Debt Settlement

[dmudduck442]

Has anyone had either good or bad experiences with debt settlement companies? I myself had a bad experience and was wondering if anyone else has?

[lrprn]

Has anyone had either good or bad experiences with debt settlement companies? I myself had a bad experience and was wondering if anyone else has?

Every single person here who had a debt management or debt settlement plan reports it did them no good whatsoever. Just delayed the inevitable filing and wasted a lot of money is all.

Of course, the few people who have used debt settlement or debt management successfully won't be posting here on a bankruptcy forum

[smarternow]

My experience was very bad

When I was looking for help I did a lot of research, looking for someone who had some good reccomendations, was not paid by the credit card companies, and could give me a plan that I could afford. The one I contacted took a lot of money from me, only to find out several months later that they were not paying my creditors. My first clue to this was right before christmas when a collection agency served me with papers. I was eventually able to get most of my money back, but by then it was way too late. Many years later, I have decided that anyone can post lots of positive testimony on the web. I have also decided from extensive reading that all these companies are out to rip you off in one form or another. Even under the utterly horrible new chapter 13 plan, you are still better off to file and eke it out. The trustees are not nice people, but at least they have to play by rules.

[CATCHMEIFYOUCAN]

Here Here

Has anyone had either good or bad experiences with debt settlement companies? I myself had a bad experience and was wondering if anyone else has?

Bad experience .. PDR Program (Professional Debt Resolution) .. Lost initially $500 .. stood to lose $3000 more had I stayed in the program. They WERE convincing, but very misleading.

When I was looking for help I did a lot of research, looking for someone who had some good reccomendations, was not paid by the credit card companies, and could give me a plan that I could afford. The one I contacted took a lot of money from me, only to find out several months later that they were not paying my creditors.

They iniatially take a big chunk for themselves BEFORE they begin to pay the creditors, even so, they wait til you have a certain amount of income to be able to negotiate with one single creditor.

My first clue to this was right before christmas when a collection agency served me with papers.

No guarantee (like the automatic stay like Bk offers)

I was eventually able to get most of my money back, but by then it was way too late. Many years later, I have decided that anyone can post lots of positive testimony on the web. I have also decided from extensive reading that all these companies are out to rip you off in one form or another.

I'll concur !

Even under the utterly horrible new chapter 13 plan, you are still better off to file and eke it out. The trustees are not nice people, but at least they have to play by rules.

Best to All, Catchmeifyoucan

[JRScott]

They aren't worth your time or effort. There plans are more unrealistic and do less for you than a Chapter 13.

Also keep in mind that if you do get the creditors to accept less as full payment you will be taxed on any forgiven amount of 600 dollars or more as though it were income for that year. They will send you a 1099 if they forgive more than 600 dollars.

Now depending on your situation you might could still avoid bankruptcy, no guarantee though with so little information.

You could do your own kinda debt settlement plan or arrangement where you do a debt snowball. Basically you list all your creditors from smallest amount owed to largest. You pay minimums to everyone but the smallest. You pay all of your disposable to your smallest until it is paid off. This will only work though if your situation isn't so bad that you can't afford minimums with at least a little extra to apply to the smallest.

[dmudduck442]

I'll tell you my story, About a year ago we went with a company ,we were going to do a program where they pay the creditors monthly, but after realizing we might not be able to make that big a payment we called to cancel and told them we were thinking about filing bk. They told us we couldn't with the new bk laws we would have to pay it all back anyway and they could settle our debts for 15-30 cents on the dollar. We fell for their story hook, line, and sinker. I just wish now, we had filed our bk petition right away. I guess we all learn from our mistakes.

[Adchick]

Has anyone had either good or bad experiences with debt settlement companies? I myself had a bad experience and was wondering if anyone else has?

I have a debt settlement story with a happy ending for ya.

I signed up with Private Debt Solutions last September. Basically, I was told to stop paying any of my creditors, pay PDS $136 per month and save $158 per month toward my "settlements". I was told by PDS that with the help of their expert negotiators, I could expect to settle for about 40% of my total debt. I paid them every month and continually asked if they had managed to negotiate settlement amounts with any of my creditors, namely Cashcall who threatens lawsuits on a weekly basis. The ONLY offer PDS managed to secure (and I use that word loosely) was from Cashcall in the amount of $2000 (for a $2600 loan) that had to be paid within 24 hours. They didn't even have it in writing!!

Long story short. Nothing was settled, I am filing bankruptcy this week and PDS has pocketed nearly $1400 of my hard earned money.

(oh, and after not paying Cashcall as instructed for a year, the total amount now due on my account is $5500. gotta love that 79% interest rate)