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is it to late for a Debt Consolidation company?

Date: Tue, 09/08/2009 - 18:03

Submitted by anonymous
on Tue, 09/08/2009 - 18:03

Posts: 202330 Credits: [Donate]

Total Replies: 7


I have about 20k in unsecured debt. All of which has been sold to collection agencies. One of which is being handled by Suttell & Associates and has been filed in court (original debt was $2000 but it has reached $4000 with their fee's). I was going to file a chapter 13 bankruptcy. My credit is obviously already shot and I'm really not that concered with repairing it. I have talked with a Lawyer and filled out all the paper work I just have signed and paid for the final step for the official bankruptcy. The fee is about $700 to file (+ $175 in e-mail charges from the lawyer that really caught be off-guard since they were like 1 sentence e-mails asking if he recieved my info) and he says the bankruptcy will cost about $500/mo for 3yrs. Well, if its going to cost all this would I be better off just going with one of the Debt Consolidation companies. Would the cost be about the same but keep me from having the bankruptcy on my record? Also, would it be to late to add the Creditor that has taken steps in court against me. Lastly, if I added that creditor to the bankruptcy would those extra $2k in charges get dismissed.

I also have $6k in Student Loans that I did not include earlier. These are being wage garnished from my paychecks and Im fine leaving them that way for now.

I guess I'm just not seeing the benefits of a Bankruptcy if Im still paying over $18,000 over a 3yr period.

signed,
confused


Debt settlement will not stop creditors from suing you, but it is certainly worth the option in your case. You can either click on "Do It Yourself" above for steps on how to negotiate a settlement yourself, or Register with this forum for a referral to a company to assist you. I agree, BK 13 seems like a cruel joke in your case.

As far as the one that is going to court: be sure to file a Motion for Discovery (ask your court how). Make them prove they have a legal right to gouge you like that.


lrhall41

Submitted by Chrys Henderson on Tue, 09/08/2009 - 22:58

( Posts: 2538 | Credits: )


I don't think its too late for consolidating the loans. However, I'm not an expert on this matter and most importantly I don't possess the necessary information on your financial health to comment on. Hence, you are the best judge. But bankruptcy should be looked upon as the last resort by the debtor.

Quote:

I guess I'm just not seeing the benefits of a Bankruptcy if Im still paying over $18,000 over a 3yr period.


We all know that filing BK would involve cost, and sometimes it may cost more for ch-13 since it involves more paperwork. Now, if you can get rid of your debts by paying the same amount to a debt settlement company, may be that is the way for you to go, since it'd look less ugly on your CR.

Anyway, just hang tight someone more knowledgable would be around shortly.


lrhall41

Submitted by SC on Wed, 09/09/2009 - 00:28

( Posts: 3937 | Credits: )


debt management/counceling were they reduce rates and such is a good option if your not already late alot of companies wont take you once you are late, settlement is your next best option. its not the end of the world to have to go through a settlement process, but it is ugly just to prepare you. Worst case scenerio you may get sued, but there are worse things its not as bad as you think, its not like they are goin to throw you in debt jail! once you see that docket with pages upon pages of others just like you, you dont seem to quite feel so bad about it. good luck to you


lrhall41

Submitted by love_my_things on Wed, 09/09/2009 - 07:00

( Posts: 1434 | Credits: )


Quote:

Originally Posted by Chrys Henderson

As far as the one that is going to court: be sure to file a Motion for Discovery (ask your court how). Make them prove they have a legal right to gouge you like that.


even if I know it is my debt. In some of the papers they provided original documents and signatures from Capital One (the original creditor). Also, I was actualy making payments to the debt collector (Suttle & Associates) of $200/mo. I made 3 payments in 3 consecutive months but I wasnt recieving any statements or reciepts of my payments. I left a message on their phone and wrote them 4 letters over a period of a few months asking for reciept/statements on the payments I had made and future payments. I never recieved any record of them and so I ceased paying them. A few months later I recieved the court documents from someone at my door letting me know they are sueing me for lack of paying. Still to this day they provide no record of the $600 that I had paid nor have they mentioned that i was at one point cooperating with their payment plan. It has since doubled in court fee's and whatever else they charge.


lrhall41

Submitted by on Wed, 09/09/2009 - 20:41

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They don't have to send you statements, collectors almost never will.

Get a copy of the canceled checks (or money orders) to bring with you to the court. As you file your Motion for Discovery, you can request any particular information you need.

Court fees are awarded by the judge with the judgement, they cannot just arbitrarily add them.


lrhall41

Submitted by Chrys Henderson on Wed, 09/09/2009 - 20:58

( Posts: 2538 | Credits: )