My husband and I are in the early stages of filing for chapter 13. When we submitted his paycheck stubs to the lawyer his monthly payment was misrepresented by $300 a month. We did a budget for this month and we are not going to be able to make the payment to the trustee and pay for groceries and my husband's diabetic supplies. Are we stuck with this payment or can it be lessen? The lawyer told us that it had to be that much based on the equity in our home. We also are below the state median salary level and thought we would only pay for three years, but the lawyer said that if we pay for three years our payment would be more. We are in Alabama. We would have filed for chapter 7, but we have $30.00 equity in our home.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.