Depressed over debt

jewdee,
i would get a receipt from the debt settlement company showing what payments have been made...It sounds like the ca wants more money and is trying to strong arm you. have you told the ca that you are in debt settlement? For the record, yes they can get a judgement to garnish your wages, but it is extremely difficult for them to go after your bank account. That's usually only for much bigger debts or child support/irs issues.

Hi jewdee1

Have you checked with your consultant and know the latest status of the account for which he is negotiating. It takes times in the settlement program for the creditor to accept your proposal especially for bigger ones. Your consultant might be able to give you the outcome of this negotiation by this time.

If you have some money, you should start paying off the smaller accounts so that the balance doesn't keep increasing. The credit card companies can take actions if they are not getting the money towards the accounts. But if you show a partial payment, the account will remain current. In case, the matter is taken to the court, the judge will find that you are trying to make the payments. But because of your financial problems, you are not able to pay the creditors with the required amount. Most of the credit companies are easier to deal with if you approach them first. Explain your situation and work out a payment plan before they intend to take the matter to the court.

No payments are made to the creditors--the debt settlement company is telling me that they will negotiate and send ONLY ONE PAYMENT and that is the pay off amount.

I do not pay them anything monthly at all and neither does the settlement company. They are not a consolidation company.

I have been instructed to NOT TALK or DISCUSS anything with the creditors, therefore I can not make arrangements or send partial payments. I have been told that if I paid them something on the side, then that cancels what they are working to help me with a settlement.

I talked to a bankrupt lawyer just now and he suggests of COURSE to come on in and file...he would like to have the 1000.00 I have in my settlement reserves.

BUT, everyone keeps telling me that bankruptcy is far worse than settlement and I would be screwed forever if I bankrupted and in only a short time my settlements would settle and it won't be that bad.

Hi ljclark1

Bankruptcy, settlement, consolidation are different management programs through which you become debt free. Your financial situation will determine the program which will be suitable for you.

If you are not concerned about your credit at present and want to become debt free, bankruptcy is an option. But if you want your credit to be safe, you will have to prefer consolidation program. Settlement program is considered on those situations when you are unable to make the consolidation payments and don't want to file a bankruptcy.

A bankruptcy will stay in the file for a period of ten years. A settlement program appears for seven years and a consolidation for as long as you are enrolled in the plan. No matter, the type of program you choose, your previous payment history is very important in front of your new lenders. They will review it keenly before extending new credit to you. If you file bankruptcy and show a good payment history in the future, the lenders won't give much weight to filing bankruptcy.

Just wondering jclark, what settlement company did you go through? The one I'm going with basically told me the same thing...not to talk to the creditors. I'm concerned that when I DO go into default (they tell me it will take 4 months before they start negotiating with my creditors) they will start calling our place of employment...and we will end up fired because no personal calls are allowed. argh!! Is it possible for a person to negotiate settlements thru CC companies themselves as well as the programs do?

Thanks Gretchin...

One attorney I spoke with told me that very seldom does he see credit cards garnish checks and get garnishments.

This old, I MEAN OLD bat of an attorney I talked to today had me convinced the best route was bankruptcy and that he could take my money and put it to better use than the settlement people.

I chose debt settlement because of what you said: it stays on for seven years and not ten. PLUS, I have been told that if I show great future payments that it will be not hold a great burden to the fact that I settled.

My main fear is the time between now and the remaining 28 months left in the program. Are the odds high that they will come after my garnishment and bank acct? or chances are they won't. This lawyer I talked to today says: a judge don't give a rats a@@ if I am in a program or not--if I owe it, then I OWE IT. He was blunt about it.

Is this creditor one included in your program? Didn't they agree to the settlement amount, and payment agreement? Why would they be going after you? I'm confused.

I just spoke with a young yuppie attorney and he was very nice...He told me that if I showed the judge all my paperwork that she would respect the fact I was trying and it would be a dead end judgement. He also said that any credit card company that sues is stupid, they won't receive a dime through bankruptcy and will receive a fair portion through debt settlement. He was very nice and told me to not worry about it.

The female attorney I spoke with before him--oh, my landz...does cracker jacks give away law degrees now???or what???

I am beginning to think that the old attorney wanted my money just as bad as the collection agency's.... :shock:

Just found out also that house/auto insurances are also looking at credit reports to base their premium amounts. I was told that my company is not doing this yet, but in future may.

They said some companies are looking at score and if it bad..leads them to believe that were a high risk for future claims and will raise premiums.?????????

I joined Take Charge America a company that contacted all of my credit cards and reduced the payments and interest charged on my accounts. The accounts are closed while in the program. I had five accounts in the program and now will only have three, the other two payed off. The company does charge about $40 a month for their services and their payment is taken out of my account. When I started the program it really helped out becuase all of my payments were reduced.

Ezzy,

I checked into a consolidation program first and they were going to charge 35.00 monthly and my payments were going to run about 570.00 and I was already paying 600.00

So, it was not going to help me as much as I thought, so I decided to go with the debt settlement and they saved me like 200.00 bucks a month.

OUR whole entire checks were going to minimum payments! We were living month to month and had nothing left extra for anything. When our kids got sick, I had no money to take them to Dr. or to get their medication. I was having to apply for state assistance.

It was horrible. I found this debt settlement company that seems to good to be true and jumped on it. I pray that they are what they say they are.