just had to comment on this because I do think debt settlement is a great option for people who have a large amount of debt. I don't want someone who is exploring their options to see this topic and not do it because all the facts are not laid out correctly.
I agree that the post looks like something James Lombardo would
I agree that the post looks like something James Lombardo would do to boost his business. I have read a couple of feedbacks from supposed customers and the success they had with him that sound an awful lot like a self-bragging note vs. a true comment from a satisfied customer. I did business with him and I am not one of the satisfied ones - I ended up having to file bankruptcy after he assured me he could clean up my credit mess. His excuse was he had family issues - and if that is so, I am sorry but you need to have your business set up to continue on in your absence and not leave people hung out to dry.
I never enrolled with this forum before as I was just lurking.
I never enrolled with this forum before as I was just lurking. I think part of the reason for me not enrolling originally was I was afraid I would look like a fool. I did not enroll when I posted my success story only because I did not want the harassing calls from debt companies again like i once had by filling out a few inquiries. Sorry to cause so much skepticism.
That said, I understand the tax impliacations and I am prepared for them since I am not working and have no property in my name. I am indeed insolvent and have had my uncle who is a cpa thoroughly go over the contract I signed and assess my tax impliacations. The worst that can happen is an audit but I have everything in order.
My debt is mine but at one time I had 2 incomes to pay it but that was while I was in a long term relationship that failed and he is no longer capable of working. The 23k I had to pay was from contributions from the ex's family myself and my family. It made no sense to use the money for payments only for settlement.
I decided to use a company after attempting to settle on my own. Let me tell you, when you are in the moment, they drill you for information to evaluate your situation so they are painting themselves a picture and at the same time, they are seriously questioning your honesty.
My uncle being a cpa asked me why I never do my own taxes when I asked him if I should consider hiring a negotiator. His next question was have I ever changed the oil in my own car. It was clear that I was stepping into a serious situation with no experience and hoping for the best. I lasted 2 phone calls and realized that just because I worked at a lawfirm for 5 years, does not mean I can convince banks to forgive close to 75k in debt.
What really sold me on james was his fees. His fees make absolute sense. Of course, I am sure this is not always the case to see such remarkably low settlements and including fees I am paying 35%. Now, I know for certain, I would not have been able to settle for 35% in the end so as far as I am concerned, he paid for himself. I lost no money paying him if anything, I saved an extra 5-10k by using him. I have read all over the internet how people on their own settle for 45-55%. The owner of Credit info center who banned sifxpert from her forum said herself that most banks will settle for 50% and she never heard of any account settling for less than 40%. I have in writing 15% on 2 accounts. There is a difference trust me. I had a rep with one of my banks laugh when I said I maybe able to do half.
As of now, all of my accounts are settled. I still have some payments on some but I have written agreements on each of my accounts and my uncle insisted I set up the payments for the settlements to have piece of mind that my money was going to the right place. Each bank confirmed the terms of the settlement with me after the negotiating was finalized.
I think that covers everyones questions. I understand how it could appear to be someone else posting to boost their business and or ego however; if you search the net you will find so many posts just like the one I wrote from so many different people that it would be impossible for one person to make up so many stories and besides, I have communicated with others on several different forums who know james. When we met, he mentioned 2 friends. He is friends with the owner of mahalo who was the CEO of Weblogs and former Vice President of AOL. My best friends cousin is a nurse at UCLA Med Center and works with his best friend of 25 years who is a trauma surgeon in the ER. I did my background check on him and he is legit. So I'm with everyone and their suspicion but its a very small world. If anyone has other questions you can contact me at raznboyz at hot mail.
Why would someone go to such lengths to explain their situation
Why would someone go to such lengths to explain their situation and still put more plugs in for James?