Consolidation or Chapter 13??
Date: Wed, 03/07/2012 - 10:27
My husband and I have been enrolled in a debt consolidation program ( Crusader Consumer Services ) for approx. 8 months. We have had poor communication with them over the past month and a half. This company promised that our settlement process would begin at 6 months. Not one account that we enrolled has been settled. We are being charged 15% for a service at this point and not having any relief on our end. We were told by the consolidation company they would settle ONE account at the end of the month. We ask these questions but do not get straight forward answers. So.....
We went for a consultation with a laywer regarding chapter 13 bankruptcy because of the lack of trust we have developed with this company. We are not sure what to do. Do we stay with the company or move forward with filing chapter 13? Any feedback would be greatly appreciated. Thank you!
You can disengage the services of this debt consolidation compan
You can disengage the services of this debt consolidation company and negotiate a settlement with each of your creditors separately. It will give you a better grip over the entire situation instead of having to depend on a deadbeat consolidation service. Consider negotiating for a settlement with your creditors before filing for bankruptcy.
Yeah, I would suggest quit working with this company. Doing set
Yeah, I would suggest quit working with this company. Doing settlements is easy...simply call up and negotiate the settlements your self. Then have the creditor fax or mail you the settlement offer. The only reason for you to move to bankrutpcy right now was if a creditor was moving towards suing you.
Thanks so much for your advice!! I like the idea of having to wo
Thanks so much for your advice!!
I like the idea of having to work now with the creditors, probably something we should have done a while ago. However, our accounts have moved to collection agencies. Can I work with them or can I try and contact the creditors?
You will have no option but to work with the collection agencies
You will have no option but to work with the collection agencies.
The downside to debt consolidation or debt settlement is it??
The downside to debt consolidation or debt settlement is it???s unregulated. Even though the companies tell you that they're in control, it still is the creditor that's in charge. Many people start out in a debt settlement or debt consolidation program and end up getting sued because they're not making their payments to save up for the program. The creditor is not obligated to anyone to agree to the deal. If you want to consolidate your debts, many times it's best to contact the creditors on your own and set something up. If you decide to do that make sure you get everything in writing before giving the creditor any money. Make sure that they report the account as paid in full and not a charge off. Also make sure that they are not going to 1099 you for the deficiency of the account. Many people like yourselves end up in the office of a bankruptcy lawyer and now considering filing bankruptcy. Filing bankruptcy uses the power of the US legal system and while the process is going on the individual is protected by the automatic stay stopping the creditors from contacting the debtor. I would be careful if you're giving these people money for the service.