debt settlement -scared

What state do you live in and how fast of a program you you enroll into ?

i live in pa and my settlement company said anywhere from 36 to 48 months

Okay first of all relax....you are not alone! I know how scary it is to think of being sued...trust me. My AmEx account was sent to a collection agency before it even hit the 120 past due mark...and this ca was prepared to sue me. So, that account made it's way to the "front of the line" as far as importance goes. I did end up settling at 55%.

I am surprised that your BofA account was turned over to a collection agency so soon. BofA is usually not very aggressive. Have they started talking settlement yet? Chase should be okay to settle with. Recently I have been hearing that 35% is the magic number. I am about to settle with them in the next week or two, so I will have to report back on that one.

As painful as this may sound, I think that you need to start talking to your creditors. Constantly not answering the phone and limiting communication with them will only piss them off, and in turn they will become more aggressive.

Can I ask what the projected amount of time is that your debt settlement company estimates you will have in order to settle all of your accounts?

Thats great news. PA is a non-garnishment state which basically means that even if you get sued you can't have your wages garnished. You will of course still get harassing calls but your not likely to have a creditor sue you any time soon because of PA's debtor friendly laws. Keep in mind , I am not saying they will never sue you . Just that its the usually the last option they will want to explore.

Okay manson4439 I just read your post that your program is set up for 36-48 months. I don't want to freak you out but that is WAY too long!!!!! Creditors simply won't wait that long to be paid. You do need to prepare yourself for the idea that litigation is a definite possibility if you stay with that long of a program. Did you choose that program because the monthly payments were so reasonable or could you not afford a shorter plan? If the company you are working with told you that only 1% of people in debt settlement plans ever get sued...well they lied! Keep in mind though that being sued, although not pleasant, is not the end of the world. You will just be forced into a payment arrangement. The bad part is that you could also have to pay all the court costs/attorney fees.

Do you have anything to fall back on? Can you save more aggressively?

the settlement company said 36 to 48 months to be debt free, thanks for the info on pa be debtor friendly , thats a relief. i do talk to my creditors when i can and usually they are ok, but i was also curious why the i.c. systems collections stopped calling, that is scary. i just wish i could get more money into my account faster for settlements but i'm strapped. this site is great, i will follow it all throughtout my ordeal and let all you guys how it turns out.

no, nothing to fall back on and the lenght of the program was all i could afford. should i just stick it out or look into bankrupcy?, that is really the last thing i wanted

You can always file bankruptcy...even at the last minute. So, I would not throw in the towel yet!

If the reason you can't afford to save more aggressively is because the debt settlement company that you are using is charging you a big chunk of your savings, I would seriously consider another option. Did you sign a contract with your debt settlement company binding you to their fees?

49 dollars a month goes for fees and the 710 goes into my account. i don't think that is that bad . is it?

No, that isn't bad at all. The bad part is that 48 months is a long time for a program. If there is ANY way you can increase the amount you save... do it. I had to take a really hard look at what was truly a necessity in my life. My family and I no longer eat out, (not even take-out) I cancelled cable, changed my cell phone plan, cut my groceries drastically. For a while I was also looking for a second night job, but I am in Michigan and they are hard to come by!

Don't give up yet, hang in there and just try to save as much as you possibly can. If one of you creditors offers you a really great hardship program....and IF the payment will not greatly impact your ability to save, I would talk to your debt settlement company about taking such an offer. For me, it was a life saver. I have 2 Discover accounts that I ended up putting into a hardship plan. The payments on those two accounts isn't even 50% of what the minimum payments used to be. If I had not taken those hardship plans Discover would have sued me for sure. Maybe a similar situation with one or two of your creditors would not only lighten your stress load but also buy you some time to save funds for settling.

I have been in a debt settlement program for a little over a year now, and six of nine accounts have been settled. I have been sued three times, the first one coming after nine months. It came with an alternative settlement offer, which I took. The other two times, I simply called the attorneys representing the plaintiffs on the summons, to start the ball rolling, then let my settlement company negotiate settlements before the court date. I did go to court both times, just be be sure the case was dismissed. But no judgements were entered against me or anything, because settlement agreements were reached beforehand.

on the hardship program you talk about do they offer it to you or does my settlement company offer it to the credit card company? i read my info on my settlement companies site and it says the credit card company makes me the offer, but when i talk to the credit card company they tell me my program has not made them an offer yet, i know i don't have enough in my account to make offers yet but if the credit card companies make an offer to my settlemnt company and i don't have enough in my account will i even hear the offer? i'm confused

My company generally keeps me updated on who they've been negotiating with. I fax them all the collection letters I get. They won't call and make offers until there is something in the account to offer, because some creditors want lump sums. BofA contacted and negotiated with my settlement company right away, and agreed to six monthly payments. If the offer is really good, and there is enough in my account (or the number of months to pay is reasonable), my company will send me a paper to sign and fax back that an agreement for a certain amount has been reached and that the settlement is to be paid. In the instance where I called the attorneys on the summons and was the one who got the ball rolling, I then got in touch with my settlement company and said to them "let's settle this so I don't have to go to court, please deal with them NOW!" Some of my accounts were settled before I even had much contact with the creditors at all. Every creditor is different. There's really no set pattern. Conceivably, you might have enough to settle with Chase shortly. I settled a 10,000 account with them at 20%. Can't promise you'll get that good of a deal too, but you're getting within range.

As far as I know debt settlement can be a good option for getting out of debt. You may go through the following page for more information: -

Debt settlement - How to get rid of debt without bankruptcy

You may settle your debt yourself or through a debt settlement company in your state. If you go for a settlement company then you should go through the points mentioned in the following page: -
How to select a good best settlement company?

I dont know why i wont stay logged in but here we go.

I understand our paid on this settlement thing. Look i have tons of ways to save extra cash if you wanna check out my blog. The most stupid simple things really add up dont disregaurd it because it may be a dollar here or there or that you think you need it. There are so many ways to save even more money. I find a new way still. Im getting more and more frugal as time goes on.

I went through a settlement company and it was a 24 month program and most of my debts were settled by the end of the first year. no settlements till about i believe the 7-8 month mark. by month 12 i only had i think 3 left. I had alot settle in december i guess they wanted it off thier books for a new year.

I did get sued by 1 my smallest accout, citibank(grrrrrr) 1,000 debt. at the end of the 2 year mark. But trust me its not as bad as you think. usually the judges frown upon this because you are attempting to do something and they are not helping. they look at it like they have more important issues to deal with. sort of waisting thier time. Its not like you are not doing anything.

settlement takes time and hang in there it will all be ok!

thanks "love my things" i am gonna try to stick it out, i guess after i get one out of the way i will feel alot better. i will keep you posted, calls have really tapered off lately. i guess the cease and dissist letters my debt settlement comany sent are working a little

that is probably the case. remember that you must be patient debt settlement takes time and alot of times we are impatent and want it done yesterday i know. I think i was a royal pain in thier butt. but they were always patient with me. Have faith in the system it will work i promise!

what

We were told by our ds company to limit our communication with the credit cards. Should we be talking with them to let them know what's up? We were never delinquent but have had to let the accounts go, hence the phone calls. I'm confused.