Re: Debt Settlement – need advice

We did the same thing with exactly the same problems you are having. We finally “fired” them, had them refund all the money they had in our account and started negotiating with the CA’s ourselves. Why pay them to do what we could do ourselves?

How do you do that? You can ‘fire’ them?

Receiving a summons is very scary. My mind starts spinning as to what can happen….especially garnishing of wages.

I don’t own a home. We rent. The car I have is leased. It has been leased since 2005, before I went into Debt Settlement.

I am trying to put as much in savings as I can so I can pay them off quickly.

Are you negotiating with the creditors or leaving it up to the Debt Settlement Company? The summons was sent to me was from the debt collection agency. I don’t know if I should try negotiating myself.

Would it be alright if I email you privately? I have so many questions and need someone who’s going through this.

You hit the nail on the head. You don’t need to hire anyone to call the CC companies for you. Especially companies that are unethical like the one mentioned. Debt settlement is for people who want to pay their debts but can’t afford to pay the whole thing. And you should try to keep in contact contact with creditors so they don’t sue you.

The very things y’all describe are good reasons why one shouldn’t pay someone to do this. You can do it yourself and do it just as well.

Depends on the state you are residing in, usually you may file a simple answer to the court within 30 days of being served your summons. That way you may buy some time, about 3 months for a case management conference. Sometimes it takes 3 conferences, 3 months apart, (the duration is about 9 to 12 months) to come to the actual trial. at least you have 3 months to negotigate with the credit card company.
If you had been served summons and not answered the lawsuit in a definite time (in CA, 30 days), you will lose your lawsuit by default.

My cousins had similar experiences. He found a debt management company, POA and paid some fee. Eventually he got sued by Capital One and lost the lawsuit because the debt counseling company messed up. He paid the debt counselor every month or so, but sounds like the debt counseling company kept most of money, and paid a liitle or none to the creditors. This company eventually been sued by the consumers in a class action and went bankrupt.

The best way is handle by yourself. If times goes by, most creditors will let you have 50% or 70% settlement. The tricks are ignoring them for a couple of months, then they will mail you settlement notice. and you know sometimes you know the debt you owed by one company, will be sold to some 4th to 5th tier credit card company and issue you a new card with 30 to 40% balances and ask you to pay monthly and regain that credit line.