Debt Settlement versus bankruptcy

[wanttobehappy57]

Don't do it!

Do not go to a debt settlement company. I, too, thought it would be a great idea. Guess what, because of the debt settlement company, I was forced into filing chapter 13! Danger signs should flash in front of your eyes when considering doing that. I could have already had a year paid into a chapter 13 plan if I had done that in the beginning. Going to one of those companies caused me to go into debt further for $10,000 waiting on them to negotiate with my creditors.

[Broke1234]

Do not go to a debt settlement company. I, too, thought it would be a great idea. Guess what, because of the debt settlement company, I was forced into filing chapter 13! Danger signs should flash in front of your eyes when considering doing that. I could have already had a year paid into a chapter 13 plan if I had done that in the beginning. Going to one of those companies caused me to go into debt further for $10,000 waiting on them to negotiate with my creditors.

why

[BKParalegal]

wanttobehappy, went to a "debt settlement" company that really isn't a debt settlement company. The scam they pull is they have you pay so much a month until you accrue enough for them to try to settle an account. The problem is by the time you have saved enough money, the penalties, interest and the fact that they will probably already charged off the debt and sold it, negates anything you were trying to do.

A real Debt Settlement only works if you have the cash on hand to settle within 60 to 90days of negotiation. I only do settlement's where the client has access to their 401k, or has been pre-approved for a HELOC or 2nd Mortgage, otherwise it doesn't work.

Good Luck

[Broke1234]

I sent you a PM

[BKParalegal]

I sent you a PM back