Care One credit counseling's settlement program?

I am currently using this program. I feel like I can breathe again. Too much debt and mounting hospital bills. They saved me $750.00 per month. It is an answered prayer.

I just got off the phone with Care One. I was only interested in settlement on my American Express since I am working out something with Citibank. Interestingly enough, the guy I spoke with told me to just go with the dmp that I found---although he kept insisting Amex would not work with DMP's. However, I know from this forum that Amex will work with DMP's as long as the company is non-profit which Care One is not. Anyhow, the payments to the DMP are pretty close to what Care One would want for a settlement plan. That just confirms to me that I need to stick with the DMP.

Also just found out that my husband is returning three weeks early from his business trip! Now we can talk about accessing some retirement money to help and about adding our joint cards to the DMP. :-)

Hi,
I researched various alternatives for payment of our debt that I created that is approximately $25,000. My husband and I decided to go with CareOne which is a network of companies. Our account is being handled by CESI. We have made 2 payments in the debt management program. We are in our late 50's with a low rate mortgage that we dont' want to touch. We have about 12 years left on a 15 yr mortgage.

Most of our creditors have settled on the monthly payments except HFC and 2 small loans with Wells Fargo ($2000). HFC is the most horrible one to deal with. CESI made payments to Wells Fargo, but the checks were never received. They called me at home, claiming they never received the 2 proposals that were sent.
I had to pay Wells Fargo online to make my accounts current.
they kept calling me at home. I got a call at 9 am on a Sunday morining.

A good friend insisted that I see a bankrupcy attorney. I called my lawyer whio suggested someone in my home town, who will see me as a courtesy to him and will give me a 5 minute consultation to look over our accounts, numbers, budget etc.
I do not think that he will charge me a fee. If he does, I imagine it will be not be expensive. I am in the proicess of gathering all the documentation.

I have gotten some great advise from mobil 0311 but am having trouble reaching his homepage on my computer.Hope he sees this posting.
Thank you for all your sage advise.

My friend insists that I will be saving money by declaring bankrupcy and we will be able to pay cash from the money we save by declaring bankrupcy rather than pay Care One their fee each month.

My big questions is this, isn't better to be in a dmp not a settlement plan than face bankrupcy??????????????????.

Care One told me that we will pay off our debts in 4 years a
nd they will charge us approximately $45. a month fee.I know that my credit score will reflect a debt management program,
but I work in a public service job and can not be bothered at work by calls or lawsuits. I guess I am looking for some moral support. My husband does not like the bankrupcy idea, one bit.
Also don't you have to pay taxes if you declare bankrucy? You don't get off without some financial penalty.
Pennysaver.
PS I have also researched the articles on this forum dealing with debt management, settlement and bankrupcy. I guess
that I am just looking for some moral support

If you can afford the minimum payment for a DMP I would do that before debt settlement. Debt settlement is better for people in a hardship who are overextended and thus their bills are either going to be delinquent or already are. As far as you being concerned about paying taxes on the forgiven debt , I wouldn't sweat that. You may very well be insolvent and may not pay any taxes. If you are overextended to the point you can't even afford a 3 year settlement program or shorter than you may want to consider bankruptcy. I Hope this helps.

PS : Thanks for the compliments.

dmp is your best choice first, if you cant do that then its settlement programs. And bk should be your absolute last resort.

I agree with mobile, you probably would probably fall under the insolvent category. But even if you dont, dont sweat that either. Before i found out about the insolvent form, i did pay the irs 600.00 for a settled account. My settlement was still less than 50% even when oweing the irs 600$. That was 600 i shouldnt have paid but still cheaper than the full balance of the cc.

also the irs lets you set up a payment plan to if you cant afford the whole amount. So dont worry too much about the irs.

Hello everyone,
I have read all of the replys on here and I just want to say that if you are looking to resolve your debt in a timely manner, then you should look into a law firm that will resolve it for you. Atleast you will be able salvage your credit in the end. With dmp and ccc program will harm your credit because it shows up on your credit report as a 3rd party. and that shows the lender that you are unable to handle your own financial affairs and had to use a 3rd party to pay them. So really do your research about these companies before signing up with them. You can contact me as I do have more information about good programs out there. reach me at [email]blessedman93@yahoo.com[/email]