Important question
Date: Sun, 06/26/2011 - 17:19
Is debt settlement the wrong way to go, I was just afraid of filing Bankruptcy & wanted to try to pay as much of my debts & get out of debt as quickly as I could. I am going to be retiring before to many more years & am not ready.
Please give me an opinion on this if you can?
Thank you,
Judy
Hi! Welcome to the Forums! Debt settlement is much better than
Hi!
Welcome to the Forums!
Debt settlement is much better than bankruptcy. This is because bankruptcy hurts your credit score big time. It may lower your credit score by 200-250 points.
You should contact the law firm and ask them about the number of accounts they have settled. Is it mentioned in your contract that they will settle all the accounts? Check your contract again. If the law firm has made a written promise to settle all your accounts within the next 18 months, then they ought to fulfill their promise.
No credit repair organization, including an attorney, can ever p
No credit repair organization, including an attorney, can ever promise to get all debt settled. Those are factors beyond their control, dependent upon terms mutually agreed to and abided by between the parties.
The issue is the agreement between you, even though negotiated by a credit repair organization, and the creditor.
If that agreement expires or is terminated due to failure to abide by its terms, the creditor is free to take any legal remedies. While in force, it is a contract binding upon them, and thus can act to forstall legal action. Once the "contract" expires, all bets are off.
Negotiating a payment agreement can be good, and forstall legal action, provided its terms are fulfilled.
